Salesforce.com submits to IPO test

US hosted-software company Salesforce.com has announced plans to float on either Nasdaq or the New York Stock Exchange.

The company hopes to build on the success of its 'client/service' model in customer relationship management.

It has registered its interest with the US Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of common stock.

As one of the few bright stars in the dotcom sky, Salesforce.com's IPO early next year is tipped to be one of the biggest of 2004, worth as much as $115m.

Founder, chairman and chief executive Marc Benioff is waging war on what he calls the "fatally flawed" software model of companies like Siebel and Oracle by offering a web-based system at a standard price of around $50 per user per month.

"Most customers have been screwed by the big software suppliers," Benioff told vnunet.com in a recent interview.

"Most small and medium-sized customers have been left out in the cold. You just don't see a lot of customers who are happy with what they have bought."

Morgan Stanley will handle the sale of the stock once the registration statement related to Salesforce.com's securities has been filed with the SEC.

The company's business model, and Benioff's outspoken comments on the sins of the software business, have helped raise Salesforce.com's profile among technology companies.

Additional reporting by Colin Barker.