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The Safe Harbor Framework that permits the transfer of data between the United States and Europe is in jeopardy.

Last week, the Advocate General, a legal advisor to the European Court of Justice (the European Union’s top court), released his opinion on the EU-US the Safe Harbor framework, which he said is invalid. He said the agreement does not do enough to protect EU citizens’ personal information when it reaches the United States.

The Safe Harbor agreement has been around since the year 2000. More than 4,400 companies are Safe Harbor certified. U.S. and European companies rely on the EU–US Safe Harbor framework to permit the lawful transfer of personal data from the EU to the U.S.

The ruling is not yet final, and the EU court’s judges will issue a final ruling in the coming months.  If they follow the Advocate General’s recommendation, which they often do, this will cause significant headaches for U.S. companies that serve customers in the EU.

A reflection of increased digital privacy concerns in wake of the NSA scandal and Edward Snowden leaks, the ruling has the potential to impact thousands of U.S. and European companies. It presents serious challenges for U.S. SaaS providers who have built their businesses under the framework of the Safe Harbor agreement.

Without the Safe Harbor agreement in place, data that originates in Europe may need to stay strictly in Europe. This includes everything from payroll to customer data. Some large enterprises have tried to stay ahead of the issue by investing in data centers in Europe.  However it should be noted the local data centers don’t fully solve the issue.

While this ruling does present challenges for SugarCRM, the company is better equipped than “SaaS only” solutions that lack local or on-premise deployment options. SugarCRM offers multiple deployment options and can continue to provide viable alternatives for EU customers, including:

  • Local hosting through various partners including “in country” hosting by T-Systems
  • On-site deployment options that require simple instance migration, meaning customers do not need to transfer their data to Sugar

Other SaaS/premise mix providers may be hard pressed to keep their customers, as SugarCRM is one of the only multiple deployment CRM providers offering a single code base across all deployment options.

SugarCRM has customers in more than 120 countries. We realize companies around the world are subject to many different laws and regulations. Legal requirements in one country may be inconsistent with legal requirements applicable elsewhere. Hence, we offer a multi-tenant cloud service, a private instance in the cloud, and also allow customers to deploy on their own internal clouds. A flexible deployment approach allows our customers to more easily comply with international data security and privacy laws.

channel-cheifs-2015-400.jpgAnyone familiar with CRN’s “50 Most Influential Channel Chiefs” list knows it’s a distinction of honor. So when the announcement came this week that my name was among the most highly accomplished channel executives, I was proud beyond measure for both our channels team and our channel partners. We have a top-notch channel program at SugarCRM and the success our partners are enjoying illustrates how well that program is working.

SugarCRM has a long history of being a channel publisher (that’s “inside baseball” jargon for being a company that sells through channel partners). We started the company 10 years ago and within days of releasing our first version of Sugar in July 2004, a CRM consulting firm named Synolia in France reached out to ask about our channel program. That was the beginning of a very powerful set of partnerships between SugarCRM and over 200 CRM consulting and reselling companies around the world.

Over the course of the last two year years, I and my team have worked diligently to up-level the channel program and add significant new structure to enhance it. We brought our value added resellers (VARs), system integrators (SIs), original equipment manufacturers (OEMs) and independent software vendors (ISVs) under one department and executive leader. This means every partner who represents SugarCRM, embeds Sugar in their own products or integrates with Sugar is now managed by one, fully integrated department. In that time we have also rolled out partner scorecards so each partner can continuously measure their success, established an OEM program and team to work with other software companies that want to embed Sugar in their products, and launched a revamped reseller program with program tiers based on training certification minimums and sales attainment. We also moved our channel partner program up-market, focusing on larger customers and larger partners.

The results speak for themselves. Now, over 60 percent of SugarCRM’s recurring revenue comes from our global channel partners and almost every customer leverages one of our partners, whether a reseller, SI, ISV or OEM partner. We have more than 200 VARs in over 30 countries around the world. We have expanded our channel program to include an OEM partner offering for regional- and vertical-specific solutions with partners like Project Pipeline. And, we’re on track to grow our channel partner program even more this year.

