Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For...

16
Salesforce.com Hidden Costs Page 1 Counting the Hidden Costs of Salesforce.com EXECUTIVE SUMMARY Organizations evaluating CRM solutions should be aware of the hidden costs of Salesforce.com’s licensing structure. This document was created to 1) help organizations to understand the areas where hidden costs exist, 2) ask the right questions of the CRM vendors they have chosen to investigate, and 3) make informed CRM investment decisions. For organizations considering Salesforce.com, common misconceptions or surprises include the following: HYPER-PREMIUM PRICING. Salesforce.com Professional Edition (list price USD $65/user/month) has a very limited set of functionality that meets few businesses’ needs. As a result, Salesforce.com upsells companies to its Enterprise Edition, which they state is their most popular edition at a list price USD $125/user/month. Surprisingly, even this version is incomplete. In contrast, Microsoft Dynamics CRM Online is a complete CRM solution and available for USD $44/user/month. ADD-ON CHARGES. Salesforce.com sells add-on functionality at an additional cost. Additional costs include items like mobile (USD $50/user/month), knowledge base (USD $50/user/month), offline access (USD $25/user/month), visual workflow, partner and community portals, and more. In contrast, many of these capabilities are included with Microsoft Dynamics CRM, or available at a lower additional cost. EXORBITANT STORAGE COSTS. Organizations that need more storage capacity are subject to Salesforce.com’s additional storage costs which can be as much as USD $250/gigabyte/month. In contrast, additional storage in Microsoft Dynamics CRM Online is $9.99/gigabyte/month. MISSING FUNCTIONALITY. While Salesforce.com has invested in numerous acquisitions to build its collaboration and Platform-as-a-Service products, relatively less investment has gone into its CRM product line. In contrast, Microsoft Dynamics CRM is recognized as a leader by leading analyst firms, and is committed to innovating its CRM products. FRAGMENTED MOBILE SUPPORT. While Salesforce.com claims to differentiate on its mobile capabilities, it has gaps in device support (e.g., Android, Windows Phone). Additionally, there is no continuity between the Sales Cloud, Service Cloud, and Chatter. In contrast, Microsoft Dynamics CRM provides options for organizations to obtain a consistent experience across devices for a reasonable cost. The remainder of this whitepaper provides a cost comparison to Microsoft technologies, while providing detailed insight into Salesforce.com’s hidden costs. Additionally, it provides specific guidance on what topics to discuss with Salesforce.com prior to signing a contract. If you would like additional information, please visit our website at http://crm.dynamics.com.

Transcript of Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For...

Page 1: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 1

Counting the Hidden Costs of Salesforce.com

EXECUTIVE SUMMARY

Organizations evaluating CRM solutions should be aware of the hidden costs of Salesforce.com’s licensing structure. This

document was created to 1) help organizations to understand the areas where hidden costs exist, 2) ask the right

questions of the CRM vendors they have chosen to investigate, and 3) make informed CRM investment decisions.

For organizations considering Salesforce.com, common misconceptions or surprises include the following:

HYPER-PREMIUM PRICING. Salesforce.com Professional Edition (list price USD $65/user/month) has a very

limited set of functionality that meets few businesses’ needs. As a result, Salesforce.com upsells companies to its

Enterprise Edition, which they state is their most popular edition at a list price USD $125/user/month. Surprisingly,

even this version is incomplete. In contrast, Microsoft Dynamics CRM Online is a complete CRM solution and

available for USD $44/user/month.

ADD-ON CHARGES. Salesforce.com sells add-on functionality at an additional cost. Additional costs include

items like mobile (USD $50/user/month), knowledge base (USD $50/user/month), offline access (USD

$25/user/month), visual workflow, partner and community portals, and more. In contrast, many of these

capabilities are included with Microsoft Dynamics CRM, or available at a lower additional cost.

EXORBITANT STORAGE COSTS. Organizations that need more storage capacity are subject to Salesforce.com’s

additional storage costs which can be as much as USD $250/gigabyte/month. In contrast, additional storage in

Microsoft Dynamics CRM Online is $9.99/gigabyte/month.

