July 2006 Archives
Dominating Business Web 2.0
July 14, 2006   By: Chuck Russell

Salesforce.comSalesforce.com has changed the way we think about application development in the era of  Business Web 2.0. Generally available since late last year, AppExchange the on-demand application deployment platform, now hosts hundreds of thousand of users and is the home for dozens of vertically oriented utilities solving real-world business problems.

AppExchange is a sandbox where application developers (and power users) can extend the functionality of the core features of Salesforce.com. AppExchange applications can be deployed to the enterprise and are made available to users via the sophisticated salesforce.com provisioning subsystem. AppExchange applications can be purchased in an on-demand fashion from their authors and can be rapidly integrated within a preexisting Salesforce.com instance.

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The Heart of Web 2.0
July 14, 2006   By: Chuck Russell

I’ve been browsing the CRM space lately and was surprised at the number of ‘software as service’ (SAS) startups.

The SAS-CRM vendors are beginning to move into the verticals. There is CiviCRM for non-profits and politicos. Sugar-CRM aims to lower the cost of CRM by delivering a widely deployed, open source solution for the mid-market. Microsoft has produced a viable solution with Microsoft Dynamics 3.0.  Of course there is the big gorilla, Salesforce.com, which has the most mature SAS CRM platform.

Vendors like LinkedIn, Ryze, Friendster and firms like Plaxo have functionality that rests on the periphery of CRM. These folks manage and mine the interconnected web of connections contained within the CRM adding value to data collected via sales and marketing activities. MovingOn is experimenting with CRM integration by providing Salesforce.com functionality within the blogging network.

All of the firms mentioned share one thing in common; each provides a web service framework so that it can be easily integrated with other services and functions. Web services are, of course, a trademark of Web 2.0. 

Web services may be the soul of Web 2.0. but CRM is the heart. Web 2 is about relationships and, after all, that is the CRM ‘suite spot’.

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Bad News for Siebel On Demand Customers
July 14, 2006   By: Chuck Russell

Yesterday, Oracle announced their intention to rip out the IBM back end powering Siebel on Demand (SOS).  Many analysts cautioned against customers choosing SOD for this reason.  This decision will impact customers because SOD relies on IBM technology to provide:

  1. Database: SOD has been designed and tuned to run on IBM DB2 for performance and scale
  2. WebSphere: migration will require porting to Fusion middleware
  3. Search: IBM was deeply involved with the development of this intellectual property, which Oracle will have to re-write
  4. Hosting: Siebel once claimed having “secure web hosting leader” IBM as their hosting partner was best for customers, now Oracle is a “cheaper” strategy per Phillips?

This migration will require significant time and resources.  It should alarm existing SOD customers, who ma now be treated as second class citizens running on a retired architecture.

“This only provides additional confusion within the Siebel installed base… The reality is, in the near term, nobody is going to sign a new deal with Siebel.” says Peter Coleman of ThinkEquity Partners.

It looks like an additional opportunity for Salesforce.com to increase on-demand CRM market share. Remember that the on-demand CRM space is the heart of Business Web 2.0.
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