QUOTE AND NEWS
Benzinga  Apr 26  Comment 
Macquarie’s Sarah Hindlian expects salesforce.com, inc. (NYSE: CRM) to witness a robust FY16, with the launch of its new user interface, ongoing margin expansion and price increases. Hindlian maintains an Outperform rating on the company, with...
Forbes  Apr 25  Comment 
Salesforce can’t be the next Windows or Linux and presumably doesn’t want to be… it wants to provide a componentized world of pick and mix functionality for people to build software. Not everyone who builds apps on App Cloud is an expert...
The Economic Times  Apr 19  Comment 
Nasscom has chosen customer relationship management startup SalezShark over the likes of Microsoft and American cloud computing company Salesforce. com
TechCrunch  Apr 12  Comment 
 No sooner had Facebook announced it was opening up Messenger for developers to build bots, when two players with an eye on sales and service in the enterprise — Salesforce and Zendesk — announced new products to manage Messenger traffic on...
Motley Fool  Apr 12  Comment 
Big Blue is at it again, acquiring another cloud solutions provider to bolster its transition efforts.
Clusterstock  Apr 12  Comment 
Marc Benioff hired former Oracle sales star Keith Block in 2013 and can't stop heaping praise promotion and gifts on the guy. In fact, he was so happy with Block, he had Salesforce buy him a $41,000 watch, according to documents filed with the...
TechCrunch  Apr 12  Comment 
 Zuora has always been a bit ahead of the curve when it comes to the subscription economy. Company founder Tien Tzuo recognized something in 2008 when he left a comfortable job at Salesforce to launch a new company. The world was about to change...
Benzinga  Apr 12  Comment 
Jim Cramer said on CNBC's Mad Money that he can't recommend a long position in Ford Motor Company (NYSE: F) and General Motors Company(NYSE: GM) at the moment. Cramer thinks that Microsoft Corporation (NASDAQ: MSFT) is inexpensive on this year...




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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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