Wednesday, November 17, 2004
CRM's on-demand model continues to gain traction and is becoming more mainstream. Revenues grew 82% from last year, and 14% from last quarter, that kind of profitable growth is tough to come by these days. Company is on a path to end vertically focused applications which would mean that smaller niche CRM providers are in trouble. CRM is also changing the software model and in their opinon ending software as we know it today. This means applications getting pushed to consumers/enterprises will be the future. CRM model threatens the enterprise software industry as we know it today. Seems like we are heading back to the thin-client computing. So where does this leave INTC and AMD who want to make our desktops more powerful? I certainly don't have a clear answer but one thing is clear about CRM: its not your daddy's SEBL. One thing to worry about in the near-term is the lock-up from IPO expires on December 19th and 4-5x the current float will be free to trade on December 20th. I am not suggesting all who get the shares will sell on that day but its certainly creates a lot of overhang especially given relatively rich valuation.