I reported a couple of weeks ago about the aggressive stance salesboom is taking in order to acquire Salesforce.com customers.
Hot on the heels of that comes Netsuite's Renewforce program. Renewforce seeks to migrate SFA customers to Netsuite's own product line and is guaranteeing;
More and more we're seeing downward pressure on SaaS vendors - there is a cyclical effect going on here. When Salesforce first bought SaaS to mainstream business users, the major play was that their product would disrupt the incumbent offerings. Much of this disruption was going to come about as a result of the move from CAPEX to OPEX and the lower TCO of the product.
We're now seeing the initial SaaS vendors begin to feel the pressure from a new generation of vendors - all believing they can do it cheaper than SFDC.
It's a little comical that, simultaneously with consumer applications scrambling to find ways to gain a monetization path, business applications are being pressured on all sides by downward pricing pressure.
I wonder how far this pressure will cause prices to drop and who is best placed to trim the fat sufficiently to come out on top?
This is stupid in reality. The major competitors is the on prem crowd. By price discounting in the much smaller SaaS space they're effectively defiling their own drinking water. Silly silly strategy... SFDC is a lot more than a CRM company now, they are playing it much smarter
Well, if companies are going for a cheaper price in the business SaaS industry and can still make it, why not? However, I still strongly believe that a customer will pay a price that is equal to what he will receive at the end (looking at it on a macro level). Let's remember that in SaaS, the important word is Service. You can give away your software for cheap, even for free (http://blogs.zdnet.com/SAAS/?p=604), but to have a good service around your software, the cheapest is usually the enemy of the best. So at the end, is it the price that is going lower? Or just the quality of service?
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And Next to Attack Salesforce is....
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