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THIS MONTH'S ISSUE
7 Questions For Salesforce.com CEO Marc Benioff From A Prospective Shareholder
By Galileo Russell
Dear Mr. Benioff,
A new tech-bubble, hidden behind big data and social media, seems to have formed around the mystical ‘cloud computing’ field. Your company Salesforce.com (CRM), is known as “the enterprise cloud computing leader,” and thus has benefited from the market’s perception of your industry. After doing my initial due diligence, I’m left with 7 questions that I feel are relevant to the long term health of your company.
1. Why Are Gross Margins Declining At An Accelerating Pace?
Gross margin is a crucial indicator of how well a company’s business model is holding up, and how much the company is profiting without the inclusion of operating expenses. Salesforce (like most of its cloud peers) has a very high gross margin when compared to other companies, because of its Software as a Subscription (SaaS) business model.
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