Salesforce.com

What do they do?

Provide Customer Relationship Management (CRM) services in the form of on-demand web applications that are customizable

4% market share – Leading CRM Vendor

Replacing software with on-demand web applications

 

Are they a global company?

         They have over 20 locations in Australasia, Europe, and North America

 

Major Competitors:

         SAP (18% market share)

Oracle Corp. (11% market share)

      

Profits & Losses:

Salesforce.com

2005

2006

2007

Revenue

$176.4 M

$309.9 M

$497.1 M

 Net Income

$.5 M

$28.5 M

$7.3 M

Profit Margin

0.3%

9.2%

1.5%

 

Oracle Corp.

2005

2006

2007

Revenue

$11.8 B

$14.4 B

$18.0 B

 Net Income

$2.9 B

$3.4 B

$4.3 B

Profit Margin

24.6%

23.6%

23.9%

 

Market Cap:

         $5.05 B vs. $103.1 B (Oracle Corp.)

 

Company History:

       Founded in 1999 in a small San Francisco apartment

         ÒThe End of SoftwareÓ revolution begins

         Went from 1,500 customers and 1 language in 2000 to 35,300 customers and 14 languages in 2007

        

Major Products:

       Web Applications with varying versatility and capacity

Pro Services       

Technology:

       Software

 

What gives the company its capability?

On-demand web applications

Customization (Simple & Complex)

Real-time information

         Appexchange

 

Threats:

Security Breaches

Software leaping forward

 

Worth Consulting:

Web Applications vs. Desktop Software