$CRM . Salesforce breaking down.

If cloud computing is a leading sector in the tech, then the chart for is a sign that the tech industry is breaking down.

And by extension, entreprise spending is tightening in 2012.

From the Ichimoku Daily Chart, we can see that CRM as far as back as November in 2011 when it pierce through the kumo.

After which the counter rally, fail to go above the kumo.

From December till now, we can see 2 gap down on the chart; adding more strength to the bearish reading.

We can also see how the chart is showing a possible letter ‘h’ formation.

From the Weekly Chart, we can see that the next possible support is around $86



SaaS Stocks Continue Winning Streak

MSPmentor has a writeup on how companies within the ‘Software As A Service’ is doing.

Among their coverage, winners include RightNow Technologies (RNOW) which I have covered recently.

They also has a ‘SaaS 20 Stock Index‘. Not all companies in the index derives their revenue exclusively with the ‘software subscription’ model. For example, Google and Amazon are listed among the index.

I’m sure most of us knows that the bulk of revenue for these 2 are advertising and B2C sales respectively.

What it does suggest is the growing importance of ‘SaaS’; as a business model and revenue channel. We need to be careful here as well. Just because a company put a ‘SaaS’ sticker on their offerings does not means they will succeed.

In fact, from Business Insider, Google’s targetted revenue for App is only US$10million; a tiny fraction of their ads revenue.

So my bet, when it comes to companies in this area, are the one that live and die by this model.

  • RightNow Technologies (RNOW)
  • (CRM)
  • NetSuite (N)
  • AthenaHealth (ATHN)

Why? Because they are focus. They will do all they can to do better than the competitors because this is the key revenue channel.


RNOW : Adds Secure Hosting

In the previous post on RightNow Technologies (RNOW), I reported that they have secured a US Army Training contract.

With the contract, they are now offering secure hosting for thier hosted apps to meet the requirements of the Department of Defence (and any other agencies that has such requirements).

RightNow Technologies, a developer of customer support and customer relationship management software, has added new support for “high security” hosting on its products.

I see this as a plus point for RNOW. Hopefully, getting DoD contracts will help them to secure other government agencies contracts.

Such contracts often has requirements that creates a barrier to entry for many competitors. With RNOW now listed as one of the ‘preferred’ vendors, and having the capability to meet the ‘security’ demands, this will solidify thier foothold as the leader in SaaS for Customer Relationships.

Full article on RNOW secure hosting available here: