QUOTE AND NEWS
Market Intelligence Center  10 hrs ago  Comment 
After Friday’s trading in salesforce.com inc (CRM) MarketIntelligenceCenter.com's patented algorithms uncovered a trade that offers a 6.20% return or 33.75% on an annualized basis (for comparison purposes only), while providing 4.88% downside...
CNNMoney.com  Jun 13  Comment 
Read full story for latest details.
Benzinga  Jun 12  Comment 
m>PATH has created a new way for businesses to assemble and deploy apps to their employees. Founded by Claus Moldt, the former global CIO of salesforce.com, inc. (NYSE: CRM), m>PATH allows its customers to create apps using a drag-and-drop...
CNNMoney.com  Jun 12  Comment 
Read full story for latest details.
Financial Times  Jun 10  Comment 
Almost half of shareholders vote against $39m package for software group head
TechCrunch  Jun 9  Comment 
 Talkdesk, which creates software that helps companies create digital call centers that integrate with their other internal company software, said it has raised $15 million. Companies use Talkdesk to create centers where customers can call into...
Jutia Group  Jun 9  Comment 
[at TheStreet] - Salesforce.com (CRM) had coverage initiated by analysts at Wunderlich this morning with a 'buy' rating. Read more on this. salesforce.com, inc. (CRM), with a current value of $46.99B, started trading this morning at $72.33.   ...
TheStreet.com  Jun 9  Comment 
NEW YORK (TheStreet) -- Shares of Salesforce.com Inc  were down 0.97% to $71.14 in early market trading Tuesday, despite getting coverage initiated with a "buy" rating by analysts at Wunderlich this morning. Analysts at the firm issued a...
TheStreet.com  Jun 9  Comment 
NEW YORK (TheStreet) -- RATINGS CHANGES Amedisys was upgraded to buy from hold by Deutsche Bank, which set a 12-month price target of $41. New management can improve the company's growth profile, Deutsche said. Arcadia Biosciences was...
Forbes  Jun 8  Comment 
Since its debut in 1999, Salesforce.com has been the poster child for cloud computing and chief executive Marc Benioff, has been the chief evangelist for Software as a Service (SaaS). The SaaS subscription model enables companies to access...




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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