QUOTE AND NEWS
DailyFinance  10 hrs ago  Comment 
SAN FRANCISCO, CA -- (Marketwired) -- 04/04/14 -- Okta today announced the addition of Krista Anderson, formerly a senior vice president at salesforce.com, as the company's first chief customer officer. The appointment is a direct reflection...
Benzinga  Apr 3  Comment 
Shares of Salesforce.com (NYSE: CRM) are down four percent to $55.83 in the face of some bullish comments from Pacific Crest. Analyst Brendan Barnicle sees 30+ percent growth annually under President Keith Block, who gave a presentation at...
TechCrunch  Apr 3  Comment 
CRM behemoths like Salesforce and Oracle, and more mature startups like Domo, have made some significant inroads into mobile and specifically apps for mobile salespeople, but a new startup believes that its streamlined, mobile-first solution can...
Cloud Computing  Apr 3  Comment 
XOEye Technologies, re-imagining industrial business processes with HD recording and streaming eyewear and third-party developer ecosystem, today presents its industrialized enterprise wearable technology suite at DEMO Enterprise, the conference...
StreetInsider.com  Apr 2  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Salesforce.com+%28CRM%29+Debuts+%27Industries%27+Strategy/9345031.html for the full story.
DailyFinance  Apr 2  Comment 
CHICAGO, IL -- (Marketwired) -- 04/02/14 -- SpringCM®, the leader in Content Cloud Services, today announced the delivery of the SpringCM File It! and Get It! apps for SpringCM for Salesforce, which embeds a secure content cloud in...
Cloud Computing  Apr 2  Comment 
LiveOps, Inc., the global leader in cloud contact center and customer service solutions, announced today that Axcient, a leading provider of cloud–based Recovery-as-a-Service solutions, has deployed the LiveOps ...
TheStreet.com  Apr 1  Comment 
NEW YORK (TheStreet) -- TheStreet's Jim Cramer says investors need to see money return to the highest-growth names, which have had a shrinking price-to-earnings multiple, as the market moves from the first quarter into the second quarter. Cramer...
DailyFinance  Apr 1  Comment 
WALTHAM, MA -- (Marketwired) -- 04/01/14 -- CloudLock, the leading cloud information security provider, announced today the general availability for CloudLock for Salesforce. This newly released solution allows enterprises to enforce their...




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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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