1. CRM SOFTWARE What is CRM, Evolution of CRM software and SaaS, SugarCRM in depth, CRM SW Market

2. What is CRM? “customer relationship management” CRM is an information system for identifying, acquiring, and retaining customers. It helps companies to: Target right customers Build profitable relationships with new ones Increase profitability of existing ones

3. Why do companies need CRM? Historical trends 1950s: “I buy what I find” 1970s: “I buy what I can afford” 1990s - present: “I buy what I want” Customer got the power Companies need to differentiate themselves by focusing on how they sell, not what they sell. CRM can play a pivotal role in achieving that differentiation. Moreover, retaining customers is cheaper than acquiring them.

4. Evolution of CRM Software Early 1980s: CRM appeared on business scene, not widely used and had high failure rates 1994: client-server based Late 1990s: CRM became viable for SMB => treated software as a service (SaaS) 2000s: two types of CRM SW: On-Premise On-Demand: SaaS (became popular beginning 2004-2005)

5. Popular Trends in CRM Software ON-PREMISE ON-DEMAND SaaS OPEN SOURCE 20001990sToday Cost and Deployment Complexity

6. On-Premise and On-Demand On-Premise: implementation, administration and maintenance of CRM systems in-house, needs HW Siebel Oracle SAP PeopleSoft Microsoft On-Demand (SaaS): subscription-based (pay as much as you use) with low cost and no HW requirements Sales force Siebel OD NetSuite SugarCRM

7. On-Demand CRM SW Advantages Low cost due to elimination of capital expenditures (HW) Shorter implementation time because no installation needed More powerful and secure IT infrastructure Much lower risk due to outsourced expertise Modification without IT bottleneck Automatic and frequent upgrades Vested vendor interest: vendor has to take care about IT infrastructure Disadvantages Third party involvement: vendor controls your software, security and data User’s control over the application is restricted Might be costly in the long run

8. On-Demand vs. On-Premise On-Demand is better than On-Premise in: –Higher “significant performance” improvement –Shorter system implementation times –Fewer project budget overruns –Higher customer satisfaction

9. Evolution of SaaS 1st Wave ASP The birth of SaaS concept, offers subscription based packages Expensive in the long run Monolithic Inefficient Costly Intergration 2nd Wave multitenant SaaS Offers a superset application Easy administration Low subscription costs Very limited customization Not secure No complex deployments 3rd Wave Multi-instance SaaS Rise of open source, commoditization of HW components Fast deployments Lower risk High levels of customization Easier access Complex/simple deployments

10. An Attractive Alternative: Open Source It is emerged as an alternative for proprietary CRM SWs that are very expensive and difficult to use. Open source SaaS promises: Faster payback Higher quality and innovation More control over the application No vendor lock-in Premier open source products like SugarCRM and CentricCRM cannot compete head to head with the enterprise CRM products like Siebel but they provide many advantages and cost saving offers that are compelling and increasingly competitive for the SME and business unit implementations as well as big enterprises

11. Comparing CRM SaaS Alternatives: Open Source SaaS’ advantages: Free from license cost High flexibility Customization Modular No vendor lock-in User adoption Suitable for SMB and big enterprises Commercial SaaS’ advantages: Brand name Faster customer service & support Industry/Domain specific functional features

12. SugarCRM SugarCRM was founded in 2004 by John Roberts, Clint Oram and Jacob Taylor. The company began as an open source project on Sourceforge in April 2004. It became the world's leading provider of commercial open source CRM software for companies of all sizes. “There are a lot of smart people outside of Silicon Valley.” SugarCRM currently employs over 150 people. In just two years, Sugar Open Source has been downloaded over 1,000,000 times and translated into over 50 languages. Oram says: “SugarForge is where it's built and SugarExchange is where it's sold.”

13. SugarCRM: Commercial Open Source SugarCRM develops CRM software in three versions: Sugar Enterprise Sugar Professional Sugar Community (Gratis) Users have complete access to the source code which enables them to customize the SW efficiently and inexpensively. Hence, user does not adopt himself to product instead he adopts the product to himself. Moreover, it can be used modular and is operating system-neutral. End User Demo: http://www.sugarcrm.com/crm/community/sugarcrm- community.html

14. SaaS CRM SW Market: per user, per month prices SugarCRM Sugar Community: Free Sugar Professional: $40 Sugar Enterprise: $75 Salesforce –Professional: $65 –Enterprise: $125 Oracle: $70 SAP: $75 Siebel: $70 +$125 for additional modules + fees for additonal support, external data, storage space

15. On-Premise CRM SW Market: per user, per year prices PeopleSoft: $13,500 Siebel: $11,513 + $25,939 for initial deployment