For me, the Channel Chiefs title is validation that the SugarCRM ecosystem of partners continues to be a significant component of the company’s success and our customer’s CRM success.. The implications are just as important for the CRM marketplace itself. Of course, SugarCRM has already proven its mettle as a disruptive player in the CRM market by virtue of its focus on the individual as key in creating extraordinary customer relationships. But just as important, every company that uses CRM must look closely at what differentiates them and implement the right CRM solution that enhances and illustrates those differentiators to their customers. That’s what our partners do for our customers.

From starting the company in 2004 to driving CRM success through our partner ecosystem today, I love every day here at SugarCRM. From the product to the people, SugarCRM is in a league of its own, bucking yesterday’s technology and setting new standards in the industry. This Channel Chiefs accolade is indeed testament to the great success the SugarCRM team and our channel have achieved due to perseverance, innovative thinking and a singular focus on highlighting the customer experience as what’s really important in CRM. I’m proud to share my title of “Influential Channel Chief” with the entire team at SugarCRM and our channel partners, and look forward to our continued success.

By Clint Oram, Co-founder and CTO at SugarCRM

Think you know who in your organization is part of your customer service team? Think again. The fact is that almost every employee is potentially customer facing in today’s social era, compliments of Twitter, LinkedIn and Facebook, to name a few.

Fifteen years ago the customer relationship management dynamic was entirely different and much more finite. Back then employees in just a handful of departments engaged with customers through traditional channels — email, phone, chat or face to face. But the landscape evolved and direct lines of communication to customers have been extended to everyone in an organization — even back-office or “invisible” employees — via social channels. (Here at SugarCRM, for example, several of our engineers might blog for us, and these blogs are read and commented on by our customers.) This practice is not unique to SugarCRM. Many companies encourage their employees to responsibly engage with customers via Google+, Twitter or other social channels.

Unfettered access to a range of employees is a major benefit to customers who want to consocial-customer-care-1nect with company representatives apart from those in the marketing, sales or customer service departments. Today’s customers want to make a human connection with “regular people,” and know, like and trust those they do business with. Social media facilitates this type of connection. But the challenge is ensuring customer engagement is consistent and effective across the company regardless of which communication channel is used. It’s also important to provide value to the customer in each interaction, so having critical, up-to-date customer information at hand is critical throughout the customer journey.

In a recent article on ZDNet, best-selling author, Paul Greenberg, argues that customer’s voices, amplified by social media these days, makes them feel entitled to an amazing customer experience at the speed of light and woe to companies that don’t give it to them. He also goes on to say that if companies want to provide an amazing experience, they really need to understand, and be in close contact with, their customers. They need to be engaged with their customers. What a concept!

So, how do you stay ahead of this challenge and create a customer-centric culture at your company? Here’s a start:

  • Choose a CRM system that extends across the organization to all employees. With traditional CRM systems, we see that they are typically relegated to users in marketing, sales and support. If CRM was extended to everyone in the organization, imagine the customer relationships that could be nurtured and imagine the level of customer satisfaction that could be achieved.
  • Pick a CRM that is social-ready with an advanced user experience. Sugar helps you manage all social interactions with collaboration tools and contextual intelligence within a single dashboard.  This turns every individual into a customer expert by uniquely personalizing their interactions, creating a 360-degree customer view and driving true customer loyalty.
  • Recognize that great customer service is not solved by technology, but rather supported by it. Truly becoming customer-centric may require significant cultural changes inside an organization. Invest in this initiative. By getting every potential customer-facing employee to understand the value that they bring to the organization as a brand ambassador, and equipping them with the tools and information to facilitate superior customer experiences, the results will be overwhelmingly positive.

In our hyper-connected world, it’s imperative that all employees have the same access to customer information to deliver a consistent experience and avoid appearing fragmented and siloed. In essence, all employees can/should evolve into “customer experts.” This is how you ensure customer experience integrity is maintained in the 21st century.

