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Article

Title: Salesforce.com Leads SaaS Stampede

Author: Handy, Alex Article Type: Product Analysis
Source: SD Times, n158 p1(2) Publication Date: Sep 15, 2006
  ISSN: 1528-1965
  Illustrations: Graphs
URL of Publication: http://www.sdtimes.com

Salesforce.com is leading the pack of providers of software-as-a-service (SaaS) in terms of revenues and subscribers. The service has nearly half a million subscribers and has reaped revenues amounting to a billion dollars. The success of the SaaS provider is a strong signal that customer fear of SaaS products is vanishing. There has been an increase in the number of government agencies and financial firms signing up for such a service. The growth in the industry has enticed the big technology companies like Microsoft, SAP and Oracle to also start bringing SaaS products to the market. Customers are satisfied with SaaS products since they do away with the need to hire IT consultants or the customers hosting all the data on their own. However, there are several downsides to adopting the service. The negative aspects include the occurrence downtimes. Salesforce also do not offer service-level agreements. The absence of service-level agreements, however, did not stop Salesforce to obtain the trust of its subscribers. Downtime is also not much of an issue to subscribers as it would have been if they were running their own CRM application. The small issues in Salesforces service did not negatively affect end results as shown in its revenues, profits and subscriber base, all of which have been growing since the service started.

Special Features: Graphs

Companies:
Salesforce.com Inc

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