Sidebar: Measuring the ROI of CRM Services

Computerworld - The benefits of subscribing to online CRM applications from companies like Salesnet Inc. in Boston or Salesforce.com Inc. in San Francisco are often business-related and not technically driven.
Initial deployment costs for online CRM are virtually nil, always a plus to the CFO. And because the software has a broad scope of tools in standard configurations, it's quick to get up and running, a feature even the most ardent supporters of on-premise CRM seldom tout about their preferred software.
While advocates of the licensed, on-premise approach can't trump the quick deployment argument, they are taking shots at the low-cost one. David Leibowitz, managing director at Excelergy Corp. in Lexington, Mass., claims that his switch to a licensed version of Microsoft CRM from Salesforce.com's rented version will cost his company the same over time. And, he adds, because of the financing deal he made for the software, his start-up costs will be no higher.
Benjamin Holtz, CEO of CRM consultancy Green Beacon Solutions LLC in Watertown, Mass., argues that while it's true that over a three-year window a subscription approach will save money, users should be taking a longer, five- to seven-year analysis, which will put on-premise versions in a better light. Other consultants agree.
But Robert Blumstein, an analyst at IDC, says he thinks three years is the appropriate window to calculate your return on investment. "Beyond that," he says, "the speculation is more problematic."