) recently launched Salesforce Wear and the Wear Developer Pack, a
set of tools that allow developers to create apps for companies
spearheading the wearable computing devices phenomenon. Developers
will be leveraging the company's Salesforce1 platform for this
The Salesforce Wear is an app development platform for wearable
devices which has an open-source code and offers several reference
apps, demonstrations and other related documents. Developers can
build applications for smartwatches, smart armbands, smartglasses
and other biometric authenticators.
Touted as the "next phase of the mobile revolution", wearable
computing devices such as Google Glass, Pebble smartwatch and
Samsung Gear smartwatch have made many a headline. Salesforce has
), Fitbit as well as Philips to further its wearables
It is worth mentioning that IHS expects approximately 50 million
wearable units to be sold in 2014. The research firm also expects
the sale of wearable devices to reach 180 million units by
With the current initiative, Salesforce will have a first
mover's advantage as the wearable devices technology is still in
its nascent stages. Moreover, the strong growth projections
indicate that many people will be using wearable devices (for
personal data monitoring, computing, Internet connectivity or
otherwise). This data could be useful for companies.
Being an enterprise platform provider, Salesforce's initiative
views the wearable phenomenon from the enterprise point of view and
encourages developers to build applications useful for enterprises.
This ultimately will speed up the enterprise adoption rate of
We consider the rapid adoption of the Salesforce1 Platform
(approximately 1.5 million users) to bode well for the company's
new initiative. Overall, the company's diverse cloud offerings and
strong spending on digital marketing remain the catalysts.
Moreover, strategic acquisitions and the resultant synergies are
expected to benefit in the long run.
Although, the company is growing steadily in the cloud market,
growth prospects have been rationalized to a considerable extent
due to intensifying competition from
International Business Machines
). Moreover, continued weakness in Europe, currency headwinds and
increased investments in research & development will keep
margins under pressure.
Currently, Salesforce has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
SALESFORCE.COM (CRM): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis Report
SAP AG ADR (SAP): Free Stock Analysis Report
ARM HOLDNGS ADR (ARMH): Free Stock Analysis
To read this article on Zacks.com click here.