Wednesday, February 14, 2007

Why Will Win (CRM)

Oracle? SAP? What do these companies have in common? For one, they have failed to fully embrace the on-demand software model. This model, known as Saas (software as a service) is making the old model completely irrelevant in today’s on-the-go and increasingly mobile world. Sure, Larry Ellison is the godfather of relational databases in for modern business, but hoards of ex-Oracles have fled the Redwood Shores for, where the “End of Software” is near. In his usual bellicose manner, CEO and Founder Marc Benioff, has set out to take on his former boss at Oracle. With the stock up over 200% since, the IPO and spectacular subscriber growth, there is no doubt that software on-demand is in high demand. is a best of breed in this new generation software model. It’s my expectation that their excellence in customer relationship management will expand into other areas, notably accounting, web analytics, and online marketing management.

What to Expect:

1. CRM will gain market share in the customer relationship management area faster than expected simply because they have identified customer pain points and provide a functional and effective tool
2. The App-Exchange or APEX will generate significant network externalities. As other developers generate applications for the CRM platform, the value of switching to CRM will increase. Nice history lesson: Apple and Microsoft. Who’s got the marketshare?