Tuesday, February 07, 2006

 

Words of welcome from SAP's hosted competition

Words of welcome from SAP's hosted competition: "'Is SAP on the defensive? Are they worried that with few customers actually using their CRM software, and salesforce.com making significant inroads in their customer base, their entire business model may be at risk? People who haven't followed our company closely often ask, 'Aren't you worried? A company with the resources of SAP can bring so much to this battle.' But that's exactly the problem. Observers tend to overestimate the creativity and innovation that entrenched technology companies can bring to a particular problem and underestimate the effect of business model conflicts that lurk behind the scenes. Siebel tried to sell an admittedly inferior on-demand product as an on-ramp to its on-premise system. It appears that on-ramps make road pizza out of your business model.
--Marc Benioff, CEO of Salesforce.com "

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