CRM- September 2008 - (Page 28) C E O , A D V E N T N E T, PA R E N T C O M PA N Y O F Z O H O SRIDHAR VEMBU BRAD WILSON GENERAL MANAGER, MICROSOFT DYNAMICS CRM, MICROSOFT the Steady We’ve said much about Brad Wilson over the years—and with good reason. As the general manager in charge of Microsoft Dynamics CRM, he’s been the person we look to whenever something’s happening at Redmond. His get-it-done approach and engaging attitude kept us interested as Dynamics endured its growing pains, and each year Brad’s been rewarded for his efforts: three straight years as one of our Influential Leaders. This year, Microsoft delivered version 4 of its CRM solution, as well as a much-in-demand on-demand option. Industry experts agree that the growing pains have ended, and Microsoft Dynamics CRM 4.0 is ready to take on all comers in the midmarket. To be fair, there’s a lot of CRM vision at Microsoft, as we saw in July’s interview with CEO Steve Ballmer (see “Is Microsoft Winning the CRM Race?,” July 2008). But Brad had a lot to say in that article as well, and it’s he who has to make Steve’s vision happen. In so doing, his impact continues to be felt throughout the CRM industry. Brad has now hit for the cycle—four Influential Leaders in a row. He’s the Lou Gehrig of CRM. —Marshall Lager the Penny-Pincher Sridhar Vembu is frugal. Employing more than 600 employees in Chennai, India—plus fewer than 20 in Silicon Valley—cutting costs comes naturally to the chief executive officer of AdventNet, the parent company of on-demand office suite vendor Zoho. With its inexpensive office software, Zoho cuts corners in unconventional ways. For instance, Vembu recruits engineers from low-income areas in India. He spends time training young engineers, often fresh out of high school, to aid in Zoho innovation. In his blog—remarkably open and blunt, an unusual trait for a CEO blog—he writes, “Based on a few years of observation, [AdventNet] noticed that there was little or no correlation between academic performance, as measured by grades and the type of college a person attended, and their real on-the-job performance.” Another revolutionary measure is that Zoho’s marketing efforts are slim to none. The organization relies mostly on word-of-mouth marketing and the “Try it free—buy it if you like it” approach. In his blog, Vembu points out that competitor Salesforce.com spends nearly eight times more on sales and marketing than Zoho does on development and research. (Did we mention he refused an acquisition offer from Salesforce.com cofounder, president, and CEO Marc Benioff?) “It takes a lot of guts to break with the tried-and-true formulas of the past and [set] a different course,” says Laurie McCabe, vice president of SMB insights and business solutions at AMI-Partners. McCabe notes that Vembu’s refusal of Benioff ’s overtures proves he’s focused on growing Zoho’s business, but not to a point where he wants to make it a “universal profit engine.” Zoho’s breadth is expanding—with 17 applications and four utility tools—yet the cost is still low. In fact,“low” is an understatement: Zoho CRM is free for up to three users; a subscription to the professional edition costs just $12 per month. The privately held company is making money, but Vembu won’t say how much—perhaps because profit isn’t his driving force.“I think [Vembu] has a really different take [on] and approach to things,” McCabe says, noting that Zoho and other free models are putting pressure on the “big guys.” “I think he’ll shake things up,” she says. In many ways, he already has. —Lauren McKay INFLUENTIAL LEADERS 28 CUSTOMER RELATIONSHIP MANAGEMENT | SEPTEMBER 2008 www.destinationCRM.com http://Salesforce.com http://Salesforce.com http://www.destinationCRM.com
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