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Pay Attention To Salesforce (CRM) And On-Demand Applications
By: Ockham Research   Tuesday, October 06, 2009 11:31 AM

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On Monday's Mad Money, Cramer interviewed the CEO of Salesforce.com (CRM).  In his introduction to the interview, Cramer attempted to explain what it is that Salesforce actually does.  The world of cloud computing and Software as a Service (SAAS) applications is still very new to many investors.  At Ockham, we recently moved our critical IT infrastructure to "the cloud" and are amazed by the potential and scalability of such a business.  The opinion around our office is that these sort of solutions are undoubtedly the way of the future.  Cramer did a pretty good job of explaining why he things Salesforce is an exciting opportunity.

"…For lack of a better word, they are simply bankable. Guys who have made us a lot of money in the past, who we'd be fools not to pay attention to when it comes to the future. Mark Benioff, CEO of Salesforce.com, CRM for all you home gamers, and perhaps the most bankable CEO I ever have on the show. Salesforce, which pioneered the software as a service business, where companies subscribe to get their enterprise software over the Internet, new model's a turbo-charged tech stock that still I believe has plenty of juice.

The last time we interviewed mark was on August 20th, after Salesforce.com had reported a truly blowout guide-up quarter. The stock was at $46.18. It's up 22% since then. That's what bankable means. I call that an incredible run. Especially when you consider a lot of tech stocks ran out of octane during that period. And I think Salesforce has a terrific future ahead. I think we're in early thanks to some of its new the company started a new platform called force.com that helps its business customers take advantage of cloud, stay tuned. You'll find out what that really means. It's a huge new market that and delivery of applications that run completely on the Internet, through outsourced network equipment. This saves customers time, saves them money. The platform gets applications delivered to their users faster. And where's the money made? Salesforce customers don't have expensive servers of their own. This new force.com platform will also be designed to work on all other cloud computing servers — providers like Amazon, Google, allowing the company's customers to build their own business applications trust me, this saves a fortune.

They're using only software delivered over the Internet. Basically, if you're a business that wants to design an application that works on Google's cloud computing network, you subscribe to Salesforce.com's platform and they give you all the tools you need.

Salesforce.com also making a push into customer service. The CEO sees it as a billion-dollar opportunity by 2013. He's being conservative.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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