QUOTE AND NEWS
Forbes  7 hrs ago  Comment 
Having scaled the peaks of the global customer relationship management software market, cloud computing vendor Salesforce.com has now expanded into cloud solutions for industry verticals. Industry verticals refer to cloud solutions specifically...
MarketWatch  Sep 2  Comment 
Salesforce.com Inc. announced a patient relationship health platform Wednesday that will integrate a patient’s electronic medical records with data from wearables and third-party apps like ZocDoc to help doctors keep better tabs of their patients.
Benzinga  Sep 1  Comment 
The 2015 Burning Man festival kicked off in Nevada this week, promising this year’s attendees a unique experience in community, art, self-expression and self-reliance. On the surface, the Burning Man community and the Wall Street community...
TechCrunch  Sep 1  Comment 
 Just a couple of years ago Apttus, a quote-to-cash SaaS company built on top of Salesforce.com, had a couple of hundred employees. Today it has 900 and projects more than 1,000 by the end of the year. And it’s not hiring all of those bodies...
TheStreet.com  Aug 31  Comment 
NEW YORK (TheStreet) -- Salesforce.com    reported earnings last week that beat on the top and bottom lines, and it boosted its full year revenue guidance. The report on Wednesday coincided with the strong rebound rally in the broad market,...
Market Intelligence Center  Aug 27  Comment 
Wednesday’s trading in salesforce.com inc (CRM) gives options traders an opportunity for a 6.38% return. By selling the Oct. '15 $70.00 call and buying the Jan. '17 call at the $37.50 level for a net debit of $30.55, traders will book a profit...
MarketWatch  Aug 25  Comment 
Salesforce.com Inc., which makes software used by salespeople to keep tabs on clients and prospects, on Tuesday announced a variant of its sales-management tools tailored for a specific industry: wealth management.
Wall Street Journal  Aug 25  Comment 
Salesforce.com has created a variant of its sales-management tool tailored specifically for the wealth-management industry.
TechCrunch  Aug 25  Comment 
 Salesforce.com lifted the curtain on Salesforce Lightning today, the completely redesigned version of its core CRM product. As is often the case with Salesforce, the announcement included several pieces. At the same time, it announced the...
TechCrunch  Aug 25  Comment 
 As San Francisco’s population rapidly changes with an influx of new tech money and workers, a big question is what happens to the city’s K-12 schools and what tech’s ultimate influence on local education will be. Will tech’s presence...




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