Global Equities Research has downgraded (NYSE: CRM) to equal weight, saying that the company would face stiff competition that may hurt revenue and margins. is going to face increased competitive challenges, which may reduce win-rates, lengthen sales cycle and put margin pressure, analyst Trip Chowdhry wrote in a note to clients.

The analyst said is not well positioned to ride the next wave of technological and behavioral shifts, which are virtualization and data portability. Meanwhile, Oracle (NASDAQ: ORCL) has raised the bar on cloud computing, which will be extremely difficult for to meet, especially on the architectural level and at the business level.

Chowdhry noted that's Platform-as-a-Service offering ( and Heroku) is starting to struggle against VMware (NYSE: VMW) and Red Hat (NYSE: RHT) and the success from its acquisition of Radian6 was short-lived as Google (NASDAQ: GOOG) and Twitter quickly entered the space with other social media analytics acquisitions.

It seems to us that now Radian6 will not be a revenue generator, that we previously expected it to be, the analyst said.

The analyst also cut its fiscal 2012 earnings view to $1.30 a share from $1.31 a share and revenue forecast to $2.228 billion from $2.234 billion. Wall Street expects Salesforce to earn $1.30 a share on revenue of $2.23 billion for fiscal 2012.

Shares of Salesforce were down $4.38, or 3.15 percent, to $134.76 on the New York Stock Exchange. Chowdhry has a price target of $95 on Salesforce stock.