Microsoft, SugarCRM Pursue Salesforce.com Customers
At this week’s massive DreamForce cloud computing conference in San Francisco, Salesforce.com is clearly seated at the center of the SaaS universe. But Microsoft and SugarCRM, respectively, are both taking aim at Salesforce.com’s CRM business with special financial and pricing offers. The big question: Is price really, truly the best way to compete in the SaaS market?
First let’s set the scene: DreamForce, hosted by Salesforce.com, essentially is the largest cloud computing conference of the year. Roughly 30,000 people are attending the conference, including thousands of channel partners — and plenty of rivals.
Enter Microsoft Dynamics CRM and SugarCRM. Microsoft, for instance, has launched a “Cloud CRM for Less” promotion to Salesforce.com and Oracle customers. Through this offer, Microsoft says:
“Microsoft will rebate eligible customers up to $200 for each user that makes the switch to Microsoft Dynamics CRM Online between now and June 30, 2011. The offer can be applied for services such as migrating data or customizing the solution to meet unique business needs. More details on the offer can be found at http://www.cloudcrmforless.com.”
Meanwhile, SugarCRM — the open source CRM software developer — also is leaping into the conversation. Sometime on December 7, SugarCRM is expected to announce a special deal for Salesforce.com customers. According to a SugarCRM spokesperson, “Any company looking to switch is guaranteed 50% savings over what they pay to Salesforce.com, additionally they’ll receive free migration to SugarCRM. Depending on the number of users and amount of data, the savings can be several thousands of dollars.”
Is Price the Best Way to Compete?
In recent months, Microsoft has repeatedly used pricing moves to compete in the SaaS and cloud markets. A prime example: Microsoft is preparing Office 365 — starting at $6 per user per month — to compete with Google Apps. Now, along comes Microsoft’s special pricing promotion vs. Salesforce.com.
The challenge for channel partners: Continuing to communicate the value of SaaS applications and related integration services — rather than chasing special promotions that are based purely on dollars and cents.
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