QUOTE AND NEWS
Forbes  2 hrs ago  Comment 
CRM looks good into earnings tonight
TheStreet.com  4 hrs ago  Comment 
NEW YORK (TheStreet) -- Salesforce.com , a software company focusing on applications in customer relationship management, was the subject of takeover chatter on April 29, with Oracle the likely suitor. The trading range for the stock on...
Benzinga  Aug 19  Comment 
salesforce.com, inc. (NYSE: CRM) and Intuit Inc. (NASDAQ: INTU) are scheduled to report their quarterly financial results on Thursday afternoon after the market closes. Below is a look at what the Street, the crowd and management are expecting...
Wall Street Journal  Aug 19  Comment 
Salesforce.com needs to keep selling big to justify its premium valuation.
Clusterstock  Aug 19  Comment 
It didn’t take too long for InsideSales.com CEO Dave Elkington to learn that Salesforce might be interested in investing in his company earlier this year. Salesforce had invested a small amount in InsideSales’ previous round, through its VC...
Forbes  Aug 19  Comment 
In April, Salesforce CEO Marc Benioff made a bold promise: to eliminate the gender pay gap among his 16,000 employees. The two female executives behind the plan say making that promise a reality will take several years of hard, complicated work.
Forbes  Aug 19  Comment 
The company has been able to achieve year-on-year revenue growth of over 30% each quarter until the first quarter of this year, when it fell to 23%. The trend likely continued in the second quarter, with revenue growth of just over 20%. Not...
TheStreet.com  Aug 18  Comment 
NEW YORK (TheStreet) -- The much-rumored acquisition of cloud specialist Salesforce.com hasn't happened yet, and with the company's market capitalization approaching $50 billion, only a handful of appropriate bidders are large enough to absorb...
TechCrunch  Aug 13  Comment 
 Customers of Salesforce’s Community Cloud will soon be able to add their own buy buttons. The Community Cloud allows businesses to build sites where customers can interact with the company and with each other. By introducing the ability to...




RELATED WIKI ARTICLES
 

Salesforce.com provides enterprise cloud computing applications such as customer and collaboration relationship management (CRM) to businesses of various sizes and industries.[1] By providing subscription-based CRM applications to record, track, manage, and analyze data concerning sales, customer service and support, and marketing operations, Salesforce.com's CRM applications provide customers the ability to build these systems without investing in new software, hardware, and other infrastructure.[2] Salesforce.com's main products and services include CRM applications, the Force.com, AppExchange, and related consulting and maintenance services. Salesforce.com has over 92,000 customers worldwide and derives more than 30% of its revenue from overseas sales. While providing a potential less expensive platform, Salesforce.com faces heavy competition from large business customers who have greater resources and entrenched customer relationships with larger businesses.[3] As these businesses compete for cost conscience customers , profit margins continued to remain depressed.[4]


Business Growth

Through the acquisitions of InStranet in 2008 and Jigsaw in 2010, Salesforce.com has increased its offerings of software-as-a-service, or SaaS, and expanded into adjacent markets.[5] Salesforce.com has developed business applications beyond CRM applications that are designed to attract larger businesses as well.[6]

Trends and Forces

High-degree of competition threatens Salesforce.com's market share and profitability

With greater resources and established relationships with large business customers, large enterprise software companies like SAP and Oracle (ORCL) are a significant threat to Salesforce.com's ability to grow into new markets.[7] In addition, these companies have the ability to develop large research and development facilities, which put pressure on Salesforce.com to develop and market new products and services. In response, Salesforce.com has expanded its product lines through key acquisitions in 2008 and 2010.[8]


Salesforce.com's cloud-based platforms also face competition from cloud-computing rivals like Google (GOOG) and Microsoft (MSFT) as well as from open-source alternatives like SugarCRM.[9] These companies are market similar platforms to those marketed by Salesforce.com that have similar price-advantages that attracted small and medium-sized businesses to Salesforce.com.[10]


Salesforce.com declining 2011 profitability margins partially reflect increased competition in the CRM space as software providers compete for cost-sensitive contracts.[11] In addition, many of Salesforce.com's SaaS competitors have the potential of taking away clients and revenue from the Company.[12]

Salesforce.com needs growth to keep pace with high customer acquisition costs

Salesforce.com's marketing expenses represent almost half of the Company's revenue. While marketing expense represent one type of cost, it illustrates how critical scale is to the Company's profitability.[13] Compared to those of its competitors SAP AG (SAP) and Oracle (ORCL), Salesforce.com operating margins are below industry average.[14] With larger deals, Salesforce.com lowers its customer acquisition costs. In response, Salesforce.com has launched products designed to increase investment in the Company's services. Force.com and Chatter Cloud both represent newly-launched products designed to attract customers to a "suite" of Salesforce.com offerings.[15]

Competition

Within the CRM-space, Salesforce.com's competitors offer open-source, SaaS, and traditional software solutions.[16] Competition is high,which has led to relatively diminished margins for Salesforces.com. Its key competitors include:



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