Comments on: Software as a Service: Price Wars Coming? http://www.mspmentor.net/2008/03/11/software-as-a-service-price-wars-coming/ Managed Services & Cloud Services Blog for VARs & MSPs Tue, 14 Feb 2012 18:25:29 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RRaj http://www.mspmentor.net/2008/03/11/software-as-a-service-price-wars-coming/comment-page-1/#comment-3236 RRaj Thu, 13 Mar 2008 04:57:13 +0000 http://www.mspmentor.net/2008/03/11/software-as-a-service-price-wars-coming/#comment-3236 Yes, you are right about the price wars. $10/user seems to be the sweet-spot among Salesforce's competitors (Disclosure: I work for one, though not in CRM). And Salesforce is indeed aware of the threat and its implications... Quote from a recent Forbes article. http://www.forbes.com/2008/02/22/mitra-zoho-india-tech-inter-cx_sm_0222mitra.html [quote]Well, Zoho does everything that you would do with Microsoft Office. It also has a hosted customer relationship management service that is free for very small companies and only costs $10 per user per month for larger ones. It competes with Salesforce.com (nyse: CRM - news - people ), which charges $65 per user per month. Marc Benioff, chief executive of Salesforce.com, has made an offer to buy Zoho for an undisclosed amount. Benioff seems appropriately nervous, since Salesforce.com's sales and administration costs are high, eating up most of his earnings. Can he afford to compete if Zoho undercuts him at such a dramatic scale? Vembu has turned Benioff down.[/quote] Yes, you are right about the price wars. $10/user seems to be the sweet-spot among Salesforce’s competitors (Disclosure: I work for one, though not in CRM). And Salesforce is indeed aware of the threat and its implications…

Quote from a recent Forbes article.
http://www.forbes.com/2008/02/22/mitra-zoho-india-tech-inter-cx_sm_0222mitra.html

[quote]Well, Zoho does everything that you would do with Microsoft Office. It also has a hosted customer relationship management service that is free for very small companies and only costs $10 per user per month for larger ones. It competes with Salesforce.com (nyse: CRM – news – people ), which charges $65 per user per month.

Marc Benioff, chief executive of Salesforce.com, has made an offer to buy Zoho for an undisclosed amount. Benioff seems appropriately nervous, since Salesforce.com’s sales and administration costs are high, eating up most of his earnings. Can he afford to compete if Zoho undercuts him at such a dramatic scale?

Vembu has turned Benioff down.[/quote]

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