QUOTE AND NEWS
Reuters  6 hrs ago  Comment 
Salesforce Inc is betting big on healthcare, hiring key personnel and ramping up investment in hopes of replacing outmoded medical industry infrastructure and carving out a $1 billion annual business.
Forbes  Oct 23  Comment 
During the Salesforce.com DreamForce conference this year (disclosure, Salesforce covered my travel and expenses to attend), the company announced Wave, it’s so-called “analytics cloud” product. Wave fills a significant gap in Salesforce’s...
Insurance Journal  Oct 21  Comment 
San Francisco-based cloud software firm Vlocity has launched an app designed for the  insurance industry. The new Vlocity industry app allows large enterprise and medium-size businesses to connect with their customers, partners and employees in a...
Forbes  Oct 20  Comment 
Analytics may seem new but it is really ancient. Let’s face it, the dinosaur “big iron” mainframes have been doing this stuff for decades.
Motley Fool  Oct 20  Comment 
The software giant and CRM leader make good on their partnership, first announced in May.
Forbes  Oct 17  Comment 
Salesforce.com's banner Dreamforce conference in 2014 delivered on many of its promises. For a company that makes $5 billion in revenue per year, Salesforce punches way above its weight when it comes to a party.
Jutia Group  Oct 17  Comment 
[at Investor's Business Daily] - Salesforce.com (CRM) might have to cut prices on its just-launched Wave data analytics software because of tough competition from Tableau Software, says an analyst in a report Friday. The company debuted ... Read...
TechCrunch  Oct 17  Comment 
 Increasingly, companies that compete directly with another have been announcing major partnerships, and we saw a couple of good examples this week with Microsoft and Salesforce and IBM and SAP. Not coincidentally in my view, they...
Jutia Group  Oct 16  Comment 
[at Investor's Business Daily] - Salesforce.com (CRM) investors received a note of caution Thursday, as an analyst cut his price target on Salesforce stock just three days after the company launched its first data analytics visualization ... Read...




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