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Salesforce.com Pro’s & Con’s

    An Independent Assessment

           By Chuck Schaeffer
Salesforce.com
Salesforce.com is the cloud CRM pioneer. However,
with its substantial size, it no longer leads the industry
in terms of revenue growth, but in absolute terms of
SaaS CRM revenues, customer acquisitions and user
subscriptions the company is a clear market share
leader. In this Salesforce.com CRM review we examine
strengths and weaknesses of an industry leader.

A more detailed Salesforce.com Review Report is
available at http://www.crmsearch.com.
Salesforce.com Pro’s
•   The company is a proven innovator. This strength alone separates Salesforce.com
    from much of its competition and provides software longevity and increased payback
    for customers.
•   Salesforce.com promotes a vibrant user community. The company uses its own Ideas
    solution to solicit community input, actively monitors social channels and provides
    online communities for customers to make themselves heard. Too often CRM
    companies don't actually practice the Customer Relationship Management they speak
    of, however, Salesforce.com walks the walk.
•   The Salesforce.com user interface maximizes consumer technologies to deliver a
    simple and rewarding user experience. This has delivered a profound effect in
    achieving user adoption.
•   Salesforce.com is championing social CRM and delivering the technology for its
    customers to achieve social CRM business objectives.
•   The company's combination of Force.com, PaaS tools and AppExchange lead the
    SaaS CRM industry in terms of cloud integration, software customization, third party
    extensibility and ecosystem.
Salesforce.com Con’s
•   As Salesforce continues its transition from a CRM company to a platform company, several
    CRM competitors have exceeded Salesforce's CRM features, functions and capabilities.
•   Unlike primary competitors such as Oracle, Microsoft, SAP, SugarCRM and others whom
    offer both choice in deployment (on-premise, on-demand or a hybrid combination) as well
    as choice in cloud platform (vendor cloud, private cloud or public cloud), Salesforce.com
    does not support any public cloud (i.e. Amazon EC2, Microsoft Azure, Rackspace, etc.)
    which limits hosting options, prevents portability, threatens IT investment and significantly
    increases exit costs. For example, Salesforce.com customers who choose to extend their
    CRM software solution with custom development created with a single vendor tool set
    (Force.com) and which only operates on one cloud will likely not be able to transfer and
    protect that investment if they choose to leave Salesforce.com.
•   Salesforce.com marketing software is competitively weak in the SaaS CRM industry. To
    achieve lead management or marketing automation capabilities such as digital prospect
    tracking, lead scoring, progressive profiling, nurture campaigns and rich marketing analytics
    requires a separate product acquisition. Salesforce has introduced the Marketing Cloud, but
    its limited to social marketing and satisfies few or none of the previously listed lead
    management or marketing automation requirements. Many Salesforce.com customers turn
    to third party marketing automation software products from vendors such as Act-On
    Software, Eloqua, Marketo or Pardot, which deliver strong solutions but increase costs and
    multi-vendor management issues.
Salesforce.com Con’s
•   Salesforce.com is without sophisticated business intelligence (BI). Customers seeking data
    warehousing, data mining, online analytical processing (OLAP) or predictive analytics will
    need to procure third party solutions from AppExchange or elsewhere.
•   Despite an initial thrust and acceptance in the small business market, small business
    customers repeatedly opine that professional services options are few and costly. For small
    business customers that require software customization, integration or other professional
    services, the lack of channel options, combined with the lack of desire for smaller projects
    by the few partners available, leave this customer segment without many options.
•   When reviewing features to features its apparent that Salesforce.com is the highest priced
    product in the SaaS CRM industry.
•   Salesforce.com becomes less competitive when looking beyond CRM as a point solution.
    For companies seeking broader business software suites, including back office accounting
    or ERP systems, the inconsistency and relatively shallow integrations delivered with third
    party AppExchange vendors do not stand up well to single vendor solutions from
    competitors such as NetSuite and SAP Business ByDesign.
•   The company operates fewer international data centers than many of its competitors. This
    can impact user performance (latency, hops, jitter, etc.) as well as pose regulatory concerns
    with regard to data privacy and government compliance. This may make Salesforce.com
    less appealing for customers that get progressively further away from the U.S.
Salesforce.com Con’s
•   The Salesforce.com customer base is predominantly B2B. The CRM software is not
    nearly as well oriented to the B2C industry.
•   Surprisingly, Salesforce.com generally doesn't provide a Service Level Agreement (SLA) for
    its cloud service unless the customer requests and negotiates it. Even then, SLAs are
    inconsistent from customer to customer and fall below uptime guarantees of primary SaaS
    CRM competitors.
Conclusion
•   Salesforce is an innovator—and this is a key strength that sets the company apart
    from much of its competition. They were one of the first business software companies
    to inject consumer technologies into business applications—and continue to do this
    faster than most of their peers. They have accelerated the pace of platform as a
    service (PaaS), mobile CRM, social CRM and more, and show few signs of slowing
    their creativity and momentum. In fact, the company must continue to out-innovate its
    competition not just for product superiority or value-add purposes, but to stave off the
    inevitable downward pricing pressures that are otherwise unavoidable as online CRM
    software becomes commoditized. The on demand CRM market is now plentiful with
    credible competitors, so Salesforce.com's innovation is far more about holding off
    price erosion than technology advancement.
•   Salesforce.com's core competencies are innovation, evangelism and marketing
    prowess. A potent combination that can leap frog competitors, create new category
    leadership and earn significant market share. In many ways, the company's future is
    less predictable now than when run from the bedrooms of a small San Francisco
    apartment over a decade ago.

