Jutia Group  Apr 16  Comment 
[PR Newswire] - SAN FRANCISCO, April 16, 2015 /PRNewswire/ -- Salesforce (CRM), the Customer Success Platform and world's #1 CRM company, today announced Heroku Elements, a marketplace of innovative, pre-integrated app components, services, and...
Forbes  Apr 14  Comment 
Last week I spoke with CMO of Configure Price Quote (CPQ) platform Apttus, Kamal Ahluwalia. In February this year Apttus completed a $41m series B fund raising led by Salesforce Ventures, the investment arm of Salesforce.com; it’s the most money...
Benzinga  Apr 10  Comment 
In a report published Thursday, Pacific Crest Securities analyst Brendan Barnicle said that the World Tour organized by salesforce.com, inc (NYSE: CRM) in Boston was well attended with about 2,000 people being present. The Salesforce World Tour...
Jutia Group  Apr 10  Comment 
[PR Newswire] - SAN FRANCISCO, April 10, 2015 /PRNewswire/ -- Salesforce (NYSE: CRM), the Customer Success Platform and world's #1 CRM company, today announced that Keith Bigelow, Senior Vice President and General Manager, ... Read more on this. ...
Benzinga  Apr 9  Comment 
JMP Securities raised its estimates for salesforce.com, inc. (NYSE: CRM) Thursday and maintained a Market Outperform rating and $75 price target. After attending the Apttus Accelerate 2015 conference in San Francisco, Analysts Patrick...
Jutia Group  Apr 9  Comment 
[PR Newswire] - SAN FRANCISCO, April 9, 2015 /PRNewswire/ -- Salesforce (CRM), the Customer Success Platform and world's #1 CRM company, today launched the next generation of Sales Cloud B2B marketing automation. Powered by Salesforce Pardot, the...
Benzinga  Apr 7  Comment 
Deutsche Bank analysts hosted a Bay Area investor bus tour last week and met with a number of cloud computing companies. One of the stops was at salesforce.com, inc (NYSE: CRM). The analysts maintained a Buy rating on the company, with a price...
Jutia Group  Apr 7  Comment 
[Benzinga] - Oppenheimer issued a report on salesforce.com, Inc. (NYSE: CRM ) after meeting with CFO Mark Hawkins. Oppenheimer reiterated its Outperform rating and issued an $80 price target. Analysts Brian Schwartz ... Read more on this. ...


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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