MISSING FUNCTIONALITY. While Salesforce.com has invested in numerous acquisitions to build its

collaboration and Platform-as-a-Service products, relatively less investment has gone into its CRM product line.

In contrast, Microsoft Dynamics CRM is recognized as a leader by leading analyst firms, and is committed

to innovating its CRM products.

FRAGMENTED MOBILE SUPPORT. While Salesforce.com claims to differentiate on its mobile capabilities, it has

gaps in device support (e.g., Android, Windows Phone). Additionally, there is no continuity between the Sales

Cloud, Service Cloud, and Chatter. In contrast, Microsoft Dynamics CRM provides options for organizations

to obtain a consistent experience across devices for a reasonable cost.

The remainder of this whitepaper provides a cost comparison to Microsoft technologies, while providing detailed insight

into Salesforce.com’s hidden costs. Additionally, it provides specific guidance on what topics to discuss with

Salesforce.com prior to signing a contract.

If you would like additional information, please visit our website at http://crm.dynamics.com.

Page 2: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 2

Counting the Hidden Costs of Salesforce.com

Contents Pay More and Get Less with Salesforce.com .......................................................................................................................... 3

User Productivity Costs ........................................................................................................................................................... 6

Deployment Costs ................................................................................................................................................................. 11

Application Support Costs ..................................................................................................................................................... 13

How to Avoid Salesforce.com’s Hidden Costs ...................................................................................................................... 15

Select Microsoft Dynamics CRM Customers ......................................................................................................................... 16

Page 3: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 3

Pay More and Get Less with Salesforce.com

Cloud-based customer relationship management (CRM) vendors such as Salesforce.com have made it relatively easy to

evaluate, compare, try, and subscribe to its CRM solutions. However, some customers have found that the projected versus

actual costs of using Salesforce.com increases their total cost of ownership far more than their published subscription

fees.1

Salesforce.com is missing critical functionality that you get with Microsoft products. Organizations that need to add

additional features or third party products can find themselves paying unexpected, and significant, extra charges in terms

of deployment, application support, and user productivity.

This paper illustrates that Salesforce.com offers a ―pay more, get less‖ value proposition, and also provides insight into

areas where functionality gaps may result in additional costs.

PAY MORE

a

Estimates are based on a common arrangement for a 50-user deployment. Costs are in U.S. dollars. b

Microsoft subscription costs include Microsoft Dynamics CRM Online, Microsoft Office 365, CWR Mobility, and 2 GB of additional storage. c

Deployment costs in this chart exclude implementation and resource costs associated with configuration, customization, integration, development, and data migration.

As the preceding chart depicts, organizations should be aware of additional costs that might be required to deliver

needed functionality and support through Salesforce.com.

Many Salesforce.com customers find out when it is too late—after a two or three year contract has already been signed—

that additional costs apply. For example, Salesforce.com customers face a hidden cost to user productivity and

subscription costs if important functionality such as workflow, beyond a simplistic version of it, is required.

Despite its premium priced offerings2, Salesforce.com often charges a premium for application support, application

administration, and data archiving and restoration. Additional costs can also apply for things like CRM data migration,

data de-duplication, Microsoft Outlook interoperability, mobile access, and offline usage.

1 See appendix, ―Customer Switchers: Salesforce.com to Microsoft Dynamics CRM‖

2 See Salesforce.com’s pricing information

List priceb:

$113/user/month

List price:

$659/user/month

!

List price:

$699/user/month

!

c

a

Page 4: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 4

For these reasons, organizations evaluating Salesforce.com should understand the cost implications, and also understand

alternatives like Microsoft Dynamics CRM business software—one of the leading CRM solutions in the industry.

GET LESS

To help illustrate where Salesforce.com functionality limitations exist, consider the following comparisons of Microsoft and

Salesforce.com.

It is readily apparent that Salesforce.com provides a subset of the functionality that Microsoft provides—but at a premium

price. Each of the Salesforce.com limitations represents a subset of the hidden costs that can creep up with

Salesforce.com.

For organizations looking to leverage their existing Microsoft investments, Microsoft offers a more complete feature set.

