How a $150 Market Price Could Be Justified

CRM software of that sort offered by Salesforce helps companies better manage customer data and information, which helps those companies to better serve their clients and increase sales. We estimate that Salesforce’s core CRM software business accounts for 63% of the Trefis price estimate for Salesforce’s stock.

In recent years, Salesforce has been branching out from delivering only CRM software through the cloud to delivering other cloud-based software services. The broader cloud computing market presents a long-term possibility for Salesforce as IT departments leverage cloud-based software instead of investing in additional hardware and on-premise software.

The cloud computing market consists of Software as a Service, Platform as a Service and Infrastructure as a Service. Salesforce offers Force.com, a development platform and infrastructure for corporate IT departments and independent developers to build business applications. It provides an environment to develop custom applications beyond CRM applications.

The cloud-computing market stands at about $65 billion

We estimate that the cloud-computing market stands at about $65 billion and that this could grow to more than $300 billion by the end of our forecast period. We believe that Salesforce will have a small however growing share in this very large market as it continues to launch new cloud-based software services. By modifying the forecast below, you can see how there could be a $9 upside to the Trefis price estimate if Salesforce were to capture 1% share in the broader cloud-computing market by the end of our forecast period.