This mission has guided SugarCRM throughout its decade-long history — well before the social media wave hit our shores. The company was, after all, founded on the idea that customer relationship management is more than marketing, sales or customer support automation. We have always inherently championed the individual, and emphasized that each customer-facing employee (these days that means everyone with a Twitter handle or Facebook profile) should be empowered to create extraordinary customer relationships.

The SugarCRM alliances team is coming off a very productive few days in Orlando, Florida last week as part of our participation at IBM Connect 2014. Among the highlights of the week, SugarCRM was named as a finalist for IBM’s 2014 Collaboration Solutions Award in the “Best of Show and Chief Technology Officer (CTO)” category during the event.

The combined Best of Show/CTO Award recognizes visionary IBM business partners who use cross-IBM Software Group (SWG) capabilities in innovative, customer-focused ways. SugarCRM was named a top award contender after demonstrating how the Sugar-IBM solution helps customers maximize and improve social business efforts and increase bottom-line results.

The SugarCRM-IBM solution includes SugarCRM’s integrations to IBM SmartCloud for Social Business, IBM Notes and IBM Connections. In addition, SugarCRM’s integrations to IBM Campaign and IBM Interact further extends the IBM Smarter Commerce solution and brings the power of IBM Enterprise Marketing Management to customer-facing sales, support and marketing individuals. SugarCRM also runs on IBM DB2, IBM SmartCloud, IBM SoftLayer, IBM PureSystems and IBM PowerLinux.

The good news is, customers benefit the most from the SugarCRM-IBM connection. For example, SugarCRM customer Tollpost Globe, one of the Nordic region’s leading logistic companies, needed a platform that would increase internal efficiency as well as customer satisfaction. Since implementing SugarCRM and IBM Collaboration, Tollpost Globe has already seen a 70 percent increase in sales, a 40 percent increase boost in sales efficiency and a 30 percent rise in customer satisfaction numbers.

We are in a new era of CRM – one that is more intuitive, personalized and social, and our partnership with IBM underscores SugarCRM’s commitment to delivering solutions that enable our customers to engage in highly innovative social selling.  The SugarCRM and IBM relationship is gaining impressive momentum and underscores our commitment to further extending our social business solutions to new markets, products and customers around the globe. This recognition by IBM is an exciting and telling testament to that fact.

To learn more about how you can harness the power of Sugar and IBM technology visit

cal“Am I what!?”, you’re probably saying.  “But it’s only August.  2014 is five months away!”

Yep, and it’s time to start planning for next year.  We are in a global recovery and you need to be thinking about growth and taking full advantage of the economic recovery.  Here at SugarCRM Inc., our company has tripled in size since 2010.  We have three times the number of people and three times the amount of business.  We are barreling forward on this growth curve going into 2014.  Is your company growing too?  Are you figuring out now how to hit those growth goals?

At SugarCRM, we serve “Growth Companies” like yours everyday.  We talk to hundreds of companies every day who are enjoying great growth themselves.  As a result, their sales quotas are going up and management demands for visibility into the sales pipeline are also going up.  While the past few years were all about tightening the corporate belt, 2014 is going to be all about managing growth to full effectiveness.

The first question you have to ask yourself is, “Are you ready?”  Do your sales people have the tools they need to be more effective than the competition?  Have you built a sales strategy for maximizing growth?  Can your sales people qualify leads, manage sales cycles and close deals quickly and effectively?  Have you aligned your teams, processes and tools with that sales strategy?  Do you know what you need to hit your goals?

If not, talk to a SugarCRM solution expert today about how you can get ready for growth in 2014.

The global markets are rebounding and companies like yours are focused on growth again. But achieving and sustaining double-digit growth quarter to quarter is hard. Building your company for rapid scale is challenging. And doing that while keeping those close, personal customer relationships you’re known for can be even more challenging. You’re in the process of upgrading all of your business automation to manage this next stage of growth. This is where SugarCRM comes in.

