Salesforce's CEO bashes SAP: 'They should try writing some software'

Hot off another stellar quarter that beat on revenue and profits, Marc Benioff repeated his new goal to be “the fastest software company ever to $US10 billion in revenue.”

But he also added that his “dream” was to “beat” SAP. And he thinks doing that will be a cakewalk, he told Wall Street analysts on the quarterly conference call.

When Salesforce hits that goal $US10 billion goal, the company will be the fourth largest software company in thew world, he said:

When that happens, we are really targeting one company to beat and that’s SAP. Fortunately for us, their kind of lacklustre growth execution and lack of innovation in their core product, we just saw in their product this quarter, they are an easy target.

… the $US10 billion revenue run rate that’s step 1. Step 2 is go past SAP. I think we can absolutely do that. I’m personally committed to making that happen. That’s my dream.

And the trash talk didn’t stop there. Later Benioff said, “The only innovation SAP has is in rhetoric. They should try writing some software.”

SAP co-ceo bill mcdermott on cloud servicesBusiness InsiderBill McDermott

He may have been referring to SAP CEO Bill McDermott’s recent statements that that SAP isn’t interested in buying Salesforce, nor does McDermott think any of his competitors would be willing to cough up the huge price Salesforce would command.

Its stock has been trading at near-time highs with a market cap of about $US46 billion.

As to when this $US10 billion dream will happen, Benioff won’t commit. The $US10 billion in “run rate” revenue is about double the revenue that Salesforce had when it wrapped up its fiscal 2015 last quarter.

But Benioff says Salesforce already has $US9 billion under contract, $US3 billion of it as deferred revenue and another $US6 off the books, as un-billed deferred revenue.

As for chasing SAP, the biggest maker of application software in the world, Benioff isn’t alone in that dream.

His old employer, Oracle, has been trying to beat SAP in the application market since 1999, Safra Catz recently said. Oracle is No. 2 and closing in, she’s convinced.

But she also says, “Silver medal is the first loser.”

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