QUOTE AND NEWS
Cloud Computing  Jul 28  Comment 
Etherios taps into the power of salesforce.com's social, mobile and connected cloud technologies to help accelerate business transformation for companies using Service Cloud July 28, 2014 - Etherios, a division of Digi International and a...
DailyFinance  Jul 28  Comment 
OTTAWA, ONTARIO -- (Marketwired) -- 07/28/14 -- ProntoForms Corporation (TSX VENTURE:PFM), the maker of ProntoForms, a leading mobile form solution to improve enterprise and SMB business processes, now offers direct integration with Salesforce, a...
SeekingAlpha  Jul 27  Comment 
By Shawn Arshad: Cloud Computing Demand for cloud computing and real-time data integration and analyses is increasing. Importance of appropriate evaluation of KPI's and the relevance of real-time CRUD, is gaining more spotlight....
Cloud Computing  Jul 24  Comment 
Research and Markets (http://www.researchandmarkets.com/research/nzmqbc/global_saasbased) has announced the addition of the "Global SaaS-based CRM Software Market 2014-2018" report to their offering. read more
Motley Fool  Jul 22  Comment 
This ERP and CRM company is growing fast, but will it be able to sustain its growth?
SeekingAlpha  Jul 22  Comment 
ByIAEResearch: Oracle (NYSE:ORCL) has been performing well in the software as a service (SAAS) segment during the last quarter - it achieved a 25% increase in revenue from this particular segment. However, the company continues to face fierce...
TechCrunch  Jul 21  Comment 
 Urban Compass, the startup that runs an online marketplace for people to rent, buy, and sell apartments, announced today it has closed on $40 million in new funding. The round, which is Urban Compass’ Series B, includes participation from...
Forbes  Jul 21  Comment 
Last week I was at a conference for the Force United consortium, which is focused on helping companies build their software on the Salesforce1 Platform. The founders include Kenandy, ServiceMax and Apttus (I recently wrote a profile on Apttus).
Forbes  Jul 21  Comment 
A now-neutralized Salesforce.com will find itself up against an awakened giant.
Cloud Computing  Jul 17  Comment 
Elasticsearch, Inc., provider of an end-to-end real-time search and analytics stack, today announced that Aaron Katz has joined the company as Senior Vice President of Worldwide Field Operations. Katz is the former SVP of Enterprise Sales at...




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:



It's like you're on a misison to save me time and money!

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki