Salesforce.com Separating From Pack

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Forbes.com, Summer, 2011. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Reporting from Dreamforce 2011, the Salesforce.com (NASDAQ: CRM) user conference that began on August 28 and runs through September 2, Canaccord Genuity software analyst Richard Davis said that announcements and presentations by Salesforce support his assertion, “That the firm is decisively distancing itself from the competition.”

Reporting from Dreamforce 2011, the Salesforce.com (NASDAQ: CRM) user conference that began on August 28 and runs through September 2, Canaccord Genuity software analyst Richard Davis said that announcements and presentations by Salesforce support his assertion, “That the firm is decisively distancing itself from the competition.”

Davis believes enterprise technology is changing from cloud to v2.0 cloud. He says, “This new era is one step beyond cloud and two iterations past client/server. This is good news for Salesforce and bad news for legacy software firms.”

Mr. Davis added, “Salesforce remains our favorite large-cap growth stock. We believe the firm’s shift toward what CRM calls the Social Enterprise gives the company a significantly larger addressable market by multiples of billions, while putting the firm two iterations ahead of legacy vendors such as SAP, large portions of Oracle (NASDAQ: ORCL), privately held Infor, and a dozen smaller ERP vendors.