Salesforce.comCRM recently launched a new set of tools that run on low-codes to expedite app building process by companies. Per Outsystems, low-code is a faster way of designing and developing software with minimal hand-coding.
The new set of tools is devised to run on salesforce's Lightning Platform, built to avoid obstructions like developer gap and IT backlogs plus deploy next-generation cloud applications.
The new set of tools has been built on the company's Software-as-a-Service (SaaS)-based application, Force.com, which allows its customers to develop personalized applications using languages of their own choice and convenience.
Per management, Lightning Platform - integral to the salesforce Platform offering - gained wide adoption as it has been used to develop more than 220,000 apps.
Moreover, per a recent study by the International Data Corporation (IDC), salesforce enterprise clients using the Lightning Platform witnessed an ROI of 545% over the last five years. Moreover, the market research firm stated that enhanced productivity of the platform users led to revenue benefits of about $8.8 million per company surveyed.
The salesforce Platform as a whole has seen impressive growth over the years. In the company's last reported quarter, this service grew 34% year over year. This upside was driven by a continued adoption of platforms like Heroku and the Lightning.
Salesforce.com Inc Revenue (TTM)
Cloud Computing Spurs Growth Opportunity
Salesforce's strategy of frequent product launches and cloud services are helping it expand its clientele, thereby driving the top-line growth in turn.
The rapid adoption of the SaaS-based salesforce platform demonstrates solid demand for the company's cloud-based solutions. Moreover, higher enterprise spending on cloud computing is a key catalyst.
According to IDC estimates, spending on public cloud services and infrastructure will reach $277 billion by 2021. Furthermore, per Gartner, the worldwide CRM software market, which generated revenues of $39.5 billion in 2017, is expected to grow by 16% in 2018.
Cloud computing market's attractive growth prospects are inciting new competition. Although salesforce is undisputedly the dominant name in CRM services, the growing contest from Microsoft MSFT is a major concern. Salesforce also faces stiff rivalry from Oracle ORCL in the cloud-based CRM market.
Oracle has strengthened its cloud position via various strategic acquisitions. Microsoft has also added several key companies like LinkedIn to its portfolio to boost its Dynamic CRM platform. Additionally, Microsoft's special pricing offers for its Dynamics CRM Online service is helping it lure salesforce's customers.
Nonetheless, with its SaaS-based CRM and social enterprise applications, the company is well-positioned to tackle the escalating competition. Salesforce's diverse cloud offerings and a strong spending on digital marketing keep it ahead in the CRM game.
Zacks Rank & Key Pick
Salesforce currently sports a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the broader Computer and Technology sector is Fortinet, Inc. FTNT , also carrying a Zacks Rank of 1. The stock has a long-term earnings growth rate of 16.8%. You can see the complete list of today's Zacks #1 Rank stocks here .
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>
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