QUOTE AND NEWS
Forbes  May 28  Comment 
Worldwide customer relationship management (CRM) software totaled $26.3B in 2015, up 12.3% from $23.4B in 2014. SaaS revenue grew 27% yr-over-yr, more than double overall CRM market growth in 2015. Asia/Pacific grew the fastest of all regions...
Benzinga  May 27  Comment 
Pacific Crest reiterated an Overweight rating and $800 price target on shares of Amazon.com, Inc. (NASDAQ: AMZN). According to analysts Brent Bracelin, Alyssa Johnson and Edward Yruma, the firm’s bull thesis on Amazon is reinforced by the fact...
New York Times  May 26  Comment 
Salesforce, itself a cloud-computing company, will use Amazon Web Services to grow more rapidly in a deal valued at $400 million.
MarketWatch  May 26  Comment 
Salesforce.com Inc. is pinning its international expansion plans on Amazon.com Inc.’s cloud-computing services, a deal that will be worth $400 million over four years to Amazon, according to a person familiar with the matter.
Clusterstock  May 25  Comment 
Salesforce stock closed at an all-time high on Wednesday, as Wall Street continues to be impressed by the 17-year old cloud software maker's robust growth across almost all segments. Salesforce reached a closing price of $83.57 Wednesday,...
TechCrunch  May 25  Comment 
 AWS announced today that it was expanding its relationship with Salesforce.com, with Salesforce naming the cloud giant a preferred cloud provider. The agreement should help Salesforce increase its international presence without having to...
Benzinga  May 25  Comment 
salesforce.com, inc. (NYSE: CRM), the Customer Success Platform, revealed that it launched Service Cloud Lightning Snap-ins to support enterprises provide connected, personalized service across any device. According to the company, with Service...
Benzinga  May 24  Comment 
On CNBC's Fast Money Final Trade, Pete Najarian suggested that salesforce.com, inc. (NYSE: CRM) is going higher. He is bullish because he noticed somebody is buying the July 90 calls and selling puts. David Seaburg recommended a long position...




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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