CRM Buyer Talkback
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Salesforce.com was created during cloudy economic times, and its business model -- per-user, per-seat pricing when the market offered nothing but million-dollar enterprise-based pricing -- took off precisely for that reason. Now the company, which has since remade itself into an enterprise class vendor that is still available at moderate enough pricing, is reaping the benefits of its original case to business as the economy worsens. For the fiscal first quarter, Salesforce.com reported net income of $9.6 million, or 8 cents a share.
Salesforce.com and other per-user-priced CRM models may be faring well at the moment but are facing serious competition for the increasingly sophisticated free CRM and contact management services avilable on the web. Sites like www.octopuscity.com are offering quality free CRM tied in with Web 2.0 features such as business networks and free teleconferencing, and in my opinion they are about to give on-demand dinosaurs like Salesforce a run for their money.