Morningstar Rating

Stock Research and Analysis

by Rick Summer, CFA, CPA

Bulls Say

Customers looking to cut IT costs often look to Salesforce.com as the leader in the on-demand delivery of CRM software.
As the largest provider of CRM software delivered in the public cloud, Salesforce.com has a cheaper cost of delivery and more mature product than larger competitors such as Oracle and SAP.
High levels of brand awareness increase the likelihood that Salesforce.com can successfully move into adjacent markets such as marketing automation. Read more 

Bears Say

Many customers are reluctant to put all of their information in the public cloud due to security and compliance concerns. This reluctance may favor hybrid cloud solutions from competitors like Oracle.
As the company continues aggressively acquiring new technology, returns on capital will suffer if the firm overpays.
The company's hosted platform is managed by third-party companies, making Salesforce.com's core business performance dependent on factors beyond its immediate control. Read more 

Management

Cofounder Marc Benioff has served as CEO since 2001 and chairman of the board since the company's founding in 1999. Previously, Benioff worked in sales, marketing, and product development roles for 13 years at Oracle. As of the last proxy statement,  Read more 

Profile

Salesforce.com is the leading provider of hosted customer relationship management software services. It is expanding the breadth of its services and aims to be a multi-application,  Read more 

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