NEW YORK ( TheStreet) -- Corporate executives continue to moan about weak enterprise spending and its effect on their companies' growth. This has persisted for almost three years.
But if were to look solely at the results of global cloud computing giant Salesforce.com (CRM - Get Report) you would wonder what are they complaining about. For Salesforce, whose stock continues to be a source of angst for value investors, growth has come in great abundance. And there are no meaningful signs of slowing down.
The last time I talked about this company, I was forced to admit defeat. I tapped out after two years of Salesforce quenching the Street's growth appetite. In the process, management planted its flag on the forehead of the all-popular software-as-a-service (SaaS) market.
Salesforce, which is often criticized for weak profits, came to an understanding. The company realized before everyone else that corporations may not have invested in hardware and other big-ticket enterprise systems, but they've certainly placed a priority on customer relationship management (CRM).Even better, with its expertise in the cloud to manage various business functions like sales, marketing and big data analysis, Salesforce figured out how to service these needs at a fraction of the cost. The company's subscription platform has become the new standard, replacing the traditional contracts and bundled licenses from the likes of IBM (IBM) and SAP (SAP). And Salesforce's growth, according to research firm Gartner, has only just begun. The CRM market is expected to grow to $24 billion this year and by another 50% in three years. Accordingly, rivals like Oracle (ORCL) and IBM have begun to make significant capital investments to make the most of that explosion. But it won't be easy. The thing to remember here is that the cloud is the key component of the CRM market .