QUOTE AND NEWS
Wall Street Journal  Jul 23  Comment 
Salesforce.com Inc. Chief Executive Marc Benioff, who lost a bidding war for LinkedIn Corp. to Microsoft Corp., told the social networking company that he would have made a stronger bid had it continued talks with him after its call for final...
Forbes  Jul 21  Comment 
What role should businesses play in social change? In political advocacy? Is it okay for corporations to take a public stand, as Salesforce has and does, on issues like equal pay for women or LGBTQ rights?
TechCrunch  Jul 21  Comment 
 Brandcast, a startup allowing marketers and designers build mobile-friendly websites without having to write code, announced today that it has raised $13.9 million in Series B funding. The round was led by Shasta Ventures with participation from...
Financial Times  Jul 19  Comment 
A look at the two companies’ business models reveals something in common
TechCrunch  Jul 19  Comment 
 There are lots of things you could say about Marc Benioff. Like, that he cofounded and runs Salesforce, one of the world’s biggest cloud computing companies. Or that he’s also a book author. Or that, last Halloween, he dressed like a...
Benzinga  Jul 18  Comment 
Argus Director of Research, Jim Kelleher, adjusted the Portfolio Selector Focus List and picked up salesforce.com, inc. (NYSE: CRM) for the month of July. As the company is a cloud-based SaaS CRM firm, it expanded itself into different...
TechCrunch  Jul 11  Comment 
 Built.io’s Flow is a drag-and-drop tool for building enterprise integrations. It’s a bit of a mix of Yahoo Pipes (R.I.P.) and IFTTT for connecting services like Salesforce and Marketo to help automate the sales process in an organization,...
newratings.com  Jul 11  Comment 
WASHINGTON (dpa-AFX) - Salesforce (CRM) announced the successful completion of its tender offer for all of the outstanding shares of common stock of Demandware, Inc. at a price of $75.00 per share, net to the seller in cash, without interest...




RELATED WIKI ARTICLES
 

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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