Morgan Stanley Says Salesforce.com Is In A Service Cloud

According to Morgan Stanley, Salesforce.com CRM is under a service cloud. Morgan Stanley said that its work points to strength in the Service Cloud, decent large deal activity, improvements in Force.com and upside from recent acquisitions, which combined with the qtrly trans. data leads it to believe that Q1 should exceed the cons. billings growth ests. Of +26-27% YoY. “The stock will not react well to a material deceleration in billings from the +36% seen in Q4, but CRM can work better as it gets through 1H as FY12 cons. billings look low and long term growth should settle in closer to 30% vs. the 26% we model in ‘12.” Salesforce.com closed yesterday at $128.96.