While Salesforce.com (NYSE:CRM) has been dominating the CRM market when it comes to cloud based software, it hasn’t made any major attempts to enter the ERP market. ERP applications facilitate the flow of information between all the major business functions of a company like sales, manufacturing, accounting, etc., making it easier to run the entire company.
There are some ERP applications available on AppExchange for the Force.com platform, but none of those have been made by Salesforce.com. SAP (NYSE:SAP), Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and Infor are the major players in the ERP segment. ERP is a very lucrative segment, which is seeing a shift to on-demand applications.
Salesforce.com Piggybacking on Infor to Enter the ERP Market
Salesforce.com had announced that it would be teaming up with Infor to launch ERP applications on its Force.com platform. Last week, Infor launched Inforce Everywhere, its ERP offering which is built on top of Force.com. 
It will be integrated with Salesforce’s CRM applications, enabling business to buy a complete software package which gives them a 360-degree view of their business operations and customers. Inforce Everywhere enables businesses to keep their CRM and ERP data in sync, and provide a much better service to customers than would be possibly otherwise. Salesforce.com has also invested in Infor, and this may be considered its indirect entry in the ERP space.
Cloud based CRM applications account for nearly 55% of Salesforce.com’s total value, while other cloud services account for 37%. Our $122 Trefis price estimate for Salesforce.com stands nearly 20% below its market price.Notes:
- Infor Delivers Inforce Everywhere to Connect Salesforce CRM With ERP, Press Release [↩]