Get to know Salesforce.com

As the de facto software for enterprise communications, CRM continues to climb, and there's no reason to think it will stop.

By Jim Cramer Aug 23, 2010 9:07AM

jim cramerBy Jim Cramer, TheStreet

 

Is Salesforce.com (CRM) the Apple (AAPL) to Microsoft (MSFT) and Oracle (ORCL)?

 

The more I think about it, the more I am realizing that Salesforce.com has become the de facto standard for all software, the way for corporations to free themselves of how they communicate and to free themselves from desktop communications.

 

I have been an unabashed proselytizer for Salesforce.com for about 80 points on its share price, thinking that its cloud computing model would change forever the way sales forces work. We all know that sales force accountability is one of the great weaknesses of business, and CRM enables managers to see what's really going on through sales software that's delivered in a cheaper, easier way, through the Web.

 

Last week's blowout quarter wasn't about sales software. It was about communications up and down through the organization. It was about Facebook for the enterprise, called Chatter, and it is the quick and easy way for managements to keep track of and stay in touch with everyone, just like Facebook.

I don't want to simplify all of the things that Salesforce.com does. You can see the myriad interviews with Mark Benioff on CNBC.com and recognize, as I do, that this man should join Alan Mulally and Steve Jobs as one of the great CEOs in the U.S. More important, though, is a recognition that Benioff came out of Oracle determined to do it a better way.

 

He's created it.

 

I think the stock can go much higher as investors recognize that a $14 billion valuation is too little. Oracle or Microsoft should have bought or should buy these guys if they want growth. Before Benioff destroys them.

 

Anything is possible with Benioff. He will figure out a way to blunt any advances that Oracle or Microsoft can make, because his product is superior, his company is superior and he is superior. (Microsoft owns and publishes MSN Money.)

 

Salesforce.com is the "S" in CANDIES, my high-growth group of stocks that also include Chipotle (CMG), Apple, Netflix (NFLX), Deckers (DECK), Intuitive Surgical (ISRG) and Express Scripts (ESRX).

 

In many ways it is the best of the bunch. Last week's earnings report is testimony that this one's going much higher. There's too much wealth being created here.

 

Learn the story. Get comfortable. Understand why people like it up 12 points. And of course hope it comes in a little in the next big market sell-off so you can buy some.

 

At the time of publication, Cramer was long AAPL.

 

Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.

 

Click here to learn how to follow Jim Cramer’s trades for his Charitable Trust.

 

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