QUOTE AND NEWS
TheStreet.com  3 hrs ago  Comment 
NEW YORK (The Street) -- After better-than-expected results from cloud giant Salesforce.com , there's no question that competition for fast-growing markets like the cloud and Big Data has grown more fierce. Workday , which has quickly...
Benzinga  May 22  Comment 
Shares of Salesforce.com, inc. (NYSE: CRM) spiked up over 2 percent Friday following a report from CNBC’s David Faber that the company had been in talks with Microsoft Corporation (NASDAQ: MSFT) about a purchase. According to the sources...
TheStreet.com  May 22  Comment 
NEW YORK (TheStreet) -- Shares of Salesforce.com Inc  are up 2.3% to $74.59 on heavy volume in afternoon trading Friday, following reports that Microsoft Corp offered the company $55 billion to acquire it, according to CNBC's David Faber....
Forbes  May 22  Comment 
The worldwide CRM market grew 13.3% in the last year, from $20.4B in 2013 to $23.2B in 2014. 47% of total CRM software revenue in 2014 was generated from SaaS-based CRM applications.
Jutia Group  May 22  Comment 
[at MarketWatch] - Microsoft Corp. had reportedly been in talks to buy Salesforce.com earlier this spring but the discussions fizzled out after the two failed to see eye-to-eye on price, according to CNBC. Microsoft was ... Read more on this. ...
Benzinga  May 21  Comment 
Shares of salesforce.com, inc. (NYSE: CRM) opened strong on Thursday, up by over 5 percent, following better than expected first quarter numbers posted by the company after the closing bell on Wednesday. Samad Samana, vice president at FBR...
TheStreet.com  May 21  Comment 
NEW YORK (TheStreet) -- Shares of Salesforce.com are higher by 3.73% to $72.78 in afternoon trading after KeyBanc Capital Markets increased its price target to $80 from $77 and reiterated its "overweight" rating for the San Francisco-based...
Forbes  May 21  Comment 
The company continued to defy the law of large numbers as revenues expanded by 23% year on year to reach $1.51 billion in the first quarter. Revenue growth was at the higher end of the company's guidance of 21% – 23%. Deferred revenue continued...




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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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