The 2014 Gartner CRM Sales Magic Quadrant is now pubished. Sales application managers will find that improvements in the viability of SAP and Oracle cloud offerings underscore the evolution of traditional on-premises vendors to SaaS, but salesforce.com still leads the market. The magic quadrant evaluates vendors based on their ability to deliver Sales force automation (SFA) applications. SFA applications support the automation of sales activities, processes and administrative responsibilities for B2B organizations’ sales professionals. Core functionalities include account, contact and opportunity management. Additional add-on capabilities focus on improving the sales effectiveness of salespeople. Among those capabilities are sales configuration, guided selling, proposal generation and content management, and sales performance management support, including incentive compensation, quota, sales coaching and territory management.
by Robert Desisto | July 18, 2014 | 2 Comments
by Robert Desisto | July 14, 2014 | 2 Comments
The digital enterprise is increasingly a mobile enterprise. Business users and customers are showing a sharp interest in mobile devices and mobile applications. The future of enterprise applications, both for enterprise workers and consumers, is mobility. We have brought together IT perspectives regarding mobile from across Gartner Research in this comprehensive special report, The Future of Enteprise Applications in Mobility.
by Robert Desisto | July 9, 2014 | 1 Comment
Mobile technology will have the greatest impact on sales organizations since the introduction of the laptop more than 25 years ago. Mobile devices will increase sales force automation adoption and enable new value-added selling processes to improve sales effectiveness. The result will be an easier pathway for sales leaders to achieve revenue and business targets.
On Thursday, July 9th, at 9:00 AM EDT and 12:00 PM EDT, I will be conducting a webinar, Mobile Sales: Strategic Weapon for Meeting Sales Targets.
Key Discussion Topics Include:
- How mobile technology will impact sales force automation over the next three years
- How sales organizations will maximize the business value of mobility
- How mobility will drive sales force automation project planning and implementation
If you have interest in how mobility can reshape your selling organization this is a must see Webinar. Looking forward to seeing you there.
by Robert Desisto | June 23, 2014 | 2 Comments
I am not saying that SaaS or cloud computing resembles client/server technically but as it relates to maturity, SaaS is not a big deal anymore. Just like client/server, SaaS has gotten to the point where you can find multiple vendors in almost every application category . The cloud is no longer the “great” differentiator vendors would like you to believe it is, because it has become pervasive everywhere. I am not saying there are not business or architectural vendor variations, some of which may have real implications but generally those differences are very difficult for a customer to understand and evaluate. I even thought about not doing the SaaS Hype Cycle this year simply because it has gotten to the point where there are so many technology profiles that could qualify.
There are still some obvious cases such as large scale ERP deployments that are likely not good candidates for SaaS but generally speaking on premises only applications have become more the exception than the rule. This does not imply on premises is a dead delivery model. Issues such as data location, privacy, long-term TCO, and real-time integration performance all still lead many companies to on premises delivery. However, it is a fact that the shininess or glow of SaaS is fading as becomes more ubiquitous as an application delivery model.
by Robert Desisto | March 4, 2014 | 3 Comments
Microsoft released its latest core CRM offering, Microsoft Dynamics CRM 2013, in September 2013. After discussions with customers who have now had a few months to absorb the release the most impactful elements of the release are:
- Improved user experience
- The addition of more process capabilities
- The launch of the first Microsoft Dynamics CRM mobile application
- New pricing structures
Other updates include improved visualization of reports; platform improvements to improve extensibility, such as real-time workflow and actions designed to extend business process flows; announced server-side integration with Microsoft Exchange (available on-premises to on-premises only; online syncing to Microsoft Exchange is targeted for 2Q14). Microsoft announced new pricing with this release, moving from a flat $44 per user per month to a tiered pricing model ranging from $15 to $65 users per month dependent on usage type (e.g., full read-write access to all objects, read-only access for a subset of CRM-related objects, etc.).
I just published Gartner research, Microsoft Dynamics CRM 2013 Offers Improved Usability, Some Mobility, we analyze the most impactful parts of the Microsoft Dyanamics CRM core 2013 release including the new pricing structures for both on premises and SaaS.
by Robert Desisto | February 21, 2014 | 1 Comment
One of the top questions Gartner receives from clients evaluating salesforce.com is, why are salesforce.com services so expensive versus the competition? With the recent introduction of salesforce.com’s Performance Edition (see “Salesforce.com Announces New Comprehensive CRM Edition”), customers who would have purchased Unlimited Edition (no longer available) are paying 25% to 35% higher prices than they would have with Performance Edition. Salesforce.com does offer more functionality in Performance Edition, but not all customers need those capabilities.
