QUOTE AND NEWS
Clusterstock  May 21  Comment 
Just about a year ago, Salesforce and Microsoft were reported to have engaged in talks for a takeover deal. Microsoft wanted to pay $55 billion for the cloud-software maker, but Salesforce CEO Marc Benioff asked for more, raising the price to...
Clusterstock  May 20  Comment 
Salesforce spent roughly $75 million on the three startups it acquired last quarter, according to a regulatory filing submitted Friday. Salesforce spent $32.8 million on MetaMind, the natural language processing and image recognition startup it...
TechCrunch  May 20  Comment 
 Ad-targeting startup Metadata announced it has raised $2 million in seed funding. Co-founder and CEO Gil Allouche said the company’s technology offers an effective way for businesses that sell to other businesses to find and target new...
Benzinga  May 20  Comment 
Argus analyst Joseph Bonner reiterated Buy rating on the shares of salesforce.com, inc. (NYSE: CRM). The brokerage also maintained its price target of $95. The move comes after the company delivered strong financial numbers for the first...
Motley Fool  May 20  Comment 
The cloud-software titan is winning new business at an impressive clip.
Benzinga  May 19  Comment 
Salesforce.com, Inc. (NYSE: CRM) shares are trading higher by $3.36 at $81.23 in Thursday's session. The catalyst for the rally to nearly a new all-time high is a Q1 beat of a penny along with a slight beat for revenues. The company raised FY 2017...
Benzinga  May 19  Comment 
Morgan Stanley's Keith Weiss reiterated salesforce.com, inc. (NYSE: CRM)'s Overweight rating while increasing the price target from $86.00 to $94.00. The rating change came after salesforce.com reported earrings Wednesday, slightly beating...
Benzinga  May 19  Comment 
salesforce.com, inc. (NYSE: CRM) reported another quarter of strong results, and raised guidance. Wunderlich’s Rob Breza maintained a Buy rating for the company, while raising the price target from $93 to $101. The analyst commented that the...
Financial Times  May 19  Comment 
The software company offers rare growth, but it is surpassed by Amazon




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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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