Perki

Setting the Record Straight on SaaS

Forester's projections over over 2 years out have proven wildly in-accurate. So much so that some purchase the research and bet against them as a successful investment strategy.

In other words, Forrester Research projections are a good way to tell what is NOT going to happen.

Salesforce.com Shows Strength

Salesforce has a long lag for revenue contraction. Client companies sign a 12 month contract, so even after you layoff half of your sales staff, you still pay the full amount until your contract expires.

The effects of the massive layoffs in the last 90 days will be hitting Salesforce's revenue next year. Additionally, with the high fixed costs of SaaS infrastructure, revenue reduction has a disproportional impact on gross margins.

Given the 93% institutional ownership and the herd mentality of same, when Salesforce's price does fall it will be fast and furious.