Is the Salesforce.com juggernaut faltering?

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Salesforece.com and the $1B barrier...

The $1B barrier appears to be not only a problem for software companies, it also created a hiccup for many mail order companies as well (Insight, Multiple Zones, PC Mall, etc). The one thing these companies all have in common with Salesforce is that they each sold to many small companies and rode the backs of small companies to get to the $1B mark. A resonable conclusion might be that once a company hits $1B in the small to medium enterprise segment they need to move into another customer segment in order to continue their rapid growth rates. Salesforce is doing this. Like the mail order companies before them, they are now chasing the enterprise market and winning a few deals. They may not be able to continue the same 40%+ growth rate, but they can still have significant growth. The SaaS model remains the best new delivery system, but Salesforce, like others, will need to conquer new market segments to continue growing. A little caution is makes sense.
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Posted by: igilyeat   Posted on: 08/21/08 You are currently: a Guest | Members login | Terms of Use

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