Salesforce's 3 divisions are expected to make $17 billion for full-year 2020 (ended Jan 2020)(1) Cloud Based CRM $11.9 billion (70.2%), (2) Cloud Software $ 4 billion (23.5%), and
(3) Consulting and Others $ 1.1 billion (6.4%).
Salesforce Business Model
What does Salesforce offer:
Salesforce is a global leader in customer relationship management (“CRM”) technology that helps companies in their relationships and interactions with customers. Salesforce was founded in 1999, Its products help companies to connect with their customers in multiple ways through technologies like cloud, mobile, social, Internet of Things (“IoT”), and artificial intelligence (“AI”). Their service offerings include Sales Cloud, Service Cloud, Marketing and Commerce Cloud and Salesforce Platform.
Has 2 major Operating Segments:Subscription and Support
: This segment comprises of subscription fees from customers accessing the enterprise cloud computing services (collectively, "Cloud Services"), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees.Professional Fees and Others
: This segment includes related professional services such as process mapping, project management, implementation services and other revenue. “Other revenue” consists primarily of training fees.
What Are The Alternatives?
Major competitors include SAP, Oracle, Microsoft, IBM, and other companies offering similar solutions or similar results with different solutions.
What Is The Basis of Competition?
The market is highly competitive, rapidly evolving and fragmented, and subject to changing technology and low barriers to entry, shifting customer needs and frequent introductions of new products and services.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.