Stifel, Nicolaus & Co., Inc. Managing Director Tom Roderick says that when looking at the big trends driving enterprise software and adoption within the enterprise, there is a wave of disruptive pressure coming from cloud companies like Salesforce.com, Inc. (CRM).
“Cloud-centric companies like Salesforce.com, they used to be seen as smaller departmental types of solutions or solutions that are emphasized for the small or midsized business. That has all changed over the course of the last four, five years,” Roderick says. “You’re seeing big, big, seven- and eight- and sometimes even nine-figure investments into cloud-based technologies.”
Tom Roderick
Roderick says what is new is the willingness to rip out a heavy investment in legacy systems and move forward with leading cloud vendors as the next platforms of choice.
“These are not just investments and applications around the fringes. These are investments and platforms and systems that are replacing core functions,” he says. “You’re seeing that with Salesforce.com for a number of front office software technologies.”
Salesforce is still Roderick’s number one SaaS name of choice.
“I know it’s a widely beloved and widely held stock, but we think it’s still just right on the cusp of becoming an even greater disruptor in the enterprise with more and more solutions that are being adopted from not just the Sales Cloud offering that they built, but also with their Marketing Cloud, their Service Cloud and even their PaaS platform offering known as force.com. We’re starting to see the larger and larger enterprises make even greater investments toward cloud-based technology, and Salesforce is becoming the aggregator and consolidator of that power,” Roderick says.
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