Salesforce.com CEO Marc Benioff said: “I’m delighted to announce that we expect to deliver our first $8 billion year during our fiscal year 2017, which puts us well on the path to reach $10 billion faster than any other enterprise software company.”
Oracle Chairman Larry Ellison recently said that Oracle would sell between 50 percent more and double the amount of new cloud business than Salesforce.com plans to sell in their current fiscal year.
SAP CEO Bill McDermott recently said that its cloud solutions for workforce engagement are best in class and its omni-channel customer experience solutions are growing faster than best of breed competitors.
Salesforce bets on Cloud
Salesforce is expecting revenue of $1.792 billion (+24 percent) in Q4 FY16, $6.65 billion (+24 percent) in fiscal 2016 and $8.1 billion (+22 percent) in fiscal year 2017.
The leading CRM vendor said its revenue rose 24 percent to $1.71 billion in its fiscal third quarter ended October 31, 2015, while reporting a loss of $25.2 million.
Salesforce generated $1.6 billion (+24 percent) from subscription and support revenues and $116 million (+22 percent) from professional services and others in Q3.
Salesforce generated $688.7 million from Sales Cloud, $469.5 million from Service Cloud, $269.1 million from App Cloud and $169 million from Marketing Cloud as part of Subscription and support revenue by cloud service offering.
It generated 73 percent revenue from Americas, 18 percent from Europe and 9 percent from Asia Pacific.
Salesforce.com said its deferred revenue rose 28 percent to $2.85 billion, while unbilled deferred revenue grew 24 percent to $6.7 billion. These are the two important indicators for achieving the landmark $10 billion revenue in coming years.
Oracle revenue in Q1 fiscal 2016 fell 2 percent to $8.4 billion. Oracle is the world’s second largest SaaS and PaaS company. It is closing in on number one. Oracle Cloud software as a service (SaaS) and platform as a service (PaaS) revenues rose 34 percent to $451 million. Cloud infrastructure as a service (IaaS) revenues increased 16 percent to $160 million. Cloud plus On-Premise Software revenues of Oracle fell 2 percent to $6.5 billion, while total Cloud revenues of Oracle rose 29 percent to $611 million.
Enterprise software major SAP said its revenue increased 17 percent to €4.98 billion or $5.33 billion in the third quarter ended September 30, 2015.
The Germany-based SAP generated €600 million (+116 percent) revenue from Cloud subscriptions and support, €1.01 billion (+7 percent) from software licenses, €2.51 billion (+12 percent) from software support, €3.5 billion (+11 percent) from software licenses and support and €4.12 billion (+19 percent) from Cloud and software.
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