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Dec 22 2009   2:00PM GMT

The top CRM stories of 2009



Posted by: Barney Beal
social crm, CRM and Web 2.0, call center software, Microsoft, Oracle, SAP, Salesforce.com

As 2009 draws to a close (thankfully), it’s time, as we do every year, to look back on some of the major developments in the CRM market.

This year is not as easy as some. Gone are the heady days of CRM news, like in 2005 when all this took was throwing acquisitions, such as the Aspect-Concerto and Oracle-Siebel deals on a list, on a list with innovations, like CDI and Microsoft CRM 3.0. Even the top CRM stories of 2008 were easier to define.

But while the year was light on major acquisitions and suddenly-hot technologies, it was not without its shake-ups and developments. With the dust slowly settling on the market leaders and the major suite vendors firmly in place, 2009 became a time for everyone, including users, to regroup and map out where they’re headed. We start with the vendors:

Microsoft grows up

The year saw Microsoft CRM add its one millionth user and take Microsoft Online international. With the recession looming over 2009, Microsoft also took the opportunity to target Salesforce.com and Oracle CRM On Demand users with a special price promotion. It wasn’t alone either. Obviously sensing that price was a competitive differentiator, Microsoft and SugarCRM both took steps to make CRM cheaper, simpler and cloudier.

SAP heads for the clouds

Meanwhile, SAP’s roadmap took a familiar turn. The applications heavyweight announced plans to not only roll out its full SaaS-based business suite Business ByDesign to full production, but to add multiple business applications on-demand including sales automation, travel and expense and services management. However, for all its commitment to on-demand, SAP had very little to say about its existing on-demand CRM product. Neither did anyone else.

It may not matter. Some customers are obviously happy with SAP’s existing CRM applications. Coca-Cola is using SAP CRM to roll out the ordering system for its new beverage dispenser.

 Oracle straightens out its CRM roadmap

Oracle, tied up for years bringing together the spoils of its acquisition spree under the Fusion Applications umbrella, made some headway in 2009, announcing that the first set of Fusion Applications will be released this year, including sales and marketing modules. Oracle’s CRM roadmap includes a heavy dose of social CRM as well as long-awaited features such as running Siebel in Outlook. Paul Greenberg shared his take on the CRM roadmap and Siemens seemed to be happy with Oracle’s CRM direction. Siemens dumped a number of SAP projects in hopes of standardizing its CRM systems on Oracle.

Salesforce makes a platform push

 Cisco for a contact center in the cloud and pushing its Service Cloud, which features Twitter integration. CEO Marc Benioff spared no expense on marketing it, buying up a huge booth and staging a presentation at Oracle’s own conference.

But it wasn’t all just about the vendors.

“Cloud” gets a little cloudier

Confused about the difference between hosted, on-demand, SaaS and cloud applications? Direct your frustration to the man cited above (who is now calling Salesforce.com a “cloud company”). But it’s not just Benioff. Sage and Consona announced plans this year that will add a little more to the cloud CRM confusion. With the emergence of offerings from Amazon, Microsoft and others, it’s now possible to own the software but rent the infrastructure. It’s only getting more complicated.

Users test out their social CRM strategies

Clearly, the term of the year goes to “Social CRM,” thanks largely to the vendor and analyst community (more below) that have helped push the term beyond the early, simpler days when it was called CRM and Web 2.0 or social networks. For all the hype and confusion, 2009 marked a year when businesses started listening and formulating a strategy around social CRM. For example, Xerox embarked on a social media monitoring program and JellyVision Labs has begun leveraging social networks to help it sales forceSearchCRM.com also managed to add a couple columnists to help readers sort through the noise. Allen Bonde has been writing about social CRM from the marketing perspective while Paul Greenberg is tackling real world examples of social CRM and the strategy behind them.

CRM software sellers get social medicine

If 2009 was a year in which businesses began experimenting with social CRM, it was also the year the vendors in the market jumped in with both feet. RightNow bought HiveLive to round out its social offering, NetSuite partnered with InsideView to get social with its CRM and ERP suite. Salesforce.com, not only added integration to social networks via the Service Cloud, it promised to deliver a collaboration platform with Chatter. Again, SearchCRM.com turned to Paul Greenberg who compared several of the emerging social CRM products.

And the No. 1 CRM story of 2009?