Gartner has seen customer evaluations that indicate that salesforce.com can be as much as three times the subscription price versus that of the competition. In some cases, customers assume that if salesforce.com is that much more expensive it must be better. Gartner suggests that customers avoid equating price with value, a trait inherited from consumer buying habits. Functional differences between salesforce.com editions may be minor for particular customer solutions; salesforce.com has continued to hold their premium, particularly for larger enterprises. Over the course of hundreds of evaluations, we asked clients why they would pay such a premium for salesforce.com, and we have come up with five basic conclusions that we will explore in a just published research note (see When, and When Not, to Pay the Salesforce.com Premium). It was clear the customers who did not choose salesforce.com did not place enough importance on these reasons to justify salesforce.com’s price premium. This is research is a must read if your in the vendor selection or contract procurement process with salesforce.com.
by Robert Desisto | December 2, 2013 | 19 Comments
It has been popular to discuss the impending doom of on premise software business models. You often hear the on premise vendor’s dependency on large capital purchases make it difficult to transition to the smoother SaaS subscription revenue stream. There is no dispute there is an issue with on premise vendors looking to make the transition to SaaS. The real question is: Are the current crop of enterprise SaaS vendors vulnerable themselves?
The short is answer is, yes. The reason is the vast majority of vendors who offer SaaS in the enterprise market do so with a fixed term subscription basis. This means there is no ability for a SaaS customer to pay for what they use, something we commonly see with infrastructure as a service or in many lower end consumer or SOHO applications. This was supposed to be one of the foundational tenants of SaaS but has rarely been offered because SaaS vendors want large contract lock in. SaaS vendors were also supposed to be agnostic to the end of quarter or end of year deals. Clearly, in my experience of reviewing 100s of contracts a year, SaaS vendor salespeople behave just like their on premise ancestors.
The bottomline is SaaS vendors will resist to the move to “pay as you go” because it will have a very big impact on their business model predictability. However, all it takes is one viable vendor to figure out the “pay as you go” formula for applications in a market. Once it happens, we will begin talking about those legacy SaaS vendors tied to a dinosaur business model and the whole replacement cycle will start over again.
by Robert Desisto | October 16, 2013 | 1 Comment
In recent conversations with Gartner clients I was surprised to see clients are stunned that SaaS vendors do not provide ”Pay as You Go” contracts. SaaS contracts are typically per user per month price with a minimum annual or multi-year volume commitment with no ability to reduce users. In other words, if a you sign contract with a vendor for a 1000 users for a three year term, you will pay for those 1000 users over the term of the contract regardless of actual usage. In addition, clients are also surprised that a vendor often requires a pre-annual cash payment (again not all vendors but most).
I am not taking the vendors side but I clearly understand the vendor’s motivation. A SaaS vendor needs predictability in their revenue and want cash to fund future capacity expansion in front of demand. The fact is vendors are driven by maximizing shareholder value. Cloud purists like to site vendor examples where there is “Pay as You Go” and state vendors who don’t conform to this are not true cloud providers. Really? So does that mean salesforce.com and their billions of revenue is not cloud? I am not willing to go that far, in fact, if you look at most enterprise SaaS providers they do not do “Pay as You Go”.
The fact that the vast majority of enterprise class SaaS vendors don’t provide “Pay as You Go” is no reason not to use them. There are other benefits from SaaS such as time to market and agility. The point is one should not base their decision to move to SaaS because they believe they will gain flexibility that for the most part is not available.
by Robert Desisto | October 3, 2013 | Comments Off
I will be presenting on two exciting topics at the Gartner Symposium in Orlando, Florida the week of October 7. Look forward to seeing you.
My sessions are:
Creating Practical SaaS Strategies
8 October, 2013 (2:30 PM – 3:30 PM)
Software as a Service is at different maturity levels among varying software markets. Even the meaning of what is a SaaS application has morphed, creating confusion with potential customers. Our presentation provides clarity to the state of SaaS adoption across multiple software segments, and best practices for creating a successful SaaS strategy.
Mobility will Boost Sales, While Causing CIOs Headaches
10 October, 2013 (10:15 AM – 11:15 AM)
The presentation will provide advice on how sales organizations can move from a rigid, low batter life, heavy laptop based world to a world of endless mobile opportunity to boost sales performance while not compromising IT policies and procedures.
by Robert Desisto | September 20, 2013 | Comments Off
Gartner has released the 2013 vendor rating for salesforce.com. All 2012 ratings have been updated and new catagories have been added including Marketing Cloud, Communities, and work.com. The vendor rating was developed by a team of 12 Gartner analysts representing multiple application and service areas. It is a good read for both existing salesforce.com customers and salesforce.com prospects.