The Blog

  • May 26, 2010
  • Last week and the triumph of CRM

    Last week was busy in a good way and also in ways that we have not seen in a while and at least some if that busy-ness showed promise for the economy and our industry.  In no particular order, Cloud9 Analytics announced it closed its C round financing, SAP held its user meeting in Orlando, Sage held its partner meeting in Denver, and Microsoft sued Salesforce.

    You might think that last bit didn’t fit with the rest of the list and aside, from the fact it happened last week, it doesn’t.  But it struck me that the two companies are getting into each other’s faces over a market that has significant upside.  Regardless of its merits, this suit suggests to me that Microsoft, at least, thinks important issues need to be decided before the market really heats up.  The way suits move through courts it’s unlikely we’ll see a result soon but to be fought over like this it makes you feel like the prettiest girl at the ball doesn’t it?

    Perhaps the most interesting item in CRM, for me at least, is that Cloud9 raised eight million dollars.  Cloud9 is certainly worthy of investment but the announcement says more about the state of the venture community that had been almost sleeping in the last year.  According to the National Venture Capital Association (NVCA), 2009 was the worst year for venture funding since 1997, with less than $18 billion invested and just over $15 billion raised.

    Last quarter biotech led software in investment dollars, a trend that has been developing for some time.  That high tech is not leading the venture parade should be a concern and the trend bears watching.

    I know what you are thinking, you can still do a lot with eighteen billion but it pales in comparison with the hundred billion invested in 2000 or the twenty to thirty billion more typically invested each year in the last decade.

    The Cloud9 investment is a silver lining for the industry but the rainbow is still not shining.  Keep in mind that this represents a C round which means the investors are looking to a liquidity event in the relatively near term.  That’s completely different from the longer-range expectations held in a typical A round.  Nonetheless, it’s good to see money being put to work and the optimism that it implies.

    Also on the optimism scale Sage and SAP convened meetings with their users.  Sage is continuing to evolve itself and as Doug Meyer, Chief Customer Officer told me and CEO Sue Swenson said in her keynote, the company is going all out to make itself easy and fun to work with.  Customer experience is a top priority as is product evolution and Sage showed it is serious about the on-demand market by launching a version of SalesLogix that will be delivered from the cloud.  All indications are that the partner community is receiving the offering well and general availability is scheduled for later this year.

    Although I didn’t go to Orlando (because I was in Denver) from the emissions at Sapphire it seems like the ERP world has discovered the importance of crowdsourcing and the wisdom of crowds and their eponymous books.  The tweet-storm coming from Orlando can be summarized in Co-CEO Bill McDermott’s keynote sound bite: “SAP embraces People, By Design.”  Promising greater collaboration with its customers as well as the tools to enable SAP customers to more effectively engage in collaborative business processes with end customers, SAP unveiled new products and new attitudes.  Since I was not there it’s best to get the skinny from those who were, including Sameer Patel, Vinnie Mirchandini and Dennis Howlett to name a few.

    The collaboration thing has me more than intrigued.  I can’t find a soul who cares to object to the idea and that tells me that CRM and our focus on all things social over the last few years is having an impact that goes well beyond front office borders.  You might call it the triumph of CRM.  It became readily apparent last week and, the economy not withstanding, that may be the biggest news coming out of one of the best weeks in CRM we have had in a while.

    Published: 14 years ago


    • May 28th, 2010 at 8:44 am    

      Thany you for this insightful post. I googled Cloud9 (yes, I am one of the few who haven’t heard of this company) and surprisingly, I can’t seem to find the “about” section on their site. All I know is that they’re based in Ireland. Where can I find more info, ie year of creation, partnerships, mother-company, etc?

    Speak Up

    You must be logged in to post a comment.