QUOTE AND NEWS
Motley Fool  Apr 11  Comment 
The stock is undeniably expensive. Here's why that shouldn't stop you.
Benzinga  Apr 9  Comment 
Despite entertaining a 27 million user base, 40 percent of which is international, Crunchbase CEO Jager McConnell isn’t satisfied with his reach. Over the next year, he’ll be leading the online data company to roll out a number of new products...
Clusterstock  Apr 7  Comment 
On Friday morning, Okta crossed over from the startup world into the big-leagues and became a public company. Its stock market debut went well, with shares pricing at $17 and opening up 40% at $23.56. It's been an exciting journey for Todd...
Benzinga  Apr 5  Comment 
Salesforce.com, inc. (NYSE: CRM) shares are trading higher by $2.70 at $85.67 in Wednesday's session. Like many times in the past, the company has been rumored as a takeover target. The latest rumor Wednesday morning has been attributed to...
Benzinga  Apr 4  Comment 
Benzinga recently published an interview with cannabis industry insider Joel Milton. The CEO at Baker Technologies, one of the leading tech platforms for marijuana dispensaries and brands, often dubbed “the salesforce.com, inc. (NYSE: CRM) of...
The Economic Times  Apr 2  Comment 
Elaborating on the impact of the step, she said: "USL had four bottling facilities namely in Hatidah, Salson and Ara and a sizable salesforce. These 500 plus people have lost employment."
TechCrunch  Mar 28  Comment 
 Speaking at the PBWC Conference in San Francisco today, Hillary Clinton called on Silicon Valley to improve diversity and inclusion, particularly by introducing paid parental leave policies. Clinton mentioned Uber and its recent sexual...
Forbes  Mar 28  Comment 
Equality begins when employees are empowered to use their voices to create change. So how can women business leaders use their platforms to create a culture of action and promote equality for all within their workplaces? There are three key things...




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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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