Remember “doing more with less,” that trite little term that meant management still wanted you to work as hard, get as much accomplished, and bring in as much revenue, only with less resources? Well that had CRM practitioners focused on…

Saving money

There was no shortage of advice on how to save. Gartner offered both five low cost contact center infrastructure projects and five low-cost CRM strategies. Forrester suggested ways to mine more value from existing CRM implementations while others started to see CRM outsourcing as more attractive. Marketing got in on the action as well. Forrester analyst Suresh Vittal suggested the recession could reshape MRM and marketing while Gartner suggested now might be a good time to buy MRM.

Others may argue there were bigger stories or more important developments (and we welcome that feedback), but from our perspective that was the best of 2009. Here’s hoping 2010 is a little easier and a lot more profitable.

Oct 13 2009   1:13AM GMT

Oracle CRM veterans offer a few innovative deployment tips



Posted by: Barney Beal
Oracle, Siebel, CRM implementation

I’m out in San Francisco for Oracle OpenWorld and found a few items of interest aside from the news that Marc Benioff is crashing the party.

I plan to be there tomorrow at Benioff’s session to see if he plays the polite guest (my guess is he will), but in the meantime, there were a few interesting tidbits from some successful CRM deployments at a customer panel.

These are not necessarily Oracle-specific but some practices I hadn’t seen before and worth noting here.

Continued »


Jul 22 2009   1:44PM GMT

Gartner releases CRM market share report and SAP leads, but how much does it matter?



Posted by: Barney Beal
CRM market share, SAP, Oracle, Salesforce.com, Microsoft CRM, innovation

Gartner put out its estimates for the CRM market last week and SAP has the largest market share, according to the Stamford, Conn.-based research firm.

So what?

My general experience in covering the CRM market over the last several years the “leading” vendor in the market matters far more to financial analysts and the vendors themselves and than anyone buying or using the software. What matters to CRM buyers and users is that their vendor is viable, innovating the product Continued »


May 14 2009   7:13PM GMT

Where’s SAP’s CRM message?



Posted by: Barney Beal
SAP, Salesforce.com, Oracle

For a company that proclaims itself the leader in CRM, it sure didn’t have much to say about the subject at its recent Sapphire conference in Orlando.

SAP released its Business Suite 7, which includes a new CRM update, in February. But you wouldn’t have known it listening to the keynotes this week. While last year’s conference featured some significant news with SAP’s partnership with RIM to run SAP CRM natively on the BlackBerry, this year featured nary a word about CRM.

Continued »


May 1 2009   8:03PM GMT

Is Salesforce.com simply shifting its maintenance to partners?



Posted by: Barney Beal
Salesforce.com, maintenance, Benioff, SAP, Oracle

Denis Pombriant has an interesting note on his blog today.

He says that effective today, Salesforce.com will start charging its partners for support.

Denis writes:

Effective May 1, 2009 and with a 60 day grace period, Salesforce.com will begin charging its developer partners for support.  I have not seen a press release but I have a data sheet on the offering.

And

The grace period starts today and the fees start July 1, 2009.  There will be three levels of service - Partner Premier, Partner Basic, Single Cases and Community.  Fees range from free to $24,000.

Given Salesforce.com CEO Marc Benioff’s pronouncement earlier this week of “The End of Maintenance” it would certainly appear that instead of turning to customers to boost its margins, Salesforce.com is instead turning to its partners. Oracle CEO Larry Ellison and many an SAP executive have long maintained that the SaaS business model can be very difficult to turn a profit with. One would imagine it’s especially difficult if you can’t charge those maintenance fees of 22% of net licensing as Oracle has always done and as SAP will eventually do once it clears up these KPIs with SUGEN. Dennis Howlett over at ZDNet posted a blog entry yesterday citing research being conducted by Jason Carter noting that companies are no longer getting their money’s worth out of maintenance. He posts a chart showing a radical decline of research and design spend as a percentage of maintenance revenue.

Is Salesforce.com just shifting the costs?


Apr 30 2009   7:05PM GMT

Benioff joins the software maintenance fray



Posted by: Barney Beal
software maintenance, Oracle, SAP, Salesforce.com, Benioff

There’s been a bit of a brouhaha in the blogosphere over software maintenance fees this week.

The Salesforce.com CEO got things started when an internal corporate memo was “leaked” to members of the press and analysts, notably Vinnie Merchandani and Chris Kanaracus at NetworkWorld.

Here’s an excerpt from Benioff’s email:

Let me tell you about a customer that I met on our Cloudforce tour. This customer currently uses Siebel software to run her call center.  She pays more than $15 million a year for the privilege of having to implement the updates that Siebel sends her.  That does not include backup. Or disaster recovery. And of course, it does not guarantee that she will be using the latest technology.  The maintenance agreement only assures her that her outdated software will continue to work.  She is paying tolls on a road to nowhere.

Continued »