Additionally, many Microsoft Dynamics CRM capabilities are included and interoperable with Microsoft Office 365,

Microsoft SharePoint Server, Windows Azure technology platform, Microsoft SQL Server database software, Microsoft

Exchange Server, or other Microsoft technologies – right out of the box. Organizations that select Microsoft Dynamics

CRM can derive even more value from investments that it has already made in Microsoft products.

A BETTER OPTION AND VALUE

Contrary to the Salesforce.com ―pay more, get less‖ approach is a better value proposition from Microsoft. For example,

Microsoft Dynamics CRM Online provides predictable pay-as-you-go pricing and a financially backed service level

agreement (SLA).

Flexibility, reliability, security, and simplicity

are often considered important characteristics

by organizations who evaluate CRM

solutions. Microsoft delivers tremendous

value when assessing these characteristics

along with delivering lower user productivity, deployment, and application support costs. This is one reason that

Microsoft Dynamics CRM is regarded as a leader in the CRM industry3 by top technology analysts.

Success. Microsoft Dynamics CRM has delivered successful sales, service, and marketing solutions to more than 30,000

customers and 2 million users worldwide, from the largest organizations in the world to the smallest. For more

information on some organizations that switched from Salesforce.com and realized success on Microsoft Dynamics CRM,

see the appendix section entitled, ―Customer Switchers: Salesforce.com to Microsoft Dynamics CRM.‖

3 http://crm.dynamics.com/en-us/analyst-coverage

Page 5: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 5

Flexibility. With the power of choice in deployment, you

can implement in the cloud, on-premises, or have your

solution privately hosted by one of our partners.

Additionally, Microsoft Dynamics CRM is built on the xRM

Application Framework, a declarative modeling

application that lets power users modify and even create

new applications in a point-and-click manner. And

because Microsoft Dynamics CRM is built on .NET, it is

easy and cost-effective for organizations to leverage their

existing Microsoft investments to adapt Microsoft

Dynamics to specific needs and processes, as needed.

Reliability. In addition to a financially-backed 99.9

percent uptime SLA, Microsoft offers several global data

centers that are managed and operated directly by

Microsoft. Also, each Microsoft data center offers best-in-

class security and in-region disaster recovery.

Security. Unlike Salesforce.com, there is no co-mingling

of customer data in Microsoft Dynamics CRM Online.

Customers are provisioned with their own customer

database to maximize the security and integrity of their

data.

Simplicity. The Microsoft Outlook experience and ease-

of-use is only one reason that sets Microsoft apart from Salesforce.com. Additionally, with Microsoft Dynamics CRM

Online, you are able to scale the number of users up or down, based on your business requirements.

The remainder of this document explores a range of hidden costs associated with Salesforce.com across a variety of

dimensions including deployment costs, application support costs, and user productivity costs.

Interested in comparing costs?

Check out the cost comparison calculator at

http://crm.dynamics.com/compare.

Page 6: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 6

User Productivity Costs

Social and Collaboration: Salesforce.com provides Chatter to all CRM subscribers for no additional charge. However,

there are several collaborative features absent, and Salesforce.com customers have expressed mixed feeback on Chatter.

Activity feed relevance

Chatter is not as productive without the context of CRM records. Chatter Plus doesn’t

permit access to CRM objects such as opportunities, cases, or contracts. Chatter Free

doesn’t permit access to any Salesforce.com objects.

Workflow triggers Users can’t flag or create Outlook or CRM tasks from important Chatter posts, only follow

or unfollow.

Search

Salesforce.com search capabilities are disconnected, incomplete, and can cause user

productivity losses. For example: there is a separate search bar for content library and

Chatter Groups; the search options don’t have the ability to search through all custom

objects; the search function doesn’t search through attachments to CRM records. The

only files it searches through are content library and Chatter files. Additionally, global

search is only available if Chatter is enabled.

Reduce activity feed

clutter

New Chatter users automatically follow the objects and fields for feed tracking that their

Salesforce.com administrator has setup. It is incumbent upon them to ―unfollow‖

irrelevant groups, people, and objects—a time-consuming ―tear down‖ approach that

drains user productivity.

