Microsoft, not Salesforce, led the SaaS space in 2Q16
Earlier in this series, we discussed growth in the SaaS (software-as-service) space. SaaS and Salesforce (CRM) are so synonymous that whenever SaaS is mentioned in cloud space, Salesforce’s name automatically follows. After all, Salesforce pioneered the SaaS model, and SaaS is expected to be the fastest-growing segment of the cloud space.
However, a different story regarding Salesforce’s leadership position in the SaaS space emerged in 2Q16, when Microsoft overtook Salesforce’s in the overall SaaS space.
According to Synergy Research Group’s recent report, Microsoft (MSFT), not Salesforce, is now the “overall enterprise SaaS market leader.” Despite losing its position to Microsoft in the overall SaaS space, Salesforce continues to rule the CRM (customer relationship management) space.
Dominance in collaboration helped Microsoft emerge as leader
Collaboration, which is the largest segment in the overall SaaS space, grew 37% in 2Q16. Collaboration, in fact, grew at a faster rate than the overall SaaS space, which only grew 33% in 2Q16. Microsoft’s dominance in the collaboration segment has enabled it to achieve a leadership position in SaaS. Cisco (CSCO) and Citrix (CTXS) are also prominent players in the collaboration space.
A key factor contributing to Microsoft’s success story is its Dynamics business solutions, which is made up of Dynamics ERP (enterprise resource planning) products, Dynamics CRM Online, and Dynamics CRM on-premises.
Dynamics CRM is one of Microsoft’s core cloud offerings, apart from Office 365 and Azure, which generate the majority of the company’s cloud revenues. In 4Q16, Dynamics CRM Online seat additions more than doubled on a YoY (year-over-year) basis for the eighth straight quarter.
Notably, you can invest in the PowerShares QQQ Trust Series 1 ETF (QQQ) to gain exposure to Microsoft. MSFT accounts for 8.4% of QQQ. Investors looking for application software exposure might also consider QQQ. Application software accounts for ~28.4% of QQQ.
Under the new partnership, Adobe will shift its Marketing Cloud, CC, and Document Cloud services to Microsoft's Azure.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.