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The Internet of Things could put some oomph back into Salesforce.com ’s ( CRM ) revenue growth, though a Morgan Stanley report still sees a compound annual growth rate of 25% through fiscal 2019. Salesforce is the No. 1 maker of CRM, or customer relationship management software. It pioneered software-as-a-service, selling online subscriptions to its products that customers bought as needed. Saleforce’s revenue growth slowed to 24% in fiscal 2016 ended Jan. 31, after rising from 32% to 37% in fiscal 2012 through fiscal 2015. Keith Weiss, a Morgan Stanley analyst, forecasts 25% CAGR revenue growth for Salesforce.com over the next three years. “The rapid growth of the Internet of Things and connected devices has the potential to bring transformative change to the customer service industry,” said Weiss in a research report. “We see cloud-based customer service applications as one of the most likely (and first) areas to benefit from the IoT trend.” The Internet of Things refers to wireless technology that connects industrial, medical, automotive and consumer devices to the Internet. “Despite a leading market share in customer service solutions, we believe meaningful opportunities remain for Salesforce.com to expand its wallet share among existing customers and target adjacent opportunities …,” Weiss wrote. The San Francisco-based company has steadily expanded its focus from mostly small businesses to large enterprises. Salesforce.com stock is down nearly 6% in 2016 and was down 1%, near 74, in afternoon trading in the stock market today . But Salesforce stock is up more than 40% since touching a 20-month low below 53 in early February. Salesforce.com has a high IBD Composite Rating of 92 out of a possible 99, though IBD’s Computer Software-Enterprise group ranks just No. 126 out of 197 groups. Scalper1 News
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