Small.Business.Marketing

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What the rumored HP deal with Salesforce means

HP to sign mega deal with Salesforce, may dump Oracle Siebel: analyst – International Business Times.

As a player in the small business CRM market (makers of Salesgenie CRM++ ), we rejoice. I will explain, but first a take on the story itself.

This could be a defining moment for Salesforce, for the cloud-based application providers (particularly enterprise applications like accounting, CRM and ERP) and for the CRM industry itself.

While it is easy to understand why I say this could be a defining moment for Salesforce and even for the cloud-based enterprise application providers; why do I say this is a defining moment for the CRM industry itself?

To get my logic, read this from the article in IBT:

Both Oracle Siebel and Salesforce offers customer relationship management (CRM) software for businesses. The work of CRM involves focusing on service automated processes, information gathering and processing, integrating and automating various customer serving processes in a company. It also manages to keep track of customer preferences, buying habits, deals with service requests, information requests, complaints etc.

The key difference between Oracle Siebel and Salesforce solutions are Siebel is more sophisticated but complicated to use , where as Salesforce.com have better graphics, easier to train employees but not as comprehensive.”

The essential point is simplicity vs complexity. And usability vs flexibility.

Agreed, Oracle might be losing the account because HP and Oracle’s recent fall-out over the firing of Mark Hurd by HP and subsequent re-hiring by Oracle. But, would HP be taking, what is after all a huge business decision, without being confident that they not going to lose anything? After all, if this was a simple matter of teaching Oracle a lesson, why not move to SAP, who have a comprehensive CRM offering as well? After all, their newly hired CEO, Leo Apotheker was from SAP.

The financial savings are substantial- HP will save money switching from Oracle to Salesforce. But, more importantly, it will discover, and I am sure HP CEO Apotheker bets on the increased ease of use, easier customization and upgrades that comes from moving to a SAAS platform as of huge importance in making its sales team adopt and be proactive on the new platform.

Why do we rejoice in this rumour? Because of 2 reasons:

1. This proves, once for all, that SAAS can be and is mainstream.

2. More importantly, as Salesforce moves into the space occupied by the big daddies like Oracle and SAP, we the smaller, niche CRM players like Salesgenie CRM++, will move into the market that Salesforce will find difficult to serve.

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