CRM - July 2008 - (Page 33)

MYTH THREE: SAAS LEAVES THE TECHNOLOGY STAFF HIGH AND DRY Yacov Wrocherinsky, founder and CEO of New York–based CRM consultancy Infinity Info Systems, says that the idea that the average corporate technology department throws its hands up once an on-demand solution is adopted is completely false. Deployments, he says, vary as businesses do.“It’s not just buying the software, it’s how you use it,” he says. “It still requires tailoring and customization. It depends on [the] type of business. The hosted option is only a way of acquiring the technology. Everything else requires support.” Wrocherinsky says that a hosted or SaaS model obviously frees up the tech staff to do other things, but it still requires time, maintenance, and attention. What it comes down to is customization—and with that, IT is involved more than ever. “IT is an enabler for enhancing the rollout plans across the enterprise,” Roy says. “The business can start the process, but IT needs to be a partner to jumpstart the adoption and the unity.” On the same note, Harrick says, “When you get into the enterprise it’s just not true [that IT has no role]. It begins to resemble traditional software. Including IT in the implementation in deployment is absolutely critical.” MYTH FOUR: THE PRICE OF BAIT— SAAS IS ALWAYS GREENER “SaaS” and “low-cost” are often viewed as synonyms. However, when looking at the long term—say, five years—does SaaS really equal savings? Harrick says that on-demand is not necessarily cheaper in the long run. He warns companies looking at on-demand to take a good, hard look at versioning and functionality when evaluating vendors. He also suggests taking a peek at vendor in- vestment.“Look at how much [the] vendor is investing into research and development, which really does make the product better,” he says. “Look at where the investment is going—is it going into sales and marketing? Or into development [and] trying to build a great model with servicing?” (For more on this, see J. David Lashar’s The Tipping Point column, “The Hidden Cost of SaaS,” May 2008, page 14.) From Roy’s perspective, enterprises know that the SaaS solution is not really cheaper. “They do believe that it’s a quicker time-to-value option,” he says. In another Forrester Research report by analyst Liz Herbert, several additional pricing factors are mentioned that enterprises must take note of when considering vendors and evaluating costs: Subscription fees: Most providers charge for maintenance, upgrades, and a level of customer support. Often vendors provide discounts for a large number of signees and for paying upfront. Implementation: Most SaaS companies offer low, quick-start implementation costs, but high-level customization can rack up a hefty price tag. Additional ongoing charges: Some SaaS companies charge for mobile use, mobile support, offline access, increased storage capacity, or even amplified customer support. Be wary. Training and help desk: Highly customized SaaS adopters often require custom training materials. Value-add services: Some on-demand providers offer additional services based on their tool or business process expertise, for instance, benchmark reports, quarterly health checks, and configuration-as-a-service. Get ready, ’cause here it comes: the dreaded word—recession. Analysts and experts seem to agree on one thing— SaaS remains recession-proof. As the economy worsens and large companies THE Essential Guide for Maximizing Your Customer Relationships By Barton J. Goldenberg 384 pp/softbound/$39.95 ISBN 978-0-910965-80-4 “Vital real-time business advice for the customer-centric organization.” —Stan Davis, co-author, The Art of Business and Blur Ask for CRM in Real Time in Your Local Bookstore or Order Direct From the Publisher www.infotoday.com http://www.infotoday.com

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

CRM - July 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point CRM’s a Social Animal SAP Looks to ‘Change the Game' CRM on Twitter CRM to the Max A Prescription for Satisfaction Required Reading Cover Story: Is Microsoft Winning the CRM Race? Jumping into the SaaS Pool Say What? Another Bright Idea Out of Edison A Small Biz Blossoms Biting Off the Right Amount Something for a Rainy Day Connect Re:Tooling Pint of View

CRM - July 2008

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