Tag Archives: ERP

Hype and Software as a Service

Vinnie Mirchandani, Joshua Greenbaum, Bob Warfield respond.

I certainly agree with Mr. Debes that we have been here before. Technology analysts grab hold of the next great thing and see how far it will bend before it breaks. SaaS is a collection of ideas exemplified by Salesforce. Each idea could be implemented by traditional software vendors. We want to understand what makes Salesforce successful, but we must recognize the difference between Salesforce and an ERP system. Sales pipelines can be abstracted from the daily operations of a business. Salesforce does not need to understand backflushing with 3-level bills of material with multiple currencies and the impact on materials planning in a cellular manufactring environment. Thankfully.

Mr. Mirchandani says the problem is that enterprise software vendors are not listening to their customers who are asking for Salesforce features and a Salesforce pricing model. Perhaps for some that makes sense, but what makes Salesforce and other SaaS companies successful is the tight scope of their product. Enterprise software has a huge scope and it must be completely customized in certain areas. Areas that are different for every type of business.

Salesforce.com’s Force and SAP’s A1S

Two announcements this week, all centered around small and mid-market applications built on flexible platforms. Force.com from Salesforce.com is a rebranding of their technology with a focus beyond CRM applications. This article mentions some promising case studies including 45,000 users running on the Salesforce.com platform already. That’s the Japanese post office, so obviously internationalization isn’t an issue. Not everyone is convinced of Salesforce.com’s potential. Joshua Greenbaum thinks that SAP’s A1S, to be announced on Sept 19th, will be the one to beat.

Either way, I’m pretty excited. On-demand, software-as-a-service business software platforms with straightforward development tools have incredible potential. Highly-tailored applications are the way to go, but you don’t want to be caught in the low-level details of databases and web service implementation.