Document management

Salesforce.com has multiple document and file storage features including Chatter Files,

Content Library, attachments on CRM records, and a Documents tab. Which feature

should a customer use and when?

Document check-in /

check-out Content Library doesn’t provide an option to check in or check out a document.

Privacy Chatter doesn’t allow hidden groups. They are either public or private. Administrators

have visibility to private Chatter posts.

Enterprise-wide

deployment

Chatter can't always be used cross-company. It limits its customers to one instance of

Chatter per Salesforce.com organization with a maximum of five domains.

Twitter and Facebook

setup

Salesforce.com offers Twitter and Facebook monitoring through an AppExchange add-on

that does not include support. Customers have expended time and effort to install

without success or Salesforce.com assistance.

Twitter monitoring Salesforce.com Twitter requires the user to manually refresh to get new tweets. The

tweets come through a fire hose with no logical grouping or organization.

Hidden Costs

Salesforce.com for Twitter and Facebook Free/unsupported

Chatter Plus U.S. $15 per user per month (excludes existing

CRM susbscribers)

Workflow and Business Process Automation: Salesforce.com workflow is designed to handle simple business

processes, such as notifying a manager that a new opportunity has been created above a specific dollar amount. There

are significant limitations related to objects, conditions, criteria, actions, and timing.

Page 7: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 7

Multi-entity business

process

Salesforce.com can’t run workflows across multiple standard entities, only the primary

entity. For example, it can’t update an account status field if a case has been opened or

an open opportunity exists.

User initiated workflow Users can’t initiate workflow, it is only triggered by automated workflow rules.

Chatter workflow Users can’t initiate workflow from Chatter, only view or take action on approvals.

Parent / child workflows Users can’t initiate a child workflow from a parent workflow.

Stop a workflow Users can’t stop a workflow, only administrators can deactivate a workflow rule.

Hidden Costs

Orchestrate ProcessComposer overcomes many of the limitations

and frustrations of the native Salesforce.com workflow engine and

action plans.

$35 per user per

month

Marketing Automation: Salesforce.com provides basic campaign management capabilities without the ability to target

specific products or automate drip campaigns with time and action-based workflows.

Mass email campaigns Salesforce.com limits users to 250 email messages per campaign in Professional Edition,

and 500 email messages per campaign in Enterprise Edition. (See page 31)

Campaign multi-currency Users can’t select a foreign currency for the campaign.

Programs and related

campaigns

Parent / Child campaign relationships can be established to manage a program, however,

rollup statistics such as budget and number of responses will not rollup to the parent

campaign.

Campaign price list Salesforce.com has no mechanism to associate a special price list with a campaign.

Target products Salesforce.com has no selection of targeted products for a campaign.

Hidden Costs Marketo Marketing Automation $2,000 per month

Eloqua Marketing Automation $2,000 per month

Salesforce Automation: Salesforce.com lacks account, opportunity, and contact management capabilities required by

many companies to manage their customers. Customers must fit into the defined forecast and sales pipeline

management templates which have limited flexibility.

Account management

Users have no visibility to key account management aspects such as lead history,

competitors, credit balance and status, communication preferences at the account level,

order and quote history, account specific pricing, and payment terms.

Contact management

Salesforce.com doesn’t display the converted lead that created a contact, or track related

contracts/agreements by contact. Also, it can’t assign multiple accounts to contact (many

to one).

Order and invoice

tracking

Salesforce.com can’t pull quote or opportunity details into orders and invoices to

automate the business process and reduce clerical errors.

Product and SKU depth Users have no ability to organize products into unique units, define effective dates,

convert products into a kit, or substitute products for discontinued or out of stock items.

Page 8: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 8

Forecast / Goal insight Users have no embedded graphical view of a forecast or ability to forecast on any criteria

or metric.

Goal flexibility Users can’t change forecast categories or definitions, or assign custom time periods such

as weekly or bi-weekly.

Quotas Managers can’t submit quotas or goals to subordinates for review and acceptance or tie

child goals to a parent goal.

