Better SaaS Stock: Salesforce vs. ServiceNow

Over the past two decades, a growing number of companies have replaced their on-premise software with cloud-based subscription services. Those software-as-a-service (SaaS) solutions enable software companies to generate stable recurring revenues from their clients instead of relying on periodic upgrades. They also benefit customers with growing businesses since it's easier to scale those services across a large number of devices.

Salesforce (NYSE: CRM) and ServiceNow (NYSE: NOW) have both profited from that secular trend. Salesforce, which was founded in 1999, is the world's largest provider of cloud-based customer relationship management (CRM) services. ServiceNow, founded in 2003, optimizes an organization's digital workflows with its cloud-based tools.

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Source Fool.com