Benzinga  Oct 2  Comment 
Pete Najarian spoke on CNBC's Fast Money Halftime Report about a bullish options activity in FireEye Inc (NASDAQ: FEYE). He noticed a big volume in the October 2, 32 strike calls and they were trading at around $0.70 at the moment of the purchase....
Benzinga  Oct 2  Comment 
Some of the stocks that may grab investor focus today are: Micron Technology, Inc. (NASDAQ: MU) reported better-than-expected earnings for its fiscal fourth quarter on Thursday. Micron shares climbed 6.97 percent to $15.80 in the after-hours...
Benzinga  Oct 1  Comment 
The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday October 1, 2015: Hearing Unconfirmed Market Chatter of Potential $91/Share Bid from Microsoft for Salesforce The Rumor: Shares of salesforce.com, inc....
TechCrunch  Sep 29  Comment 
 Last week, at Dreamforce, Salesforce.com’s enormous customer conference, Salesforce personnel talked at great length about how everything they did was in the service of the customer. If it wasn’t about the customer — like ERP — they...
TechCrunch  Sep 28  Comment 
 Acquia, the eight-year-old service provider that helps businesses tailor their websites to Internet browsers and mobile application users, has raised $55 million in a late-stage round of financing. The move comes as the battle to manage the...
Yahoo  Sep 28  Comment 
Salesforce CEO Marc Benioff tells CNBC that major developments in tech could change how companies in every sector should operate.
TechCrunch  Sep 26  Comment 
 At this very moment, the IT department at a typical enterprise is staring at a mind-numbing list of IT project requests from employees and business units — ranging from building a custom mobile app for warehouse operations to integrating...
Forbes  Sep 25  Comment 
Over the last decade, marketing automation technology, such as Hubspot, Marketo, ExactTarget, now part of Salesforce.com, has completely transformed how companies communicate with customers and prospects. Marketers can now reach their customers at...
TechCrunch  Sep 25  Comment 
 One thing was clear at Dreamforce last week, Salesforce’s enormous customer conference — something that has become apparent to anyone paying attention. It’s becoming a data-driven world. We are awash in data, but the problem is figuring...


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]


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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