QUOTE AND NEWS
Forbes  Mar 31  Comment 
After Governor Mike Pence signed the restrictive Religious Freedom Restoration Act, which allows Indiana businesses to turn away customers who may conflict with their religious beliefs, including gay couples, online activists swung into action....
Benzinga  Mar 28  Comment 
Oppenheimer's latest report focuses on identifying stocks with technically bullish charts. After analyzing the technology sector, Oppenheimer chose four stocks to highlight as technical buys: salesforce.com, inc. (NYSE:...
MarketWatch  Mar 27  Comment 
Apple Inc. CEO Tim Cook tweeted Friday that he is "disappointed" in Indiana's new religious-objections law and called on Arkansas Gov. Asa Hutchinson to veto a similar measure under consideration in that state. Cook joins Salesforce.com CEO Marc...
Jutia Group  Mar 27  Comment 
[at TheStreet] - Salesforce.com and Monster Beverage beat earnings estimates and rocketed to overbought highs, now losing altitude. Read more on this. salesforce.com, inc. (CRM), currently valued at $43.01B, opened this morning at $65.78.   A...
Market Intelligence Center  Mar 27  Comment 
MarketIntelligenceCenter.com's patented algorithms have identified an attractive covered-call trade on salesforce.com inc (CRM). Look at the Jun. '15 $67.50 covered call for a net debit in the $62.59 area. This trade has a duration of 84 days....
TheStreet.com  Mar 27  Comment 
NEW YORK (TheStreet) -- Shares of Salesforce.com and Monster Beverage surged following better-than-expected earnings reports on Feb. 25 and Feb. 26, respectively. Whenever shares of a company gap higher and subsequently set an all-time...
Jutia Group  Mar 26  Comment 
[at MarketWatch] - SAN FRANCISCO (MarketWatch) -- Salesforce.com Inc. Chief Executive Marc Benioff tweeted Thursday the cloud computing company is canceling "all programs that require our customers/employees to travel ... Read more on this. ...
MarketWatch  Mar 26  Comment 
Salesforce.com Inc. Chief Executive Marc Benioff tweeted Thursday the cloud computing company is canceling "all programs that require our customers/employees to travel Indiana" in response to a bill signed into law earlier Thursday by Indiana...
Forbes  Mar 26  Comment 
When Martin Luther King exclaimed that he had a dream, he probably didn't expect support to come from the direction of a billionaire Silicon Valley CEO. But that is what we see today as Salesforce.com and its CEO Marc Benioff take a stand against...




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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