Archives For Cloud Computing

Great news for SugarCRM from Down Under.

iTnews, Australia’s leading source of enterprise IT and telecoms news, just published ‘Which Clouds Play Nice‘, a 44-page technical study of the integration and extension options offered by the largest 20 software-as-a-service vendors serving the Australian enterprise market.  Brett Winterford, editor of iTnews, writes that this “groundbreaking study asks a series of essential questions for any organisation considering adoption of cloud solutions offered by Atlassian, Financial Force, Google, IBM/Lotus, Microsoft, MYOB, NetSuite, Oracle, Paycycle, Quicken, RightNow, Saasu, Salesforce.com, SuccessFactors, SugarCRM, Taleo and Xero.  Namely:

  1. Can I get my data in and out freely?
  2. Does it integrate natively with other systems?
  3. What third-party integrations are available?
  4. Can I write code to integrate with it?”

The ‘Which Clouds Play Nice‘ analysis has a wealth of information and is a must read for any IT decision maker, anywhere in the world, looking at implementing cloud services and more specifically cloud-based CRM services.  We were humbled and pleased to learn that SugarCRM came out on top of the CRM Scorecard, when compared to salesforce, Oracle on Demand, Microsoft Dynamics, RightNow and NetSuite.

You can download this exclusive research from the iTnews portal here.

When I read GigaOM’s Mike Jones’s great contribution to the growing discussions on the future of SaaS, one thought kept going through my mind. Who’s taking the customer side in this discussion? So far the SaaS vs. XaaS discussion is mostly a technical and infrastructure discussion. “Acronyms as a Service” is a great idea, but really, shouldn’t it come down to giving customers choices?

It’s not up to our industry to dictate what solution customers should use. It’s up to us to create the solutions that enable customers to choose the right deployment model that meets their specific requirements. For some customers that will be SaaS, for others that will be IaaS or PaaS.

So to add to the discussion and focus it a bit more on CRM, what customers need is choice:

  • The choice to freely move their data between different clouds;
  • The choice to where they want to deploy their CRM instance;
  • The choice to integrate with any open social platform;
  • The choice to access their CRM solution from any mobile platform;
  • The choice to change their CRM when they run against the limitations that come with legacy CRM solutions; both on-premise as well as SaaS.

And for that CRM needs to be open. Today, SugarCRM is the only solution in the market that is open and built for the cloud. This flexibility offers customers choice.

For those of you who follow the CRM space, last week provided for some real drama. Here’s a quick recap courtesy of TechCrunch

Oct 4: Larry Ellison Cancels Marc Benioff’s Keynote at Oracle’s OpenWorld
Oct 5: After A Cancelled Keynote, Benioff Strikes Back; Talks Future Of The Cloud
Oct 6: Ellison Reveals Oracle’s Public Cloud; Calls Salesforce The ‘Roach Motel’ Of Cloud Services

I don’t want to dwell on this cloud spat, but the one thing I do want to talk about is one of the points that Larry Ellison raises.  He warned customers: “Beware of false clouds“, and further goes on to state that salesforce.com “is a proprietary cloud, the ultimate vendor lock-in”.  It really delights me to see that Larry Ellison is now saying what we’ve been saying all along.  Salesforce.com is not cloud computing.  Salesforce.com is a 10 year old multi-tenant hosting technology.

True cloud computing allows customers to freely move their data between different clouds;
True cloud computing gives customers the choice where they want to deploy their CRM instance;
True cloud computing is open;
SugarCRM is the only CRM solution in the market today that is truly build for the cloud.

On Oct 12, we announced added support for IBM SmartCloud Enterprise to the set of public clouds that customers can deploy Sugar on.  In addition to the IBM SmartCloud, Sugar runs on Amazon EC2, Rackspace Cloud and Windows Azure.  Customers can also choose to deploy Sugar in the Sugar Cloud, in one of our partner clouds or in their own private cloud.  To learn more about the benefits of REAL cloud computing, take a look at the following:

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.

Many have probably seen that Salesforce.com has acquired web conferencing tools provider DimDim for $31m. (The rumors of this deal had been percolating since before Dreamforce so for many this was no surprise at all.)

The deal pits Salesforce.com in many ways against some big companies and very popular products – Citrix’s GoToMeeting and Cisco’s Webex, in addition to IBM’s Lotus Live set of offerings. With its recent platform buy in Heroku, and this new move, it is funny to see Salesforce continue to add competitive concerns and look to enter in large markets where it has no clout, rather than look to live above the competition in one market where it already does well. Confident move?  Yes. Smart move?  Well, we’ll just have to wait…

And while the DimDim acquisition clearly places SFDC in competition with the likes of WebEx and GoToMeeting, Salesforce would like to look at this differently. Salesforce instead sees this as a pocket acquisition to bolster its Chatter functionality – a tool it is already basically just giving away to gain some stickiness for its actual paid apps. So, if SFDC does not really see much future for DimDim save for part of what is now a free add-on, then the $31m price was not a huge price to pay to make a cool new collaboration feature a little more robust.

But again, if Chatter is basically free at this point, why buy DimDim? The product was open source under the GPL. Couldn’t SFDC simply create an integration to the free tool and offer up that integration along with a simple installer to add video and screen sharing tools to Chatter?

I think the answer here is two-fold. One, I have not yet seen SFDC do anything that resembles open source. Yes, they have opened up their toolkits and platforms for developers, but everyone does that. There is just not that type of culture alive at SFDC in my opinion. This is a company steeped in the grand history of proprietary software.

The second reason (which is definitely intertwined with the first) is that due to SFDC’s multi-tenant model, adding DimDim-like resources without wholly owning the code would be problematic. As we know, in order for SFDC to really have a tight handle on anything its users touch, it has to run on its monolithic platform. This makes upgrades and other things easy, but does set limitations on how SFDC can go to market with technology it doesn’t own.

It will be interesting to see if the nature of a GPL licensed piece of software sitting inside a huge multi-tenant database has any effect on the way in which Chatter users are empowered to make, own and redistribute changes.

All in all, this is chump change for SFDC, and while it plots them theoretically against big names like Webex, I can’t see Salesforce actually making any huge headway into standalone video conferencing with the DimDim technology – most likely Salesforce.com will only relegate the functionality as a nice add-on to Chatter.