Benzinga  Jan 12  Comment 
Salesforce.com, inc. (NYSE: CRM) is welcoming a new Executive Vice President of Global Strategic Affairs, but the candidate may not have the background you'd expect. Political reporter Monica Langley is ending her 20-year tenure with The Wall...
Forbes  Jan 12  Comment 
One of Salesforce's partners and power users looks back at the CRM leader's analyst summit to breakdown what Marc Benioff's team is doing well and what they must focus on in 2017 to sustain success.
Benzinga  Jan 11  Comment 
“We are positive on Yelp Inc (NYSE: YELP)'s leadership position as a leading destination for reviews/info on local businesses and like the recent trajectory of accelerating local ad rev. growth, upward est. revisions, and improving incremental...
Clusterstock  Jan 10  Comment 
Salesforce famously went on a record shopping spree last year, spending roughly $5 billion on acquisitions. Add that to its failed bid for Microsoft-LinkedIn's $26 billion deal, and its surprise interest in buying $12 billion Twitter, and...
SeekingAlpha  Jan 9  Comment 
TechCrunch  Jan 9  Comment 
 Salesforce founder and CEO Marc Benioff today joined an increasing number of Silicon Valley luminaries who are backing the first ever coding academy to be created in Gaza, Palestine. In doing so they are putting their stamp of approval on a...
Forbes  Jan 7  Comment 
Purpose is not a cause, it is a way of operating your business. Arguably it must become the way an organization operates. Although there are some ‘social good’ aspects of demonstrating a higher organizational purpose, it does not come to be...
Forbes  Jan 6  Comment 
As it approaches $100 million in revenue and looks to move beyond the Salesforce ecosystem, partner FinancialForce has tapped a former key Salesforce executive in Heroku chief Tod Nielsen to serve as its new CEO.
Benzinga  Jan 5  Comment 
Bank of America expects the software space to see M&A transactions in 2017 similar to that of 2016, with salesforce.com, inc. (NYSE: CRM), ServiceNow Inc (NYSE: NOW), Splunk Inc (NASDAQ: SPLK), Tableau Software Inc (NYSE: DATA) and Cornerstone...
Benzinga  Jan 4  Comment 
Canaccord Genuity said in a note on Wednesday investors remain concerned salesforce.com, inc. (NYSE: CRM) has come unglued in terms of pursuing a large M&A deal. Tuck-In Acquisitions Likely Analyst Richard David believes there is no $4...


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]


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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