> Microsoft just reported sales for Dynamics CRM grew by 30%.
> They are taking market share from salesforce.com.
CRM grew by 38%, and was the market leader to start with. Your math doesn't work out. And what the the actual amount? They say grew 30%, but from what? CRM's growth is likely greater than their entire sales.
There's no doubt that MS can sell cheaply and at a loss. But the number of customers that will accept an inferior product is finite. Pennywise, pound foolish is not a good business practice. We're talking about a product that only recently became usable on a non IE browser.
Microsoft just reported sales for Dynamics CRM grew by 30%.
They are taking market share from salesforce.com.
Microsoft is making money. salesforce.com is losing money... who's giving away their solution?
salesforce.com is not making money, and they have not told anyone how they plan to start making money. Yet people are lining up to pay a huge premium.
Don’t say I don’t understand the cloud, I do. What I don’t understand is why anyone would pay such a huge premium for slaesforce.com. So far the only good answer I have heard is “I love to gamble”. This stock goes all over the place and gamblers believe they will sell right before it implodes.
Microsoft server and customer relationship management software is up, you can argue both ways, but the competition from Microsoft is valid and has a strong hold with its Windows OS and Office advantages.
Be aware that the performance of the technology companies in the Nifty Fifty were, on average, far worse than non-tech stocks among the Fifty in the long run.
Five of the seven Nifty Fifty tech stocks have been unsuccessful in the long run. In the 1970s, each of the following companies had a future that seemed as bright as CRM's seems now. Note that, unlike CRM, all were very profitable when Wall Street fell in love with them.
Here's the list, see for yourself:
I liked yesterday'a headline:
Microsoft wins its biggest cloud computing client
LONDON (Reuters) - Microsoft announced its biggest-ever customer for cloud computing - software that it hosts on behalf of clients and delivers over the Internet - after winning a contract to provide free services to a major Indian education body.
They have to give away their product!
Another headline today talked about suggestions that they give Bing away to Facebook for some shares, since they're losing 2.5B on it this year after years of promotion/building.
MS is not the threat.
3 billion... really, invest by revenue? Microsoft is 65 billion.
57%... really, read the 10-K. Smith recently commented "Salesforce is holding a stern line on invoicing mix—the source of the large billings bump last quarter—with exceptions being routed directly to Smith.” http://blogs.barrons.com/techtraderdaily/2012/03/16/crm-citi-raymond-james-swoon-over-cloudforce-implications/?mod=yahoobarrons
They didn't increase, they changed how they invoice.
Take off the rose colored salesforce.com glasses; get out of the cloud... if you are investing with really money.
Quite right about MSFT, both in the bad initial quality and the eventual improvement - followed by de-support and starting over.
I see CRM as undervalued because i expect profits over a billion $/yr. With a subscrption model, it will sustain for many years.
We both are "speculating" about the future. GLTA