Hosted CRM

Hosted CRM is an arrangement in which a company outsources some or all of its customer relationship management (CRM) functions to an application service provider (ASP). The hosted CRM model is said to increase return on investment (ROI) by decreasing costs and allowing a company to focus more resources on its main business areas. In-house CRM, on the other hand, while more expensive, is also said to allow more customization. Companies offering hosted CRM include Siebel,, and UpShot. The hosted CRM model is most prevalent in small-to-medium size companies, especially those who don't already have well-established CRM processes. According to a study from Nucleus Research, over 80% of companies that outsourced CRM achieved a positive ROI. The study reported that problems with the traditional in-house CRM model include high software and consulting costs, ineffective user adoption, and poor management. However, because in-house CRM can be tailored more specifically to the particular needs of an organization, most larger companies opt for the traditional model.

Salesforce’s cloud computing strategy pushes forward
Like many customers, Michael Walsh, vice president and chief information officer of D-Link Systems Inc., considers himself a big fan of his vendor and said he is “extremely happy” with the company’s direction and cloud computing strategy. But there are moments when Walsh said he hopes Salesforce isn’t doing too much, too fast. “You don’t want them to lose sight of what they are,” he said. Walsh is not alone. Based on a dozen interviews with IT executives, marketing and sales managers and industry analysts over the past several weeks, it is clear that many are wondering just how will continue to be the nimble and innovative company

com Microsoft • What Enterprise Marketing Automation applications do you have installed? • Unica SAS • • • Siebel/Oracle SSA Global . • • • • • • • What ERP solutions do you have installed? SAP Oracle Epicor Microsoft Biz solutions SSA global Role in Purchasing: • Determine Need Evaluate products/services • • • • • • Recommend and specify products/services Implement products/services Technical decision maker Financial decision maker What sales force automation applications do you have installed • SAP Siebel/Oracle • • • • Sage Salesforce.that once thumbed its nose at the software establishment now that it is transforming into a corporate giant.

com What Contact/Call Center infrastructure do you have installed? • • • • • • • • • • Aspect Avaya Cisco Genesys Interactive Intelligence Mitel NEC Nortel Siemens Salesforce’s cloud computing strategy pushes forward .• • • • Microsoft Eloqua Other Neolan What Contact center servicing applications do you have installed? • Amdocs Art Technology Group • • • • • • • • Graham Technology Oracle/Siebel/People Soft Onyx PegaSystems RightNow SAP Salesforce.

Salesforce CEO suggests you can’t do it all But in an earnings conference call following the release of its financials. But there are moments when Walsh said he hopes Salesforce isn’t doing too much. Michael Walsh..Like many Salesforce. Salesforce’s chairman and CEO. the company revealed another growth quarter. For more on Salesforce. vice president and chief information officer of D-Link Systems Inc. reporting revenue of $504 million for its first quarter of 2012. but it is following an inspiration. it added strategy. considers himself a big fan of his vendor and said he is “extremely happy” with the company’s direction and cloud computing strategy. On May 19. marketing and sales managers and industry analysts over the past several weeks.. When asked if the company’s acquisition earlier this year of Radian6 would morph into a new marketing cloud. but it is not a priority. bringing the total base to 97. “It is as if Salesforce is saying.” he said. it is clear that many are wondering just how will continue to be the nimble and innovative company that once thumbed its nose at the software establishment now that it is transforming into a corporate giant. too fast.” There is no question the company is on a roll. as he described the strategies Read about its database strategy Find out about mobile CRM Learn how to start a Salesforce CRM project “It isn’t haphazard or random in any customers.” said Michael Maoz. Benioff said it eventually would. Based on a dozen interviews with IT executives. implied Salesforce could be reaching a critical juncture where expansion plans need to be very carefully evaluated.000. but I am building a new highway. . What’s more. Walsh is not alone. “You don’t want them to lose sight of what they are. distinguished analyst with Gartner Inc.400 new customers to its roster. Marc Benioff. I don’t know what my last mile is.