Contract setup Salesforce.com has no automated contract setup or option to pull contract line items

from products in the opportunity.

Contract management

Salesforce.com has no delivered process to manage allotted products or services versus

actual. It cannot track assigned product serial numbers. It has limited parent/child

contract relationships.

Contract visibility Users have no visibility to detailed contract pricing, discount terms, invoice history, or

service level without attaching the contract or customizing the form.

Hidden Costs

Vertiba Account Based Pricebooks Free/unsupported

Big Machines Configurator, Quotes, Pricing, Proposals and Contracts $20,000 and up

Right90 Sales Forecast Capture Varies

Scout Product Bundles $7 per user per

month

Service and Support: The Salesforce.com Service Cloud has been touted as a market-leading customer service solution.

The question that surfaces freqently is: At what price? Fundamental case management features and a dimensional

knowledgebase are available for additional subscription fees from Salesforce.com or its partners.

Case association Users can’t pool customers together under a common case or track customer satisfaction

related to a case.

Product-specific case

management

Users have no visibility to a contract pertaining to the case or related asset or product

serial number.

Workflow-driven case

actions

Users can’t start a script or process dialog against a case or manually trigger a workflow

within an open case.

Case routing and

escalation

Case routing is limited to specific entities and conditions. For example, users can’t

escalate or assign a case based on account owner’s assigned territory or contract status,

or prioritize a case if there is an open opportunity.

Knowledgebase and

article management

Users can’t assign multiple categories or subjects related to an article, create and manage

custom article templates, or track article comments without subscribing to

Salesforce.com Knowledge.

Customer service resource

scheduling

Salesforce.com has no service calendar with a consolidated list of service activities, nor

ability to assign resources to a service activity.

Service calendar actions Users have no option to reschedule and update service appointments, define scheduling

rules, select deployment locations/sites, or manage schedule conflicts in a calendar.

Page 9: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 9

Hidden Costs

Salesforce.com Knowledge is a multi-channel collaborative

knowledge base application.

$50 per user per

month

Stone Cobra Advanced Case Management $39 per user per

month

ServiceMax is a field service application built on Force.com

platform.

Estimated to be more

than $100 per user per

month

Reporting and Dashboards: Salesforce.com provides a basic set of tools to create reports and dashboards. Customers

with business intelligence requirements will need to subscribe to a third-party tool.

Inline visualizations Dashboards are not embedded in entity specific pages. The user needs to go back to the

home or dashboard pages.

Inline visualization

refreshes

Salesforce.com has no automatic notification to a user that a dashboard needs to be

refreshed.

Dashboard creation Users must create a dashboard from a custom report, not a standard report.

Dashboard drill down Users can’t click a specific chart component to see associated report details or drill down

into a specific chart component and display a new chart.

Analytics Users can’t create reports on any pairing of objects or entities, they are limited to record

type pairings restricted by the database schema.

Report formatting Users can’t change column headings and interactions such as drill down or navigate, nor

control report formatting such as number or date format.

Hidden Costs

Qlikview is a Salesforce.com business intelligence solution. Varies

Birst is a business intelligence appliance that can be deployed on-

premises or in the cloud. Varies

Platform: Salesforce.com is a proprietary platform with several database and architecture restrictions.

Built on open standards Developing applications requires the use of the proprietary Force.com platform and

coding in APEX and Visualforce.

Many-to-many

relationships

Users can’t add many-to-many relationships between standard entities—neither multiple

accounts to a case (several customers with the same issue) nor multiple accounts to a

contact.

Subject trees Users can’t organize products, sales literature, and knowledge base articles by subject,

they are only able to add categories and dimensions to knowledge base articles.

Conditional formatting Users have no option to add context to CRM list views by highlighting or changing fonts

and styles based on specific conditions.

Advanced find Salesforce.com can’t create criteria-based or conditional queries, only limit a search by

selecting which entities to search.

Page 10: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 10

Active Directory

integration

Salesforce.com only enables the ability to configure single sign on. Organizations must

either implement a recommended solution (as described at Force.com) or purchase a

partner solution.

Hidden Costs Salesforce.com platform limitations reduce the chances to

successfully deploy the application and achieve high user adoption.

