Archives For June 2011

The Oracle of San Francisco has spoken.  The Cloud is Passé.  The Cloud is Dead.  All hail to the Oracle.

Or maybe Marc Benioff is so eager to move away from the cloud and on to the next hot thing because he knows that Salesforce.com, as a first generation SaaS application, has become a “legacy application” in the new era of the cloud.” According to Mark Vizard, author of SaaS is Dead, Long Live the Cloud, we’re now in a new era “that is defined by an elasticity that gives IT organizations maximum flexibility in terms of choosing to deploy software on premise, in the cloud or both.”

According to Vizard, “one of the fundamental tenets of software-as-a-service (SaaS) is that the application is supposed to run as a single instance on top of a multi-tenant IT infrastructure. With Salesforce.com, for example, every customer has specific rights and privileges to a shared customer relationship management (CRM) application running on database servers managed by Salesforce.com. Given that model, there is no ‘software’ from the perspective of the end customer. The Salesforce.com business model, combined with the fact that the application was designed from the ground up to run on a specific multi-tenant architecture, means customers can’t run a version of the Salesforce application on their premise.”

In another article, Vizard makes the case that cloud computing “will stand in sharp contrast to the way Salesforce.com operates. In the case of Salesforce.com, there is only one source for the company’s software that runs on a couple of data centers managed by Salesforce.com.”  He adds that “software-as-a-service (SaaS) as we think about it today is moribund in the age of the cloud.”  Vizard makes the case that cloud-based CRM solutions like SugarCRM “are going to let customers run their software on premise or in any data center they choose, as opposed to requiring them to run their CRM software on a data center managed by a software vendor.”

I don’t believe that the cloud is dead.  From where I sit, I see customers very eager to board the cloud train.  Customers really believe in the promise that cloud computing is giving them choice – a choice to deploy their software applications where it makes sense for them: in their private cloud, in the vendor’s cloud, or in a public cloud.  And knowing that they have the option to change their deployment based on their changing market requirements.

“Imitation is the sincerest form of flattery,” said Charles Caleb Colton in 1820.  So we’re delighted to see that Salesforce.com is copying our Mobile, Social and Open messages to give some substance to their latest Cloudforce events.  It is nice to see that after we started promoting these capabilities more than a year ago, Salesforce.com is following our lead.

So why is the 800 lb. gorilla in the CRM industry doing this?  Are they running out of creative positioning ideas?  Is there more to this than meets the eye?

We compete and win against Salesforce.com everyday and from where I sit, it seems obvious that Salesforce.com is concerned that SugarCRM’s flexible, intuitive and open CRM platform gives customers a better Global, Mobile and Social CRM solution.  They are so concerned that they are unable to compete with Sugar’s flexibility or price that they resort to publishing a list of “considerations” for prospects who are evaluating SugarCRM. A list of considerations that is nothing more than a smokescreen of “FUD”: Fear, Uncertainty, and Doubt.

Thank you Salesforce.com.  We are grateful that you are confirming that SugarCRM is the best alternative to Salesforce.com for customers who are looking for a cost effective, flexible, intuitive and truly open solution.  A solution that raises the bar and sets a new standard in mobile CRM and a Social CRM solution where companies get to collaborate with their customers, not provide behind the firewall chatter.

Or in the words of a customer: “Salesforce.com has really evolved.  They offer all the warmth of Oracle and the flexibility of SAP.  Which is why we choose SugarCRM, a flexible, intuitive and open solution that adapts to our business needs.”

So if you are in the market for a new CRM solution and you would like to consider all the facts when choosing the right CRM solution for your organization, please read this overview of SugarCRM.  We’ve included an answer to all the “considerations” Salesforce.com recommends you ask us.  And as a bonus, we added a list of legitimate questions you should ask Salesforce.com.