com." said Sean Whiteley. in an interview earlier this month. .“Honestly. “We are very cautious about doing that because if we go ahead and build that out right now.” “We are definitely moving fast and we’ve made a lot of changes. which was acquired in April 2010 for $142 million. what will suffer? Will we have our eye of the ball in one of these other critical areas. It is understandable that it is hard to keep up. • “The platform is almost 11 years old. a creator of a Ruby application platform.. a maker of social media and monitoring tools.” Customer react to Salesforce’s pace The trick for some customers is to figure out what their next CRM move should be based on the roadmap Salesforce is presenting. the problem is we are in a lot of things already that are hot. they are the oldest. • Dimdim. which was purchased for $31 million in January. • Heroku.’’ Benioff’s comments could appeal to customers who have been concerned about the sheer volume of initiatives under way at Salesforce. For example. The acquisitions are injecting new life. such as Ray Wang. which was picked up for an undisclosed amount in February. the company has snatched up several companies in a string of acquisitions over the last 12 months. a provider of so-called crowdsourcing technology to manage business contact data. a senior vice president of marketing at acquisition strategy is smart.’’ Benioff said about the idea of launching a marketing cloud. but that is to respond to major disruptions in our industry. a developer of Web productivity apps. “Our job is to make sure our customers don’t get left behind. which was purchased for $326 million in early 2011. a maker of communications software for real-time collaboration and communications. • Manymoon. which was purchased for $212 million at the close of 2010. including: Radian6. • Jigsaw. believe the Salesforce. Some analysts.” said Wang. rather than leaving it to developers who could take longer. “In the world of the cloud. CEO and principal analyst at Constellation Research Inc.

but how to manage it along the way is what I could use more of... “We aren’t Ruby on Rails.” de Silva said. On the other hand. the company’s annual user of Fort Lauderdale. a Salesforce user and vice president of marketing at OraMetrix Inc. in Richardson. Do the driving yourself Some Salesforce. a senior vice president and CIO at Ultimate Software in Weston. Fla. the rapidly evolving nature of Salesforce’s business model can be challenging. his company uses Flow for Salesforce. Chatter is an internal social network that resembles Facebook and allows for the sharing of content. It isn’t always clear. Barry Newman.” he said referring to the Heroku platform. a tool that enables employees to create and script workflows. Hicks said that in addition to the Salesforce.” de Silva said. “so we will probably never look at that.” While attending a session last year at Dreamforce.For Dan de Silva.” and the concept of a complete platform from a single vendor meets his business customers suggest that the best way to deal with the company's rapid growth is to get in the driver’s seat and not let the vendor dictate how it will move forward with their CRM plans. “I have a sense of the endpoint. Fla. said a key appeal to Salesforce. senior vice president of information technology at Saveology. but has taken a different approach. Bill Hicks. I would be thinking about my content library differently than I do today. said he likes the broad platform of tools and application that Salesforce is creating because it enables him to “pick and choose. For example. de Silva said he interpreted a presentation to say that Chatter is the preferred content manager in the Salesforce environment. Texas. “If I hadn’t sat in a session.” Another user agrees about being in the driver’s is it is a “one-stop shop. ‘Where do we want to leverage their platform?’” Hicks said. “We think the Flow is great for us.” Hicks added. “It is happening so fast and so core application platform.” “We’ve taken the approach of. .

” Pattishall said. “It is more than we could possibly’s cloud-based database technology and the veteran database administrator (DBA) doesn’t expect that stance to change anytime soon.The Salesforce.-based developer of games and advertising products for social media. but it is definitely the right way to go. but it will take more than headlines to win the business of some IT strategy “is a lot.” he generated a great deal of media coverage when it announced plans to release Database. much more reliable and in my Calif. sometime next year. IT industry analysts and end users say the company needs to demonstrate high levels of’s plan to launch a cloud-based database in 2011 Get the lowdown onSalesforce. For more on cloud-based database technology Read more about Salesforce. “I have yet to see any sort of real-world [cloud-based database] solution that [operates] at a relatively low cost without a bunch of tie-ins to various . They know they want to be a’s cloudbased database enters the proving grounds Salesforce.. While Salesforce.” Salesforce. a Redwood City. Pattishall said he has no interest in’s cloud strategy Learn more about emerging database technologies “I have the ability to build a cloud-based solution myself [that is] much to be successful against stiff competition from Microsoft and others. the chief architect at RockYou Inc. a fully functioning cloudbased has a proven track record in customer relationship management (CRM). reliability and cost-effectiveness if it wants Database. But even that may not be enough to pique the interest of technology workers like Dathan Pattishall.

