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Tom Greenberg

Salesforce.com and the SaaS CRM movement is hardly generating 7% of the total CRM spending worldwide, and that is the real reason they are not seen as competition by the Oracles and SAPs. The SaaS movement will become a threat eventually, but for the time being as you mentioned, the average SFDC customer has 20 or so seats. There are many on-demand crm providers : Netsuite, RightNow, Salesboom.com and Entellium, and if any of these will poses a threat to SAP and ORACLE, they will be bought out, and my bet is on Oracle taking over SFDC.

Ben Casnocha

Excellent analysis Jason. Thanks.

Jason C

Not sure about the percentage of SFDC wins coming against Sage, but it's clear that Sage is struggling in its CRM business. The most likely beneficiaries are SFDC and MSFT.

Sage got ACT! and SalesLogix via the acqutision of InteractCommerce, which in 2000, its last year as an independant company, reported $108 million in revenue (about 72 million GBP). For FY06 they just reported CRM of about 65 million GBP (and this includes revenue from Sage CRM and SageCRM.com, both gained with the acquisition of Accpac). I'm not a currency guy, so won't get into constant currency calculations, but no matter how you look at it this is less than a stunning success, especially for a company that a few years ago was boasting about a $1B+ CRM cross sell opportunity.

Jason Wood

Dennis,

Interesting that Sage ducked the question. My guess is, if "someone like me" asked the question, they would've said something predictable like "our competitive environment hasn't changed" or "we see them from time to time but not often." And in their worldview, those might be true statements.

Vinnie,

There are other vendors that I could've mentioned, but Zoho wouldn't have been one. If we're to call email and Excel competitors (as I have) than yes, any productivity app that involves contacts and workflow would be competitive, but that's too broad a swatch for a meager blog writeup. :)

Also, vendors like SugarCRM could be mentioned, but that's really an open source version of traditional CRM, so it falls into the "other" as far as I'm concerned.

Someone else asked why I haven't put Workday into the writeup having blogged about them quite a bit. The answer is simple...Workday isn't a competitor until they ship a competitive offering.

J

vinnie mirchandani

there is another category - those like Zoho CRM which will make salesforce.com look expensive...kinda an evolution of Office 2.0 functionality into the ERP/CRM world at those price points

Dennis H

Stonking post Jason. Sage admitted on the call that they are paying attention to CRM in the US market. They ducked the SFdC low ball question. What would have happened if they'd got someone like you or I on the call i wonder?

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