QUOTE AND NEWS
TheStreet.com  11 hrs ago  Comment 
NEW YORK (TheStreet) – Salesforce.com soared by double digits following a strong fourth quarter and raised guidance for the current fiscal year. Competitor Workday did not fare as well as one analyst questioned its future revenue outlook...
TheStreet.com  Feb 26  Comment 
NEW YORK (TheStreet) -- TheStreet's Jim Cramer says salesforce.com  is delivering on all fronts. Cramer says company co-founder Mark Benioff continues to deliver, as salesforce.com reported full-year revenue grew to $5.4 billion. Cramer...
Motley Fool  Feb 26  Comment 
Salesforce is up on solid Q4 results and impressive growth in deferred revenue. Here's what investors need to know.
Benzinga  Feb 26  Comment 
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Salesforce.com, inc. (NYSE: CRM) shares were trading higher by $6.88 910 percent) at $69.75. The rally has obliterated its former all-time high...
Forbes  Feb 26  Comment 
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Salesforce.com Inc (NYSE: CRM), where a total of 84,023 contracts have traded so far, representing approximately 8.4 million underlying shares....
Forbes  Feb 26  Comment 
It disproved fears of slowing growth and reported a fourth quarter revenue growth rate of 26% year on year, while full year revenue accelerated by an impressive 32% year on year. Salesforce's near-term revenue outlook also remains robust as its on...
Forbes  Feb 26  Comment 
This week brought an interesting juxtaposition of events that illustrates the difficulty old tech IT suppliers face in transitioning to the world of cloud services, the distance two important companies, IBM and HP, have traveled on that journey...
Financial Times  Feb 26  Comment 
US equity markets hover near record highs
Jutia Group  Feb 26  Comment 
[at Investor's Business Daily] - Salesforce.com (CRM) appeared to get back on track with its Q4 earnings reported late Wednesday, which featured better-than-expected billings growth and a gain in large deals, and its shares hit a record ... Read...
Benzinga  Feb 26  Comment 
In a report published Wednesday evening, Credit Suisse analyst Philip Winslow commented on salesforce.com, inc.'s (NYSE: CRM) fourth-quarter print. "Despite significant foreign exchange headwinds, Salesforce.com's FQ4 revenue and billings were...




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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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