‘What about BigTable and SimpleDB from Google and from Amazon?’” Feinberg revealed plans to unleash Database. But organizations interested in the technology need to weigh those benefits against privacy. according to Donald Feinberg. it will join Microsoft SQL Azure as one of only two product offerings that can truly be called cloud-enabled DBMSs. Understanding the cloud-based database marketplace The benefits of cloud computing and cloud-based databases can include reduced costs and advanced will support multiple development languages and is geared toward organizations that want to create new applications for social media. a vice president and information infrastructure analyst with Stamford. Gartner defines the phrase “cloud-enabled DBMS” as a hosted DBMS cloud service that offers multitenant elasticity and is used as a shared resource by independent user organizations or applications. experts say. security and latency concerns. “But those are . When becomes commercially available next year. Company officials said the new cloud-based database management system (DBMS) essentially consists of the same Oracle database that the company uses for its hosted CRM chairman Marc Benioff said in statement. The technology is currently not being marketed as a replacement for existing in-house DBMS implementations from the likes of Oracle and IBM. mobile and social.” Salesforce.” and an excess amount of overhead that I would have to do personally to get it to work.-based Gartner Inc. mobile devices and other scenarios. but with a softwarebased wrapper on top of it that provides additional management and security features as well as multitenancy. IT industry analysts said that it’s also a good idea to get a strong handle on the often confusing cloud-based data management market before moving forward with any investment decisions. “The next question people ask is. says Database. Conn. “We see cloud databases as a massive market opportunity that will power the shift to enterprise applications that are natively at its annual Dreamforce user group meeting last week in San Francisco.

Feinberg said that organizations using should also be aware of Salesforce. But many DBAs will view the increased automation associated with cloud-based DBMSs as more of a blessing than a curse. some DBAs worry that their jobs will eventually go the way of the milkman.” he said. “So.Salesforce. those are contractual issues that we would warn people just to watch out for.relaxed-consistency files systems and they are not DBMSs. it’s not elastic and it’s not multitenanted. both companies would argue with me. but you cannot do complex transactions with either of those systems.” Will cloud-based database automation lead to fewer DBA jobs? Whenever a new technology comes along that increases levels of DBMS’s cloud-based application development platform -. according to experts. but you sign a one-year contract and there is no out clause.” he said. Mass. cloud-enabled DBMS.” Companies that decide to move forward with an investment in Database. . “Amazon RDS is basically an implementation of MySQL on] are described as monthly charges.-based Forrester Research Inc. “It is not a cloud service. “I also believe that most of their contracts [including those governing the use of Salesforce.” Feinberg said. “But it may be surprising to people. “Is the latency going to be so bad that organizations can’t use it? I doubt’s historical approach to service-level agreements (SLAs). Now. Most organizations expect slight delays in performance when running applications on mobile devices such as iPads or smartphones. a data management expert and analyst with Cambridge. according to Noel not receive SLAs for performance.” Beware of latency and read the fine print Organizations considering a cloud-based database should also be aware of latency issues that can arise as a result of connecting applications to a DBMS over the and -. but that same amount of latency could be disturbing when sitting at a regular old desktop station in an office cubicle.” Feinberg added that Amazon RDS is another product that is frequently mistaken for a true.

” Yuhanna said.” . “[Cloud-based databases] in fact will help them put more focus on mission-critical databases that need more attention.“DBAs are already doing more than what they should be doing.