Case Study 2

1. What are the advantages and disadvantages of the softwareas-a-service model?

CRM SaaS Advantages

SaaS CRM solutions are a catalyst for how organizastions change their use of front office software systems and put users in control of customer facing business systems for the first time. SaaS enablement of software utilization without extended implementation time frames, software modification without IT bottleneck, world class infrastructure without capital expenditures and 24 by 7 uptime without around the clock staffing are a few of the compelling advantages of SaaS. Other key benefits include the following:

* Low cost of entry and lower total cost of ownership (TCO) - elimination of capital expenditures and dramatic reduction in IT salaries

* Vested vendor interests - if the application utilization is not successful, the vendor loses the customer revenue opportunity

* Much lower risk - faster implementations and outsourced expertise dramatically lower risk

* A more powerful and secure IT infrastructure - few organizations can match the infrastrucure and security investments made by SaaS vendors

CRM SaaS Disadvantages

SaaS isn't a silver bullet or magic - and will not provide the same benfits to all usuers.

* Some organizations find it very difficult to relinquish control or trust third parties to manage their applications and data

* Some vertical markets require industry specific business applications for which SaaS solutions are not available

* Organizations without clear objectives and defined business processes will be no better off with a SaaS solution than with an on-premise solution.

2. What are some of the challenges facing Sales force as it continues its growth? How well will it be able to meet those challenges?

Challenges:

Competition from other big players like Microsoft, IBM etc.

Expansion from CRM to other application services like SCM, ERM etc.

Reduction of downtime.

How to Overcome?

Saleforce.com was...