QUOTE AND NEWS
Benzinga  6 hrs ago  Comment 
Bloomberg Gadfly's Shira Ovide stated the obvious: People enjoy following a messy story, especially when it comes to Wall Street. The latest instance of a messy situation: salesforce.com, inc. (NYSE: CRM) losing out to Microsoft Corporation...
Benzinga  8 hrs ago  Comment 
Although investor sentiment for salesforce.com, inc. (NYSE: CRM) has “weakened significantly in recent months,” the company’s growth is expected to reaccelerate in the back half of FY17, Barclays’ Raimo Lenschow said in a report. He...
Forbes  8 hrs ago  Comment 
Speculation is rampant about Twitter potentially being acquired in the upcoming weeks, leading to the company’s stock rising over 20% in the last four trading days. Its prospective buyers currently include Salesforce , Disney and Alphabet . News...
MarketWatch  10 hrs ago  Comment 
Salesforce.com Inc. says it would press regulators in the U.S. and Europe to block Microsoft Corp.’s $26.2 billion acquisition of LinkedIn Corp., arguing the deal would hurt competition by giving its business-software rival too much control...
Forbes  Sep 30  Comment 
The University of Southern California now has a second tech billionaire contributing to its new cancer treatment center -- and he used to work for the first billionaire donor.
Reuters  Sep 30  Comment 
U.S. software company Salesforce called on EU regulators on Thursday to investigate antitrust issues related to Microsoft's $26 billion bid for social network LinkedIn.
Reuters  Sep 29  Comment 
U.S. software company Salesforce called on EU regulators on Thursday to investigate antitrust issues related to Microsoft's $26 billion bid for social network LinkedIn.
New York Times  Sep 29  Comment 
Salesforce, a San Francisco tech company, is said to have questioned whether Microsoft’s takeover of LinkedIn might hinder consumer choice and access to data.
Forbes  Sep 29  Comment 
The retail industry has historically relied on creating demand, or meeting demand created by the fashion leaders in Paris and Milan, rather than predicting it.
Benzinga  Sep 28  Comment 
On CNBC's Fast Money Halftime Report, Pete Najarian spoke about options trading volume in salesforce.com, inc. (NYSE: CRM). He said the stock started to trade lower on Friday on the news of a potential acquisition of Twitter Inc (NYSE: TWTR), but...




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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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