This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Salesforce.com Outage Strikes Again

Updated from 2:38 p.m. EST

Salesforce.com (CRM), which suffered a widespread service outage two weeks ago, experienced another, though apparently smaller, snafu on Thursday.

An internal company memo viewed by TheStreet.com indicates that customers in Europe, Asia Pacific and North America were affected for several hours.

The outages are serious since they cast doubt on the company's ability to ensure that customers can access critical sales and customer data at any time.

"With three weeks to go in the fiscal year, this outage could not have come at a worse time for sales guys trying to close business," said SG Cowen analyst Peter Goldmacher in a note to clients. "Our checks so far have revealed a lack of large deals this quarter and we expect this second outage to cause a material delay in January close rates."

The analyst added, however, that he still sees Salesforce as "the best growth story in software" and recommends it for longer-term investors. His company does not have an investment banking relationship with Salesforce.

Salesforce spokesman Bruce Francis acknowledged Thursday's episode and said, "there's no thing as a minor outage because we know that even one moment of degraded availability is a moment our customers can't do what they need to do."

Late last year, Salesforce opened two new data centers which were designed to minimize service disruptions. Francis said that while the centers are open, the infrastructure tying them together is not yet fully operational. He declined to say when the company expects to finish the project.

The news did nothing to dampen the enthusiasm of investors for the stock. Spurred by an upgrade earlier Friday from CSFB, the stock soared $3.77, or 10.5%, in recent trading to a new 52-week high of $39.83.

Salesforce, a leader in the burgeoning "on-demand" category, provides software that helps manage customer data; but unlike traditional software suppliers who sell licenses, it hosts the applications on its own servers and charges for a service.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs