Tag Archive: SaaS


A “memorable” $211,703 Porsche or Land Rover?

A “visible” $86,423 Rolex?

And let’s not forget the applicable taxes on these two giveaways: $179,977 and $38,005 respectively.

For those scoring at home, Salesforce.com (NYSE:CRM) provided $516,108 in goodies to one man: newly minted co-CEO Keith Block, 57.

The Salesforce.com Compensation Committee justified the corporate largesse in its proxy statement filing:

“In this case, the committee approved this award because it believed that recognizing Mr. Block’s leadership and success in achieving company goals was warranted, and that doing so in a memorable and visible way would be motivational not only for the executive, but for other employees who observe exceptional performance being rewarded in exceptional ways consistent with the company’s philosophy of paying for performance.”

Paying for exceptional performance?

Does Block walk on water? Does he change water into wine? Does he dole out loaves and fishes to feed the hungry?

Before being named co-CEO last August, Block was already earning $2.3 million annually in salary and bonuses (not including stock option exercises) as the company’s vice chairman, president and chief operating officer.

Almost DailyBrett extensively researched and taught the relationship between fiduciary responsibility (doing well) and corporate social responsibility (doing good) as a master’s student at University of Oregon and later as a PR professor at Central Washington University.

Your author also served as the director of Corporate Public Relations for LSI Logic (NYSE: LSI) for a decade including preparing 10-Q, 10-K and 8-K news releases and regulatory filings for financial media and the SEC.

More to the point, Almost DailyBrett is a long-time Republican, free-enterprise supporter, and up-to-now a more than satisfied shareholder of Salesforce.com founded by fellow USC alum Marc Benioff.

Let’s state here and now: giving away a cool car and groovy watch (plus paying related income taxes for these two goodies) is inconsistent with Salesforce’s fiduciary responsibility to its shareholders … including not trying to be SaaS-see,  yours truly.

God help the company’s corporate PR department.

Ready to make chicken salad out of chicken feces?

How do you defend the indefensible? How do you stand-up on behalf of the untenable? Did the Compensation Committee discuss its decision with the PR types before giving away a Porsche and a Rolex to Monsieur Block?

And where is Salesforce.com located? San Francisco.

Do you think Bernie, Kamala or Elizabeth supporters residing in the Sodom and Gomorrah by the Bay are going to seize about this outrageous caper as an example about everything wrong with corporate America?

Occupy Salesforce?

Publicly traded corporations (e.g., Salesforce) provide the products we need (e.g., enterprise software), employ millions (e.g., CRM, 29,000) and provide a return on capital to millions investing in their retirement, health care or children’s education.

Buy-side (i.e., mutual funds, retirement systems) and sell-side (i.e. Goldman, JP Morgan, Morgan Stanley) institutions hold 82 percent of Salesforce’s 774 million shares outstanding.

In contrast, Almost DailyBrett is a lowly Charles Schwab retail investor with 300 shares.

If your author threatened to sell all of his shares because he is upset by the Keith Block giveaways, would company even notice, let alone care?

Heck, your author’s holding is a friggin’ corporate rounding error.

Salesforce has demonstrated by its regulatory filing temerity, it really doesn’t take fiscal stewardship and fiduciary responsibility seriously.

Actions speak louder than words. The perception and reality both stink.

No carefully massaged explanation and no amount of corporate social responsibility (CSR) – including calling for local tax increases to take care of the homeless – are going to change the undeniable fact that giving away a luxury car, a costly watch and paying the related taxes for one lousy executive … is wrong.

Dead wrong to be precise.

Almost DailyBrett editor’s note: According to Business Insider, the company did not disclose the exact make or model of Keith Block’s new car and watch. However, an educated guesstimate was made by the digital publication based upon the disclosed sales prices and related tax payments for the two luxury items. If the company actually bought Block a Lamborghini instead of a Porsche, your author will accept personal responsibility for the egregious mistake.

https://www.businessinsider.com/salesforce-ceo-keith-block-car-watch-2019-4

https://www1.salary.com/Keith-Block-Salary-Bonus-Stock-Options-for-SALESFORCE-COM-INC.html

https://www.salesforce.com/company/leadership/bios/bio-block/

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

 

 

 

“When are we going to realize in this country that our wealth is work?” – Comedy Central Jon Stewart assertion to CNBC’s Jim Cramer

Heard one of the talking heads of the chattering class last week on CNBC extol the virtues of “passive investing” in the face of massive volatility and the long-awaited arrival of a Wall Street correction.

Isn’t “passive investing” an oxymoron or a contradiction in terms, if not just plain dumb?

The basic premise is the 54 percent of Americans investing in stocks and stock-based mutual funds should put all of their investments on auto pilot, automatically “investing” a fixed percentage of their pay checks into company 401Ks or brokerage managed IRAs (Individual Retirement Accounts).

On more than one occasion, Almost DailyBrett has been critiqued for surfing Charles Schwab, Fidelity, Zillow and Wells Fargo each on a daily basis.

Is your author an unreformed capitalist? Please allow me to plead, guilty.

What’s curious is no one seems to raise an eyebrow to those constantly burying their noses into their smart phones, spending an inordinate amount of time on Facebook or Snapchat or bingeing on video games or streaming video.

As Jon Stewart correctly surmised in his 2009 televised pants-zing of Jim Cramer, far too many times retail investors have been sold this notion that markets inevitably go up, so don’t mind volatility and fluctuations. Forget about it!

And if that is indeed the case, panicking only leads to losses. No argument.

The question that Almost DailyBrett is raising and arguing is very simple: Do we want to manage your wealth accumulation or be managed by others who may not have our best interest at heart?

The Day, The Music Died

“I went down to the sacred store; Where I’d heard the music years before; But the man there said the music wouldn’t play.” – Don McLean, American Pie

Your author contends that portfolio management is not the same as day trading. At the same time, the notion of long-term investing makes absolutely no sense. Back in the 1990s, one would have been advised to invest in IBM, Cisco, Intel and Microsoft and walk away.

With the exception of Microsoft, the music stopped playing for these “DinoTech” stocks.

Worse, the 1990s investor would have missed the massive upsides of newly minted 21st Century rock stars, the likes of Facebook, Amazon, Netflix and Google (FANG).

Since the days of the three Gees – Andy Grove, Bill Gates and Lou Gerstner (all retired or in one case, deceased), a new trove of corporate rock stars has ensued – Mark Zuckerberg (Facebook), Tim Cook (Apple), Jeff Bezos (Amazon) and Elon Musk (Tesla).

Don’t you know, these shooting stars will eventually flame out? And as Don McLean wrote and sang, their music will eventually die.

Who will be the rock stars of the next decade? Should we keep some money on the sidelines, ready to buy low and sell high. If we become “passive investors,” we will blindly throw our hard-earned, discretionary dollars at Wall Street regardless of bull market or bear market.

Shouldn’t we be selling near or at the height of the market and buying near or at the low of the market? Or should we just designate portions or our IRAs or 401Ks to this mutual fund manager or that mutual fund manager because they are the “experts”?

Where Do You Shop? What Products/Services Do You Buy?

“I don’t care about a stock’s past, only its future.” – Jim Cramer of CNBC’s “Mad Money”

Almost DailyBrett has his fair share of mutual funds – domestic/foreign; large cap/mid-cap/small cap – and cash under management. Your author also manages four individual stocks, carefully avoiding the perils associated with all eggs coming from one chicken.

Apple: Let’s see, in the morning your author reaches for his Apple Smart Phone, runs to classic rock sounds on his antiquated iPod, and turns on his Mac at work. You bet ya, Apple is part of the portfolio.

Boeing: Considering that Donald Trump is president and more federal dollars are headed for defense and the economy is strong, regardless of market gyrations, Boeing has been a solid buy. The company sold 700 commercial airliners this year and plans to deliver 800 next year. Has your author been transported by Boeing Aircraft? Is the Pope, Catholic?

Nike: Uncle Phil is the founder of athletic apparel market leader and the über-benefactor of University of Oregon Athletics. Nike shoes/gear are worn for morning runs to complement the Nike+ software program on the Apple iPod.

Salesforce.com. Marc Benioff hails from my undergraduate alma mater, the University of Southern California (May The Horse Be With You). Mark is the founder, chairman and CEO of business software innovator, Salesforce.com. Let’s face it, many may claim a cloud legacy, but Salesforce.com was first to SaaS or Software as a Service.

Apple, Boeing, Nike and Salesforce are the four present individual securities in the portfolio of Almost DailyBrett. Are they examined and managed on a daily basis? You bet ya. Will they be there forever? Forget it.

Should an investor, who rejects passivity, consider these individual stocks?

Only your investment advisor knows for sure.

https://www.nytimes.com/2015/08/08/opinion/joe-nocera-on-the-cramer-takedown.html

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

https://don-mclean.com/

 

 

Sixty-eight years ago Adolf Hitler and his propaganda chief Joseph Goebbels boasted about “Fortress Europa” and the “Atlantic Wall,” a series of supposedly impregnable defenses against the coming Allied invasion of France.

The guy actually in charge of these defenses, legendary Field Marshal Erwin Rommel, privately described his Führer’s vision this way: “He’s in cloud-cuckoo land.” (Wolkenkuckucksheim)

Nordafrika, Generaloberst Erwin Rommel

Considering everyone in the technology space seems to be getting their collective knickers-in-a-twist (or bowels-in-an-uproar, if you wish) about cloud computing, one is tempted to label this period of time as Cloud Cuckoo Land 2.0.

Almost DailyBrett in February commented on how PR/marketing/social media practitioners have this irritating habit of falling in love with certain terms and phrases, such as “organic,” “sustainable,” “solutions” etc., and then pounding them to death, reducing them to cliché status. “Cloud computing” was listed as one of those overworked buzz phrases. Almost DailyBrett even attempted to take all of these buzz words and phrases and work them into one massive run-on sentence. https://almostdailybrett.wordpress.com/2011/02/20/pounding-pr-buzz-words-to-death/

Since that time the quest for the cloud has actually accelerated, raising the obvious question as whether 15-yard penalties should be given for piling on. Google “cloud computing” and 120 million results come rushing at you, the ultimate contest in Search Engine Optimization (SEO). There are so many “clouds” out there that you would have to conclude that the weather is just downright overcast.

Just last week, Apple became the latest to be late in embracing the cloud. Steve Jobs led the charge, with the company’s “iCloud” announcement in San Francisco. The “technology” even comes with a nifty little tag line, “It just works,” which sent the 5,000 gear-heads in the audience into spontaneous simultaneous orgasm.

After working in technology for 15 years (10 with LSI Logic, two with the Semiconductor Industry Association and three with Edelman), let me assure you that no marketeer wants to be seen as falling behind the competition. It is far better to copy, borrow, pilfer, steal someone else’s idea and add your own particular bits, bytes, bells, whistles and spin than to explain why you were beaten.

What is particularly fascinating about cloud euphoria is that even the targets of this approach, namely Microsoft and Oracle, are appearing to embrace this cloudy concept (kicking and screaming?)…whether they want to or not.

New York Times columnist and author Thomas L. Friedman in his The World is Flat (2005) provided an excellent explanation of cloud computing or the downloading of software from the Internet (the cloud) via a web browser: “Software becomes something you rent, instead of something you own. Somebody else takes care of the upgrading and maintenance.”

This concept was a direct attack on the proprietary software of Microsoft, Oracle and SAP by Salesforce.com and some others. As Saleforce.com chief Marc Benioff said: “Microsoft wants you to buy more software. We want to see the end of software.” And if you visit Salesforce.com’s website there is the word “software,” sitting on its own little cloud with the diagonal line striking it out.

cloudcomputing

Microsoft certainly knows a trend when it sees one, and instead of countering Salesforce’s creativity, it extols the virtues of “cloud power” even including a tagline of completely overused buzz words and phrases imploring perspective customers to: “Find out more about our cloud-based platform solutions.” Let’s see: “Cloud,” “Platform” and (my favorite) “Solutions” in just four words.

Salesforce.com deserves credit for creativity. Whether Benioff et al are the actual creators of cloud computing or Software as a Service (SaaS) or not, they have assumed a first-mover position. As we used to say in my Sacramento days, “When in doubt; declare victory.” Benioff certainly has claimed victory.

Everyone else is taking turns spraying the fire hydrant. Consider IBM which has taken SaaS and devised its own acronyms, Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). Wonder where they came up with those ideas? Will someone follow with PiiS?

Supposedly, Silicon Valley is the cradle of innovation. Alas, when it comes to public relations, marketing and social media, the usual practice is not creativity and cleverness. Instead it’s follow the leader (and pretend that is not what you are doing), trying to make it appear that you have something different when in reality you are copying someone else’s idea and you are late as well. Many PR offensives — targeting editors, bloggers, analysts, reporters — have been based on these shaky premises.

Communications innovation, creativity, choreography and cleverness are certainly easier said than done, it helps to have a real killer app. In the case of the cloud, it does not appear that anyone has really tried. All they did is let a few create while the rest surrendered en masse. Not even Erwin Rommel can save them.

http://news.bbc.co.uk/dna/h2g2/plain/F8984900?thread=4935057

http://en.wikipedia.org/wiki/Erwin_Rommel

http://en.wikipedia.org/wiki/Cloud_computing

http://www.salesforce.com/cloudcomputing/

http://www.ibm.com/cloud-computing/us/en/

http://content.dell.com/us/en/enterprise/cloud-computing.aspx

http://www.microsoft.com/en-us/cloud/default.aspx?fbid=XN-13jrEZdF

http://www.oracle.com/us/products/applications/fusion/hcm/index.html

http://www.apple.com/icloud/

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