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Salesforce.com Pros and Cons

  • 1. Salesforce.com Pro’s & Con’s An Independent Assessment By Chuck Schaeffer
  • 2. Salesforce.com Salesforce.com is the cloud CRM pioneer. However, with its substantial size, it no longer leads the industry in terms of revenue growth, but in absolute terms of SaaS CRM revenues, customer acquisitions and user subscriptions the company is a clear market share leader. In this Salesforce.com CRM review we examine strengths and weaknesses of an industry leader. A more detailed Salesforce.com Review Report is available at http://www.crmsearch.com.
  • 3. Salesforce.com Pro’s • The company is a proven innovator. This strength alone separates Salesforce.com from much of its competition and provides software longevity and increased payback for customers. • Salesforce.com promotes a vibrant user community. The company uses its own Ideas solution to solicit community input, actively monitors social channels and provides online communities for customers to make themselves heard. Too often CRM companies don't actually practice the Customer Relationship Management they speak of, however, Salesforce.com walks the walk. • The Salesforce.com user interface maximizes consumer technologies to deliver a simple and rewarding user experience. This has delivered a profound effect in achieving user adoption. • Salesforce.com is championing social CRM and delivering the technology for its customers to achieve social CRM business objectives. • The company's combination of Force.com, PaaS tools and AppExchange lead the SaaS CRM industry in terms of cloud integration, software customization, third party extensibility and ecosystem.
  • 4. Salesforce.com Con’s • As Salesforce continues its transition from a CRM company to a platform company, several CRM competitors have exceeded Salesforce's CRM features, functions and capabilities. • Unlike primary competitors such as Oracle, Microsoft, SAP, SugarCRM and others whom offer both choice in deployment (on-premise, on-demand or a hybrid combination) as well as choice in cloud platform (vendor cloud, private cloud or public cloud), Salesforce.com does not support any public cloud (i.e. Amazon EC2, Microsoft Azure, Rackspace, etc.) which limits hosting options, prevents portability, threatens IT investment and significantly increases exit costs. For example, Salesforce.com customers who choose to extend their CRM software solution with custom development created with a single vendor tool set (Force.com) and which only operates on one cloud will likely not be able to transfer and protect that investment if they choose to leave Salesforce.com. • Salesforce.com marketing software is competitively weak in the SaaS CRM industry. To achieve lead management or marketing automation capabilities such as digital prospect tracking, lead scoring, progressive profiling, nurture campaigns and rich marketing analytics requires a separate product acquisition. Salesforce has introduced the Marketing Cloud, but its limited to social marketing and satisfies few or none of the previously listed lead management or marketing automation requirements. Many Salesforce.com customers turn to third party marketing automation software products from vendors such as Act-On Software, Eloqua, Marketo or Pardot, which deliver strong solutions but increase costs and multi-vendor management issues.
  • 5. Salesforce.com Con’s • Salesforce.com is without sophisticated business intelligence (BI). Customers seeking data warehousing, data mining, online analytical processing (OLAP) or predictive analytics will need to procure third party solutions from AppExchange or elsewhere. • Despite an initial thrust and acceptance in the small business market, small business customers repeatedly opine that professional services options are few and costly. For small business customers that require software customization, integration or other professional services, the lack of channel options, combined with the lack of desire for smaller projects by the few partners available, leave this customer segment without many options. • When reviewing features to features its apparent that Salesforce.com is the highest priced product in the SaaS CRM industry. • Salesforce.com becomes less competitive when looking beyond CRM as a point solution. For companies seeking broader business software suites, including back office accounting or ERP systems, the inconsistency and relatively shallow integrations delivered with third party AppExchange vendors do not stand up well to single vendor solutions from competitors such as NetSuite and SAP Business ByDesign. • The company operates fewer international data centers than many of its competitors. This can impact user performance (latency, hops, jitter, etc.) as well as pose regulatory concerns with regard to data privacy and government compliance. This may make Salesforce.com less appealing for customers that get progressively further away from the U.S.
  • 6. Salesforce.com Con’s • The Salesforce.com customer base is predominantly B2B. The CRM software is not nearly as well oriented to the B2C industry. • Surprisingly, Salesforce.com generally doesn't provide a Service Level Agreement (SLA) for its cloud service unless the customer requests and negotiates it. Even then, SLAs are inconsistent from customer to customer and fall below uptime guarantees of primary SaaS CRM competitors.
  • 7. Conclusion • Salesforce is an innovator—and this is a key strength that sets the company apart from much of its competition. They were one of the first business software companies to inject consumer technologies into business applications—and continue to do this faster than most of their peers. They have accelerated the pace of platform as a service (PaaS), mobile CRM, social CRM and more, and show few signs of slowing their creativity and momentum. In fact, the company must continue to out-innovate its competition not just for product superiority or value-add purposes, but to stave off the inevitable downward pricing pressures that are otherwise unavoidable as online CRM software becomes commoditized. The on demand CRM market is now plentiful with credible competitors, so Salesforce.com's innovation is far more about holding off price erosion than technology advancement. • Salesforce.com's core competencies are innovation, evangelism and marketing prowess. A potent combination that can leap frog competitors, create new category leadership and earn significant market share. In many ways, the company's future is less predictable now than when run from the bedrooms of a small San Francisco apartment over a decade ago.