QUOTE AND NEWS
Jutia Group  6 hrs ago  Comment 
[Market Realist] - In 2014, Gartner named Salesforce.com (CRM) as the leader in the customer relationship management (or CRM) space for the fourth consecutive year. In 2013, CRM Switch conducted a survey across different ... Read more on this. ...
Forbes  6 hrs ago  Comment 
Recently, I met up with a friend for drinks, and she asked me to recommend some new apps. (With friends like these, who wants to spend all day combing through Apple Store reviews?) “You always have good apps,” she said. “What’s your...
Wall Street Journal  Sep 12  Comment 
Cisco Systems said Marc Benioff, chairman and chief executive of Salesforce, will step down from Cisco's board of directors in November.
SeekingAlpha  Sep 12  Comment 
By Marshall Hargrave: Salesforce.com (NYSE:CRM) is one of those high-flying SaaS companies that trades at a high valuation - 86x forward earnings. It reported 2Q earnings that had investors spirits heightened. Revenues grew to $1.32 billion, up by...
SeekingAlpha  Sep 12  Comment 
By Critical Timing: Salesfore.com (NYSE:CRM), the largest SaaS company, delivered a stellar quarter during its latest earnings call - at least as far as bottom line growth is concerned. The company recorded 38% topline growth with revenue of...
TechCrunch  Sep 12  Comment 
 Salesforce.com, one of the most visibly involved tech companies in San Francisco local politics and community, said it’s gifting $5 million to the city’s public schools and $1 million to Code.org for computer science education. “We’re...
Jutia Group  Sep 12  Comment 
[PR Newswire] - SAN FRANCISCO, Sept. 12, 2014 /PRNewswire/ -- Mayor Edwin M. Lee, Superintendent Richard A. Carranza and salesforce.com Chairman and CEO Marc Benioff today announced the expansion of the Mayor's Middle Grades Leadership Initiative...
SeekingAlpha  Sep 12  Comment 
By Andrew Sachais: Salesforce.com's (NYSE:CRM) international expansion could fuel revenue growth for years to come. In early 2014, Salesforce announced its intention to open data centers in France, as well as leverage its pan-European presence to...
SeekingAlpha  Sep 11  Comment 
By Stock Gazer: Tech firms offer a rather attractive future to investors owing to the fact that the industry is rapidly growing. Technology seems to be advancing each day which basically means that tech firms aren't likely to go out of business...




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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