Summary: Salesforce has transformed itself into the Amazon of Cloud Applications.
Scaled solutions to big problems mean fast growth but, so far, lean profits.
The story has enormous power.
The ticker symbol for Salesforce.com (NYSE:CRM) may need some updating as may the company’s name.
Salesforce started as a customer relationship platform dependent on Oracle (NYSE:ORCL) technology. It is becoming a cloud applications company dependent on no one.
The company’s first move beyond Oracle was a partnership with Microsoft (NASDAQ:MSFT) to use its Azure cloud. Now, for its Internet of Things offering, the company is using Amazon.com (NASDAQ:AMZN). That service launches later this year.
At the same time, it’s moving into other cloud verticals. There’s a government cloud for testing and deploying government-related services quickly and at scale. It has gone on an acquisition binge, buying MetaMind and Implisit Insights. It is working to cross-fertilize ideas among its various verticals, building a single Consulting Partner Program.
All these moves are based on a new vision that investors need to understand. We have moved out of the infrastructure and platform eras of cloud, and we’re now in the application era. While rival Oracle buys applications in order to choke customers for bigger profits, Salesforce builds new application Salesforce.comspaces and then seeks customers to fill them.
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SOURCE: Seeking Alpha
Dana Blankenhorn
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