Salesforce.com: Stellar SaaS Financial Results

Salesforce.com  delivered the goods today. The software-as-a-service (SaaS) company announced particularly strong quarterly profits and raised its rest-of-year financial guidance. That's great news for SaaS and its close cousin, managed services. But let's not get too giddy.

I told readers a few weeks ago to get ready for SalesForce.com's results. After all, the company is a true bell weather for the SaaS industry. In its latest quarter, Salesforce.com's revenue grew 50.4 percent to $216.9 million and net income rose to $7.4 million from about $500,000 in the corresponding quarter last year.

Still, let's keep things in perspective: Assuming all of today's SaaS and managed services companies will thrive in 2008 is akin to expecting all PC companies to thrive in the early 1980s. Yes, it's great to compete in growing, dynamic markets. But long-term tech success requires great business execution, regardless of your core market.

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