Market Overview

Salesforce: A 'Launching Pad For Other Companies'

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salesforce.com, inc. (NYSE: CRM) will host its annual customer conference called Dreamforce, which will not only puts its own technology in the spotlight but also show how it plays a vital role in helping other companies achieve success.

According to CNBC, two of the event's top sponsors will share their message. Apttus, a company that helps businesses draw up price quotes and contracts, is on pace to generate $150 million in revenue this year and $250 million in revenue next year.

FinancialForce, a company that sells enterprise resource planning apps to help customers manage their supply chain, is expected to approach a $100 million revenue run rate by the end of the year.

These two companies share something in common. They were among the first to offer business applications through Salesforce's AppExchange online marketplace which was launched 10 years ago.

On its end, Salesforce collects a fee from the companies whose paid apps are installed by customers and in return it offers the necessary infrastructure to run a cloud-based business.

The Vetr crowd appears to be a supporter of Salesforce's business model. Nearly 90 percent of the crowd's ratings are bullish and the crowd sourced price target of $83.78 implies an upside just shy of 20 percent.

The agreement between Salesforce and apps that operate on its marketplace also implies the startups don't have to spend millions of dollars and invest in the cloud themselves.

"I have worked on other ecosystems where it's much more of a dog-eat-dog world — Salesforce is more fun," FinancialForce's CEO Jeremy Roche was quoted as saying.

 

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Posted-In: Apttus cloud Cloud Applications CNBC Dreamforce FinancialForceTech Media