Business Model of Salesforce.com

ADVANCE FINANCIAL
ACCOUNTING

Advance Financial Accounting
Contents
Answer1................................................................................................................... 2
Answer2................................................................................................................... 3
Answer3................................................................................................................... 4
References................................................................................................................ 6
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Advance Financial Accounting
Answer1.
Business Model of Salesforce.com
Ten years back when the idea of cloud was almost abstract and unwieldy then it was
Salesforce who made their vision to take all the software to cloud. This idea of the company
was really innovative and revolutionary at the same time.
Salesforce.com is primarily indulged in providing enterprise software. This enterprise
software is distributed through cloud keeping customer relationship management (CRM) in
mind. In the year 2000, Salesforce.com came up with the very first Customer Relationship
Management (CRM) solution.
Back in the year 2000, when technology was not so advanced Salesforce.com managed to
offer a type of service which could be easily installed, configured and integrate with different
platforms and enterprise applications. Earlier, it was difficult to run the CRM services
because it involved a high upfront cost. Along with the high upfront cost, it involved a very
high expensive services which were really tough to run and continue. All these difficulties
were abolished by Salesforce.com.
Now those CRM services are being delivered by Salesforce.com in the following ways:
1. Using highly recognised Internet browsers
2. Using top mobile devices
3. Direct sales
4. Through partners but indirectly
Salesforce.com followed multitenancy technology architecture and subscription service
business model. Now, customers can pay the amount in instalments over the period of
contract instead of paying high upfront cost in traditional software. It offers cloud
applications which helps the businesses to gain access to variety of applications services.
These are delivered by Salesforce to the businesses over the Internet on as-needed basis.
These applications either require little or no implementation services.
Key Success Factors and Financial Performance of Salesforce.com
The key success factors of Salesforce.com include:
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