Analyst: Is Overhiring (CRM) (CRM) is “over-investing” in enterprise sales reps, says Cowen’s Peter Goldmacher.

He says the customer-relationship management software as a service provider (Bingo!) can’t compete with Oracle in the enterprise and should just stick to selling its wares to small and medium sized-businesses:

We are concerned that CRM is massively over-investing in Enterprise sales reps while the end market is shrinking, virtually guaranteeing, in our view, that sales productivity will continue to decline. This problem is compounded by a raft of new product offerings that have far more appeal in the SMB space than in the enterprise. Force, AppEx and Sites are interesting platforms with real appeal at the low end, but unlikely to replace years of hard wired Enterprise infrastructure.

(Photo by Robert Scoble)

See Also: Rival: Marc Benioff Had Us Booted From Our Hotel (CRM)



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