Market Overview

Oracle Versus Salesforce: Trip Chowdhry Says Salesforce's Woes Are 'Fixable'

Oracle Versus Salesforce: Trip Chowdhry Says Salesforce's Woes Are 'Fixable'

How does, inc. (NYSE: CRM)'s business stack up to the much larger Oracle Corporation (NYSE: ORCL)?

According to Global Equities Research's Trip Chowdhry, salesforce is in an "uncomfortable position" compared to its peer, as it is "technology light and marketing heavy" and faces near to mid-term challenges — although these are "fixable."

The Situation

Salesforce uses branded vendors to power its software-as-a-service (SaaS) offering, Chowdhry noted. These include storage providers (EMC and NetApp), server provider (HP and Sun/Oracle), network provider (Cisco Systems, Inc. (NASDAQ: CSCO)) and database provider (Oracle.)

Salesforce has to pay money to each of these vendors, "and it is not cheap."

Moreover, salesforce's technology stack was "influenced by marketing" in the past, but today its technology is outdated. Also, salesforce's platform was built at a time when, Inc. (NASDAQ: AMZN)'s AWS and Microsoft Corporation (NASDAQ: MSFT)'s Azure never existed, so it uses Oracle's database merely for historical reasons.

Related Link: Salesforce Makes Its Tenth Purchase In 12 Months With BeyondCore Deal

As such, salesforce's SaaS stack is "expensive," especially compared to Oracle, which uses "most of its own technology" to power its SaaS. Specifically, Oracle's storage, server, network (also provided by Juniper) and database is provided by Oracle itself.

However, Chowdhry added that Oracle's infrastructure cost is "still too expensive when compared" to Supercloud providers AWS and Azure, but still cheaper than Salesforce's infrastructure.

How Salesforce's Problems Can Be Fixed

According to Chowdhry, salesforce's woes can be fixed using a three-step approach. First, salesforce can replace Oracle's database with any opensource database. Second, salesforce can replace HP, Dell and Sun with a custom whit box. Finally, salesforce can replace Cisco's networking with a custom network card that is similar to AWS ENA — Elastic Network Adapter.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for CRM

Feb 2021MizuhoMaintainsBuy
Jan 2021Loop CapitalUpgradesSellHold
Jan 2021Goldman SachsInitiates Coverage OnBuy

View More Analyst Ratings for CRM
View the Latest Analyst Ratings


Related Articles (ORCL + CRM)

View Comments and Join the Discussion!

Posted-In: Cisco DELL emc Global Equities Research HPAnalyst Color Analyst Ratings Tech Best of Benzinga

Latest Ratings

AVXLCantor FitzgeraldReiterates25.0
FIVNWells FargoMaintains210.0
TREXDA DavidsonMaintains95.0
MTBRBC CapitalMaintains166.0
PANWDA DavidsonMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at