CRM Trends

You can observe a lot just by watching.

- Yogi Berra

Some significant trends in the small- and medium-sized business CRM market include on-demand CRM, browser-based on-premise CRM, CRM as a portal to other applications, mobility applications, and big players moving into the SMB space. This week, I will provide a brief description. In the coming weeks, we will explore them in more detail.
On-Demand
While on-demand (or hosted) CRM is not new, it continues to gain momentum. And, unless you have lived under a rock, you or someone you know, is using Salesforce.com. It has become the “safe” choice for companies because it is so widely used and accepted. Other hosted solutions include SageCRM.com, Entellium, Netsuite, and RightNow Technologies. As we speak, Microsoft is preparing to deliver an on-demand solution – code named “Titan”, in the Fall of 2007. The point is that hosted solutions are here to stay after a shaky start a few years ago. The market seems to have weeded out the pretenders leaving well-designed and stable applications.
One of the most attractive benefits of the hosted solution is the lack of installed software. Users have real-time access to their data from any machine anywhere they are able to access the Internet. I am fond of hosted applications because it allows me to build customizations and access customer systems very easily. I don’t have to use Terminal Services or use Webex. In addition, I don’t have to plan rollouts with complicated software installations.
On-Premise On-Demand CRM
On-premise on-demand CRM differs from on-demand hosted CRM because the application is installed, and hosted, by the customer on a web-accessible server. Many companies prefer this arrangement because it does not require a never-ending payout, is more amenable to back-office integration, provides more control over their data, and does not require installation on users’ machines. Increasingly, on-demand SaaS companies are offering this option. Oracle, and Sage to name two.
CRM as a Portal to Other Databases
Because CRM can have a flexible architecture and is the most logical choice for customer-facing employees, many companies are pushing data from back-end and web solutions to the CRM solution. The ideal is to provide each user with one primary application to perform their duties. Providing them accounting information about a customer, or giving them real-time sales results in graphical format – all in their CRM application without requiring them to open up an accounting application – is a tremendous benefit. IT also likes to idea of locking down unnecessary user access to the accounting application.
Mobility
One exciting development is the improvement of CRM available on Windows Mobile, and Blackberry phones. SageCRM.com and SageCRM ships ready to access on web-accessible PDA’s using views adapted to the smaller screen size. SalesLogix has a mobile client that exploits Blackberry “push” technology to facilitate the dialing of phone calls and documenting the results. New solutions have replaced the out-dated, clugey solutions of even a few months ago.
New Players
SAP, Siebel (Oracle), and Microsoft seem to be gaining momentum in the SMB market. Salesforce.com, the 500-pound gorilla in the SMB market, was recently down-graded on Wall Street, which expects fierce competition from new on-demand offerings by SAP and Oracle. What’s more is that Salesforce.com lacks the diversity of offerings that SAP and Oracle possess.
Future
We are sure to see significant changes in the near future. In the coming weeks, we will focus on these trends and speculate where the market is headed.