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Salesforce.com sees growing adoption of Web-based software

By Lawrence Casiraya
INQUIRER.net
First Posted 19:40:00 06/07/2008

Filed Under: Economy, Business & Finance

Editor's Note: Corrects earlier version which erroneously stated that PLDT is already a client of IPC. We apologize for the error.

MANILA, Philippines -- Salesforce.com is counting on better awareness of Web-based software in growing its market in the country.

The company specializes in delivering customer relationship management or CRM software using the software-as-a-service (SaaS) model.

"Brand recall among local companies is a lot better than one-and-half years ago when we started the partnership," said Rene Huergas, president of IP-Converge Data Center (IPC), Salesforce.com's local consulting partner.

Huergas said IPC has signed up around 10 local end-users since the partnership was announced, both small companies to enterprise users.

"Larger users capitalize on Web-based software for competitive positioning," Huergas said in an interview with INQUIRER.net. "Smaller users use it primarily because they don't have the technical skills available or enough resources to spend on CRM."

Nonetheless, Huergas said overall perception about Web-based software is still at its infancy. IPC conducted an on-demand CRM conference in an effort to increase awareness among local businesses.

Steve Russell, Salesforce.com director for Asia Pacific and India, said adoption of on-demand CRM is still low in the Philippines.

Russell, though, believes there is more room for adoption because the market is largely comprised of small- to mid-sized companies that Salesforce.com is primarily targeting.

The company has nearly 30,000 customers worldwide. The number of Asia Pacific subscribers, Russell said, is growing twice that of the rest of Salesforce.com's market.

During a press briefing, he also pointed at increasing consolidation in the software industry, particularly the integration of CRM vendors Siebel and PeopleSoft into Oracle, as favorable to SaaS.

Citing analyst estimates, he said Web-based software will account for one-fourth of the estimated $200-billion market total market by 2010.

"In Asia Pacific, the appetite for SaaS is tremendous," said Russell. "Small companies that didn't have a competing product are now able to get access to it and be more competitive."



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