Salesforce.com Needs Bigger Cloud Computing Presence
Updated · Feb 16, 2011
Cloud computing presents a long-term opportunity for Salesforce (NYSE: CRM) as IT departments leverage cloud-based software instead of investing in additional hardware and on-premise software. According to this report on Forbes, Salesforce.com’s main business is to sell cloud-based CRM software, but overall the company needs a bigger piece of the cloud computing pie to justify a $140 price tag.
“Other than cloud-based CRM software, Salesforce.com offers cloud-based software products like Force.com, AppExchange and Database.com. Cloud-based CRM software and other cloud-based software constitutes around 63% and 26% of our $128 price estimate for Salesforce.com stock.”