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Salesforce.com Is Challenging for Software Supremacy

We believe the market underappreciates the opportunity the firm has with its current product set.

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Since pioneering the software-as-a-service movement in the late 1990s,  Salesforce.com (CRM) has evolved into one of the world’s true software powerhouses. The firm boasts several cloud products that address large enterprise markets, creating substantial switching costs for its customers. As such, it has established itself as the runaway leader in the pure-play SaaS market.

Salesforce has created a product portfolio that spans all of the key verticals in customer relationship management, delivered in a multitenant, public cloud environment that allows for rapid deployments, instant updates, and lower total cost of ownership for customers. We believe enterprises will increasingly turn to cloud computing to eliminate costly IT infrastructure and maintenance costs, creating a long runway for growth in each of Salesforce’s product verticals.

Rodney Nelson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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