The dominance that Salesforce.com has enjoyed in the overall marketplace has made it a prime target for those companies seeking to grab some of its hosted CRM market share. In the latest squabble between competitors, SAP has positioned itself against Salesforce. When it comes to the hosted CRM, which would you choose?
The Enterprise Draw in SAP for Hosted CRM
As SAP AG launches its own hosted CRM platform, the company is expected to compete intensely with incumbents, specifically Salesforce.com. While the latter is enjoying a strong hold on the market, the former believes it has the on-premise experience necessary to offer a hosted CRM that will deliver a seamless experience for all enterprise users, especially those moving from on-premise to hosted CRM.
Why Not Push All Hosted CRM?
While SAP is definitely making a smart entry into the hosted CRM space, it is treading lightly on how much it will push enterprise customers to this platform. Why? According to Forrester Research, 70 percent of all enterprise applications will remain on premise in the next five years. This research suggests that while a number of smaller companies are making the move to hosted CRM, larger enterprises are keeping much of their focus in-house. SAP’s ability to cater to both could help project the company to a leading position in this space. The company has been a strong leader for years with enterprise applications and a mixture of on-premise and hosted CRM support may be something Salesforce.com has to re-evaluate to support.
Why Salesforce.com May Still Reign with Hosted CRM
Despite the virtues that SAP can offer in its Sales OnDemand platform, as well as the company’s strength in the on-premise applications market, Salesforce.com may still be able to reign in this space simply because the company can offer solid support for those companies seeking to move all efforts to a hosted CRM platform. SAP is not yet there, although it still provides a solid fit for those companies seeking to move certain applications to the cloud. Companies who want to leverage complete hosted CRM throughout the organization may be able to realize more immediate benefits in working with Salesforce.com from launch.