SugarCRM has a global portfolio of over 6,500 customers who look just like you; mid-sized companies growing rapidly into small- to mid-sized enterprises. You’re looking for how to move from manual processes mastered by a few heroes in your company to standardized and automated processes across a whole legion of sales professionals. This may even be your first CRM purchase. Microsoft Excel just not working for you anymore? SugarCRM provides the perfect solutions for managing your customer-facing operations. Whether it’s keeping in touch with your customers or passing leads to your field personnel or answering questions in the call center, SugarCRM provides market-leading innovation at one, simple price.

And what’s more important, we get you. At SugarCRM, we ourselves are a growth company. We understand what it means to grow like you in today’s challenging market conditions. SugarCRM has already doubled its business in just the past couple years and is preparing to do it again. With the assistance of our global network of local channel partners, we can help you build and plan for success.

If your company has 100 – 4,000 employees and is planning on rapid growth in the coming upturn, Sugar is the right CRM solution for you. With thousands of customers across the financial services, insurance, professional services, manufacturing and technology sectors, SugarCRM delivers CRM success for Growth Companies just like you.

Building a company is fun.  I still remember sitting at my kitchen table with some friends and kicking around ideas on how to change the world by putting CRM on the desktop of everybody who ever works with a customer.  Then we took the plunge, quit our day jobs and focused every ounce of energy on starting a new kind of software company with nothing but a few laptops and the conviction that we could do it.  Exciting times.  Fast forward nine years and now SugarCRM is a global company with over 400 employees and hundreds of business partners helping our customers build better relationships with their customers.  Even more exciting times.

But translating a vision into a real business comes with its own challenges. It’s sounds like a simple recipe at a high level.  Step 1: Define your goals and objectives.  Step 2: Hire the right people to make it all happen. Step 3: Align those people around simple, yet effective processes to get the job done.  Now for the secret sauce.  Add in a dash of the right technology at the right point to accelerate the pace.

Voila!  Instant success!  Yeah, right.

Getting that perfect mix of operational execution is the challenge that all first time entrepreneurs as well as seasoned executives are faced with every day.  Am I building something people want to buy? How do I find great people?  How much process is too much process?  What do I automate first?

Here is what I see as the fatal flaw in that recipe I just outlined. I talked about adding in technology last after you have built your strategy, teams and processes.  That’s what most companies do today.  They graft on technology to manual processes in the hope that technology will help them accelerate a specific process, like distributing leads from marketing to salespeople or sending out invoices to customers.  But putting roller skates on your dog in order to speed up the nightly walks won’t necessarily work out the way you might have hoped.

A few months back Capgemini and MIT released a report called The Digital Advantage: How digital leaders outperform their peers in every industry that describes how successful companies today are putting digital technology, from software to smartphones, at the beginning of their business planning, rather than at the end.  These companies recognize the power of digital technology in solving old, complex problems in new, simple ways.  By building strategies and processes from the ground up around digital technology, companies will outperform those that don’t.  Little did I know that SugarCRM has been part of the “digitrati” from the beginning.

This is where IT typically fails for a company.  What happens too often is that a company that wasn’t built around a digital mindset gets stuck on the change management problem.  People are creatures of habit.  They are adverse to change.  How often have you heard, “But that’s not the way we’ve done it before!”  Deploying technology to accelerate a process not designed for today’s modern, digital business is not necessarily the right idea.  Even worse, designing a process that simplifies your employees’ lives and ignores today’s modern, digital customer is even worse.

For instance, should you deploy an invoicing solution that automatically puts invoices in the post?  After all, stuffing envelopes is a pain for your finance department.  Or should you rather set up a billing solution that allows your customers to set up automatic payment by credit card.  Which is better?

Another example.  Should you get your sales people to move their customer spreadsheets out of MS Excel up to Google Drive for easier sharing?  Or should you deploy a CRM solution that allows your sales department, service department and customers to collaborate together on answering the customer’s questions together?

And this is when the IT department becomes so often the enemy in the business instead of the strategic accelerator that the CEO envisioned.  Putting lipstick on a pig and automating old processes one step at a time can easily frustrate everybody, from your employees to your customers.

It’s time to rethink how you approach technology in your business.  Your employees want it, your customers are demanding it.