CRM - March 2008 - (Page 20)

SaaS X.0? The next wave of on-demand computing may just be another trendy “2.0” label S oftware-as-a-service (SaaS) has been around for a while—since the first application service providers. But the last few months have showcased the on-demand delivery model’s pull within business computing: NetSuite made a splash with its public offering (see “NetSuite’s Sweet Ride Takes Another Turn,” page 19), Salesforce.com continued to popularize cloud computing, and Oracle’s Larry Ellison—an investor in both firms—publicly questioned the value of subscription-based software. It’s been an attention-grabbing few months. But where does SaaS go from here? What more can be accomplished with online delivery, and can a new breed truly be a departure from what came before? Is 2008 going to be all about SaaS 2.0? “I don’t know if we can draw a clear line of demarcation between SaaS 1.0 and 2.0,” says Jeffrey Kaplan, managing director of SaaS consultancy THINKstrategies. “There’s been continuous, ongoing improvement.” Still, the overused digital suffix seems to have a lot of currency. “The 2.0 idea has been used [a lot],” Kaplan says. “We might be on 3.0 now.” Developers of on-demand applications processes for customers through a suite have a take of their own. “I admit to a play, deep integration, or partnerships.” That echoes Kaplan’s findings. “Cusbias, but I believe SaaS is not just here to stay, but will only continue to evolve and tomers are not only accepting SaaS within gain momentum,” Chris Cabrera, CEO of horizontal applications, but vertical ones on-demand compensation management as well; point solutions as well as platsolutions provider Xactly Software, said forms. There’s more recognition of chanin a statement. Research from Gart- nel opportunities with SaaS now,” he says. ner/Dataquest backs up his claim: An “There’s going to be big, big change.” In attitude, as well: “SaaS has been August 2007 report on the enterpriseapplication market predicted a com- adopted in an uncontrolled fashion by pound annual growth rate for SaaS of business units, and IT has been resistant, 22.1 percent through 2011, twice the rate reluctant, or concerned about SaaS’ reliexpected to be seen in the overall ability, security, and performance,” Kaplan says. “They will realize enterprise-software market. they can’t resist it, and new “Clearly, something is ticking What more can be SaaS solutions [will] aim to out there,” Cabrera said. accomplished with help IT do its job, and solve Cabrera also said we’ve important issues such as only seen first-generation online delivery, and SaaS solutions (though many can a new breed truly compliance, archiving, backups, and disaster recovery.” vendors would argue otherbe a departure from In short, hype is no longer wise).“The limited functionenough.“SaaS providers must ality in many of these solu- what came before? prove their own viability,” tions was criticized by the market and customers as not being as Kaplan says. “The selection criteria are robust as their enterprise counterparts,” the same as with any enterprise applicahe said.“In 2008 we will see SaaS compa- tions: It’s got to be a good product, from nies partnering or building out more ro- a financially viable company, and part of bust solutions or platforms (much like a network or ecosystem.” Cabrera’s enthusiasm refuses to be Salesforce.com’s Force.com platform).” As one of Salesforce.com’s AppExchange repressed: “Love it—like Marc Benioff— partners, Cabrera would know. “In 2007, or not—like Larry Ellison—2007 forewe saw the delivery of mashups combin- shadows how SaaS will continue to burn ing data and functionality via single sign- a hole right through traditional enterprise on in SaaS applications. In 2008 we will see software models through the end of the SaaS companies supporting end-to-end decade and beyond.” —Marshall Lager destinationCRM Dashboard • Mismanaged Lead Management Salespeople are supposed to pay attention to the needs of their prospective customers, but they don’t appear to be considering their lead management systems. Research from the Sales Lead Management Association (SLMA) shows that nearly 69 percent of companies surveyed in its second annual Sales Lead Management Study don’t qualify inquiries before distributing them internally or to their channel partners. “Why is sales lead management ignored by some and championed by others,” writes Mark Friedman, executive vice president of SLMA and report author, in his introduction to the study results. • Email Marketing to Reach $2.1 Billion by 2012 New York-based market research firm JupiterResearch announced that it predicts domestic spending on email marketing will have a com- pound annual growth rate of 11 percent during the next five years, increasing from $1.2 billion in 2007 to $2.1 billion in 2012. Email continues to be a favorite channel among marketers and will continue to play an important role in the industry, according to the report. This five-year roadmap of email’s growth is based on JupiterResearch’s own email forecasting model and the insights of company analysts. Judging by the projected rise in spending, email will likely remain a strong channel of communication between companies and consumers. The increase in email budgets, however, does not seem to be taking away from any other marketing channels. • 7 Essential Customer Service Processes Most books on customer service nowadays state that it is neither a department in a business nor a cure-all technological solution that will make customers love the products and services they receive; it is a philosophy that must come www.destinationCRM.com 20 CUSTOMER RELATIONSHIP MANAGEMENT | MARCH 2008 http://Salesforce.com http://Salesforce.com?s http://Force.com http://Salesforce.com?s http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - March 2008

CRM - March 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Re-shoring Contact Centers NetSuite’s Sweet Ride Takes Another Turn SaaS X.0? destinationCRM Dashboard Retailers Dream Big Detroit: Driven to Distraction Required Reading The Markets Within the Masses In Search of... Selling CRM to Your Sales Force Quixtar’s Quick Fix Travelocity’s New Traveling Companion Chasing Down First-Call Resolution Governing Better Marketing Secret of My Success Re: Tooling Connect Pint of View

CRM - March 2008

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