Seeking Alpha
Hedge fund manager, long/short equity, event-driven
Profile| Send Message|
( followers)  

"Pacific Crest said it is skeptical about reports that Veeva (NYSE:VEEV) lost a client to Salesforce.com (NYSE:CRM) given they have a non-compete and Salesforce.com has strong interest in the success of Veeva's platform."

This is comical!

From the SEC filed Veeva/SFDC re-seller agreement, material parts in bold.

1.1 Resale Rights. SFDC hereby grants to Reseller a nonexclusive, nontransferable (except as set forth in Section 16.10), non-sublicenseable (except to Affiliates of Reseller) right to market, demonstrate, resell and support OEM Services in connection with the Reseller Application and as part of the Combined Solution, subject to all of the terms and conditions of this Agreement, including the following

Gross Competition. Neither SFDC nor its Affiliates shall position or promote any third-party Force.com application that would be competitive to the Reseller Application as provided in Section 3.1 or in a substantially similar manner; provided, however, the foregoing shall not prohibit third parties (excluding SFDC Affiliates) from creating and posting any content on SFDC's AppExchange or on their marketing materials without SFDC's consent. Neither SFDC nor its Affiliates will designate any other company with an ISV alliance status that is equal to or greater than "Preferred" or "Premiere" for the Target Market. With the exception of equity investments in [*] (provided that such exception shall not limit any of SFDC's or its Affiliates' obligations under the other sentences of this Section 4), SFDC will not make an equity investment in or buy another company for the purpose of developing or promoting a Force.com application offering that would be directly competitive to the Reseller Application in the Target Market. In addition, neither SFDC nor its Affiliates will develop or promote Target Market-specific software applications to compete with the Reseller Application in the Target Market; provided, however, the foregoing portion of this sentence shall not restrict an SFDC Customer's ability (or SFDC's or its Affiliates' ability, if on behalf of a specific SFDC Customer) to customize or configure the SFDC Service in any way.

Skeptical? Have you heard of Google or EDGAR?

What's amazing is this 'defense' is coming from an analyst whose firm underwrote the IPO. He can't pickup the phone and confirm this information?

We can tell you with 100% certainty this is a loss (not that the 2000 or so seats was a big focus for us). The timelines are also highly verifiable for anyone who wants to spend the time doing the digging. We do not publish anything without extensively verifying it with multiple sources. Roche global ex-North America has been in the process of deploying SFDC since 2011(the presentation walking anyone who believes in FIELD RESEARCH and DUE DILLIGENCE is publicly available online and linked to in our piece) . Genentech was on Veeva/Salesforce and just recently ported over to a custom solution built on force.com.

But just to show how ridiculous this note is. A fund that was long Veeva reached out to us today and said they CONFIRMED THIS LOSS WITH VEEVA IR AFTER CONDUCTING THEIR OWN DUE DILLIGENCE.

On a side note, this is just further confirmation of how much work some of these Veeva sell-side analysts perform before disseminating investment advice.

Where oh where is the accountability........

Source: Veeva: Analyst Negligence Has Gotten Obscene