Potential for lower

return on

investment (ROI)

Page 11: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 11

Deployment Costs

Microsoft Outlook Integration: To integrate Salesforce.com with Microsoft Outlook, you have to install an Outlook

add-on. Even with this add-on, you are limited to a background process that syncs only email, events, and tasks, leading

to lost productivity such as spending extra time looking up account history or determining if there are customer issues

that could adversely affect an opportunity.

Automatic email tracking Salesforce.com does not create email message activity records that are linked to the

original messages in Microsoft Outlook.

Multiple duplicate records

added to Salesforce.com

Without duplicate detection, multiple entries can be synced from Outlook to

Salesforce.com For example, where more than one person is trying to sync the same

entry from their Outlook contacts.

Global Address Book

synchronization You must use a partner application to synchronize your LDAP server with Salesforce.com.

Blank records added Salesforce.com has the potential to create blank records in Outlook.

HTML and rich text email Rich text or HTML email messages are converted to plain text when synchronized with

Salesforce.com.

Event synchronization

Salesforce.com will not sync with some Outlook Event conditions. Examples include 1)

recurring events, 2) all-day events (with certain criteria are applied), 3) event attendees,

and 4) multi-day events.

Corporate and federal

compliance policies

In the United States, Section 508 of the Americans with Disabilities Act requires that

federal agencies’ electronic and information technology is accessible to people with

disabilities. Salesforce.com for Outlook isn't fully 508-compliant and doesn't currently

support single sign on.

Customization If you rename tabs in Salesforce.com, such as changing Contacts to Candidates, those

new names aren’t reflected in Outlook.

Hidden Costs

Ping Identity Cloud Identity Solutions for Salesforce provides single

sign on by using Active Directory federation and automated cloud user

provisioning.

Pricing not

published

Riva Integration Server offers server-side integration between

Salesforce.com and Microsoft Exchange.

$195 per user

per year

Salesforce.com administrators can spend significant effort cleaning up

duplicate and triplicate records caused from Outlook. High

Invisible CRM SalesDesktop brings all Salesforce CRM objects to the

native Outlook environment.

$18 per user per

month

Supporting mobile and offline users: Salesforce.com customers have a single deployment option. There is no on

premise or partner hosted model.

On premises deployment Cloud deployment is the only option.

Offline Limited offline capability delivered through a briefcase. Doesn’t include forecasts, cases,

or reports.

Multiple device support

per user

A limit of one mobile device can be assigned to a user—for example, cannot use both an

iPhone and iPad.

Page 12: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 12

Mobile reports Can’t view reports or data behind mobile dashboards, only the chart (See page 53).

Fragmented mobile

applications

CRM and Chatter mobile applications are separate, and the devices supported for Chatter

are not necessarily the same devices supported for CRM.

Incomplete mobile device

support

Salesforce.com Mobile for Android is a beta product, and it does not offer iPad or

Windows Phone support.

Access to all objects via

mobile device

Mobile Lite can’t access all standard objects such as Campaigns, Contracts, Products, or

Forecasts or any custom objects.

Hidden cost:

Salesforce.com Mobile Edition

$50 Per User /

Month (Included

w/ Unlimited

Edition)

Salesforce.com Offline Edition

$25 Per User /

Month (Included

w/ Enterprise

Edition +)

Migrating CRM Data: Like many CRM vendors, Salesforce.com provides an import wizard to migrate CRM account and

contact data. Customers who deploy Salesforce.com burden their implementation teams to migrate CRM data such as

opportunities, cases, activities, contracts, orders, and invoices using desktop or third-party applications.

Import multiple entities

To import CRM data such as opportunities or cases requires the use of a desktop tool,

the Force.com Apex Data Loader. This tool allows you to import one file to one entity or

object at a time, not one file to multiple entities or objects.

Import restrictions The import wizard allows a maximum of 50,000 records at a time; otherwise, accounts

and contacts need to be split into separate import files using the Apex Data Loader.

Data quality Salesforce.com does not have option sets / picklists for states and countries which can

create data inconsistency.

