Sidebar: Measuring the ROI of CRM Services

By Mark Hall

December 15, 2003 12:00 PM ET

Recommended

(5)

Digg

Twitter

Share/Email

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."

Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Jump to comments

CRM

Additional Resources

Xerox

Win a color printer!

By using solid ink technology only from Xerox, you could save up to 65% by printing color for the cost of black and white. Enter for a chance to WIN a PhaserTM 8860 network color printer!

Microsoft

Upgrade to Internet Explorer 8 today.

Save time and mitigate security risk. Deploy it now.

Sybase

NEXT-GENERATION MOBILITY PLATFORMS

In this white paper, IDC analyzes the role of next-generation mobile enterprise platforms as organizations seek a more strategic deployment of mobile solutions.

Learn the important issues you must consider before starting your next mobility initiative. Get your mobility white paper from IDC now, compliments of Sybase.

White Papers & Webcasts

Informatica 9 Launch: Transform your Business. Transform your world.

LIVE Nov 10, 2009 12:00 PM ET

Architecting Business Intelligence Applications for Change: The Open Solution

LIVE Nov 12, 2009 02:00 PM ET

Forrester Consulting - Optimizing Users and Applications in a Mobile World
Learn how to successfully deploy a WAN optimization solution that is specifically tuned for a mobile environment!

Top to Bottom Performance Management Excellence at the City of Chicago
View now.

Faster, Cheaper and Easier to Maintain
Can you afford not to upgrade your servers to today's advanced, energy-efficient technologies?

Effectively Implementing Datacenter Automation
Effectively select and deploy the best datacenter automation solution today!

The State of PCI DSS Compliance at Organizations Today
Download this resource today!

Aligning IT to Business: The Rising Importance of Application Delivery Networks
Application Delivery Networking (ADN) will play a vital role in helping enterprises incorporate strategic technologies to achieve business initiatives.

IDC Research Report: The Business Value of Consolidating on Energy-Efficient Servers
Download this Resource Now!

Strategies for Driving Down IT Support Costs with Lite ITIL Practices
View this now!

HP Technology Guide for Scalable Business Solutions
Download This Resource Now!

Mitigate Risk, Lower Costs and Improve Network Efficiency
Create a stable IP network that not only meets today's challenges, but is flexible enough to also meet future demands.

All White Papers | All Webcasts