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Question: Salesforce.com is the most successful enterprise-


Salesforce.com is the most successful enterprise-scale software as a service (SaaS) and the undisputed global leader in cloud-based customer relationship management systems. Users can access Salesforce applications anywhere through an Internetenabled mobile device or any online computer. Subscriptions start as low as $15 per user per month for the pared-down Group version for small sales and marketing teams, with monthly subscriptions for large enterprises starting around $65 per user.
Salesforce has over 92,000 corporate customers. Small businesses find the on-demand model especially appealing because there are no large up-front hardware and software investments or lengthy implementations on corporate computer systems. Fireclay Tile, a small sustainable tile manufacturer that converts recycled materials into handmade ceramic tile, adopted Salesforce and realized multiple benefits. Salesforce’s e-mail and Web-to-lead capabilities helped the company quadruple new sales leads. (Web-to-lead automatically adds leads collected from the Web to the company’s master database.) A task feature automatically generates specific tasks based on the type of lead (architect, contractor, dealer, or homeowner) and the stage in the sales process. The system automates customer service functions including order confirmations, follow-up customer satisfaction surveys, and shipping notifications. Customer satisfaction and productivity have soared.
But Salesforce.com also appeals to large companies. Dr. Pepper Snapple Group adopted Salesforce CRM to replace an outmoded Excel application that required extensive manual data input to compile reports on more than 50 beverage brands and to track sales performance against objectives in real time. The system now tracks field activities for more than 10,000 accounts, with automated reports and dashboards monitoring key performance indicators, sales calls, and sales volume. Siemens, the Wall Street Journal, Pitney Bowes, and Starbucks and are among Salesforce’s other large corporate CRM users.
Not to be outdone, established enterprise software companies such as Oracle have moved into cloud software services. Pricing starts at $70 per month per user. Oracle’s CRM on Demand system has many capabilities, including embedded tools for forecasting, and analytics and interactive dashboards. Subscribers are able to use these tools to answer questions such as “How efficient is your sales effort?” or “How much are your customers spending?”
Bryant & Stratton College, a pioneer in career education, used Oracle CRM on Demand to create more successful marketing campaigns. Bryant & Stratton analyzed past campaigns for tech-savvy recent high school graduates, as well as older, non-traditional students returning to school later in life. Oracle CRM on Demand tracked advertising to prospective students and determined accurate costs for each lead, admissions application, and registered attending student. This information helped the school determine the true value of each type of marketing program.
While traditional enterprise software vendors like Oracle are using their well-established position to penetrate the cloud-based application market, newcomers like RightNow and SugarCRM have found success, even among larger companies. For example, camera manufacturer Nikon decided to go with a cloud-based solution as it attempted to merge customer data from 25 disparate sources and applications into a single system. Company officials were hoping to eliminate maintenance and administrative costs, but not at the expense of a storage system that met their requirements, was never out of service, and worked perfectly.

1. What types of companies are most likely to adopt cloud-based CRM software services? Why? What companies might not be well-suited for this type of software?
2. What are the advantages and disadvantages of using cloud-based enterprise applications?
3. What people, organization, and technology issues should be addressed in deciding whether to use a conventional CRM system versus a cloud-based version?


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