Hidden Costs Informatica Cloud Standard provides an enterprise-grade data

import and quality tool. $3,000 per month

Data De-Duplication: Salesforce.com does not have real-time de-duplication prevention capabilities.

Duplicate prevention Salesforce.com has no mechanism or alert to prevent duplicate records upon user entry.

Duplicate finder Salesforce.com has no feature or report that scans the database to identify duplicate

records.

Limited de-duplication

objects

De-duplication import rules are limited to the Leads, Accounts, and Contacts objects.

Other imported records, such as custom objects, can only be de-duplicated if the record

name, Salesforce ID, or external ID is provided.

Hidden Costs

CRM Fusion DupeBlocker stops the users from being able to create

duplicates in real time.

Maximum of $5,000

per year

CRM Fusion Demand Tools clean duplicate objects of any type

directly from your Salesforce CRM system

$2,500 to $5,000

per year

Page 13: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 13

Application Support Costs

Application Administration: Companies often find that they have to spend extra time maintaining Salesforce.com

because of limited standard support offerings and no service level agreement (SLA).

Announced features that

are really private beta

Salesforce.com often announces new features as private beta or limited pilot well in

advance of general availability, confusing prospective customers and current users.

Automatic upgrades, no

customer choice

Salesforce.com historically released three updates annually, placing a heavy burden on

CRM administrators. Customers receive upgrades at the designated time assigned by the

vendor, not at their choosing.

No SLA Salesforce.com has no financially backed SLA.

Premium support

positioning

Salesforce.com markets and sells a Premier Success Plan offering as an alternative to its

Standard Success Plan, which is limited to online case submission, 12x5 phone support,

and two-business-day responses.

Developer and advanced

technical support

When Force.com developers experience a problem, they usually have to visit a forum or

Twitter group to resolve it, as Salesforce.com standard or premium support offerings do

not always resolve custom object or developer technical issues.

Hidden Costs

Premier Success Plan offers faster response, 24x7

coverage, and expanded training course access.

15 percent of license list price for

Professional and Enterprise Editions

Premier Administrator offers access to a pool of

Salesforce Certified Administrators who can

configure and maintain a Salesforce.com edition.

10 percent of license list price for

Professional and Enterprise Editions

Data Archiving and Restoration: Salesforce.com does not provide enterprise-class data archiving, restoration, and

compliance capabilities with the core application. Customers can manually monitor their data storage limits and run

basic data archiving processes, or invest in partner applications to automate and comply with corporate data retention

policies.

Data archiving Salesforce.com has no automated data archiving tool to archive records based on age or

other conditions.

Parent-child data

archiving

Salesforce.com provides tools such as the Apex Data Loader or Mass Delete process that

limit the archiving (delete or export) process to single entities for each process—users

can’t select multiple entities in one archive process.

Data and file storage

limits

Edition Data Storage File Storage

Professional Minimum per instance = 1 GB

Maximum per user = 20 MB

Minimum per instance = 11 GB

Maximum per user = 612 MB

Enterprise Minimum per instance = 1 GB

Maximum per user = 20 MB

Minimum per instance = 11 GB

Maximum per user = 612 MB

Unlimited Minimum per instance = 1 GB

Maximum per user = 120 MB

Minimum per instance = 11 GB

Maximum per user = 612 MB

Data center limitations Data centers are leased from a third-party web-hosting facility, Equinix, in North America

and Asia. Salesforce.com does not have a data center in Europe.

Storage double counting

Person accounts count against both account and contact storage because the API

considers each person account to consist of one account as well as one contact. Archived

activities count against storage.

Page 14: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 14

Sarbanes-Oxley

compliance

Salesforce.com provides front-end revenue process compliance features such as

approvals, audit history, and the option to connect the API to an order management or

billing system for Enterprise and Unlimited Edition customers. Professional Edition

customers, however, will need to utilize third-party applications to comply with the U.S.

Sarbanes-Oxley Act (SOX).

Restoring data

Salesforce.com creates new record IDs when restoring data. The previously linked related

data (such as contacts and activities related to accounts) will not automatically be linked

to the restored records.

Configuration and code

backup

Salesforce.com has no ability to backup and restore configurations, customizations, or

APEX code without a sandbox.

Sandbox refreshes Full sandboxes can only be refreshed every 29 days, which makes it difficult to keep

sandbox and production instances in sync on a frequent basis.

Hidden Costs

Sesame Software Relational Junction allows you to load an

entire Salesforce.com site into a local database. $1 per user per year

Salesforce.com Additional Data storage $250 per GB per month

Salesforce.com Additional File storage $5 per GB per month

Bluewolf Salesforce Data Replicator allows you to back up

Salesforce CRM data to handle Sarbanes-Oxley compliance. $8,500 per year

Page 15: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 15

How to Avoid Salesforce.com’s Hidden Costs

Asking the right questions helps organizations to avoid unwanted surprises after a contract is signed. To help you avoid

this undesirable situation, you might consider reviewing the following topics with Salesforce.com before you sign a

contract.

If I don’t use all my Salesforce.com licenses as planned, will Salesforce.com allow me to decrease the number of

users before the end of my contract?

Please provide an estimate for implementation charges from either Salesforce.com or a system integration

partner. If Salesforce.com claims that no implementation charges are needed, inquire what those charges might

be if the project doesn’t go successfully.

If I want to have my CRM system work like Outlook, what options exist and what are the associated costs?

Would you describe your licensing model for extra storage? Would you help me estimate my storage costs over

a one, three, and five year period?

How does Salesforce.com integrate with SharePoint for content and collaboration? Please provide an estimate of

how much a Salesforce.com and SharePoint integration will cost.

How much will it cost to add a mobile client for each of our users?

If my organization wanted to have iPad support for Salesforce.com CRM, how much would that cost?

Workflow, or the ability to ensure certain activities follow a certain process across the organization, is an

important piece of functionality for my company. If my organization needed to trigger a process from any piece

of data in CRM, could it? If not, what is the associated cost to enable this functionality?

Our organization would like a Service Level Agreement (SLA) to ensure Salesforce.com is committed to providing

uptime at the level that our organization requires. I understand Salesforce.com does not offer an SLA, but will it

allow customers to ―license‖ one? How much, and for what level of service?

Data de-duplication is important to ensure that our organization is making decisions on quality customer

information. Please help me understand how Salesforce.com identifies and prevents duplicates, and what

additional costs might be needed to ensure a high degree of data quality.

If my company should someday decide to use a different CRM vendor, are there any charges for getting a copy of

my organization’s data? In a flat file format (eg, *.csv)? What about in a relational format?

Page 16: Counting the Hidden Costs of Salesforce · 2015-09-29 · Salesforce.com Hidden Costs Page 4 For these reasons, organizations evaluating Salesforce.com should understand the cost

Salesforce.com Hidden Costs

Page 16

Select Microsoft Dynamics CRM Customers

Magma Design Automation: Switched from Salesforce.com to Microsoft Dynamics CRM Online

for better reporting, insight, and flexible change processes. Realized:

Reduction in IT administrative workload: Two-thirds

Reduction in customer support calls: 50 percent

Reduction in internal support tickets: 80 percent

Savings in software licensing costs: More than 70 percent

Savings in support costs: $200,000

Expected increase in sales productivity: 50 percent

Syncsort: Increased user adoption and reduced costs with Microsoft Dynamics CRM.

Smead: Reduced costs by 75 percent by switching from Salesforce.com to Microsoft Dynamics

CRM Online.

Data Reduction Systems: Reduced user costs by 50 percent and increased user adoption 100

percent.

New Orleans Hornets: Chose Microsoft Dynamics CRM over Salesforce.com.

Panduit: Switched from Salesforce.com; increased productivity 20 percent and, adoption rate 90

percent, achieved ROI in 10 months.

Taylor Corp / IGH Corporation: Switched from Salesforce.com and increased user adoption by

246 percent.

©2012 Microsoft Corporation. All rights reserved. This document is provided "as-is." Information and views expressed in this

document, including URL and other Internet Web site references, may change without notice. This document does not provide you

with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal,

reference purposes.

27jan12