Gartner Research

When, and When Not, to Pay the Salesforce Price Premium

Published: 31 October 2016

ID: G00314072

Analyst(s): Adnan Zijadic , Theodore Travis

Summary

Salesforce has the highest average subscription price for CRM applications. Gartner customer evaluations indicate that Salesforce can be as much as twice the subscription price of its competition. We explore, for application leaders supporting CRM, when and when not to pay the price premium.

Table Of Contents
  • Key Impacts

Analysis

Impacts and Recommendations

  • Salesforce's brand equity provides a level of trust for application leaders supporting CRM, but it does not guarantee success
  • Salesforce's track record of innovation delivers good value for application leaders supporting CRM who are trying to stay in front of the technology curve
  • Salesforce's proprietary platform, Force.com, scales well for simple to complex applications, primarily within B2B but with a certain amount of noncomplex B2C, thus improving application agility for application leaders supporting CRM to meet changing business requirements
  • Salesforce's ecosystems, especially those built on Force.com, enable application leaders supporting CRM to efficiently fill CRM "white space" in the Salesforce application footprint
  • Salesforce's proven track record of efficient release upgrades provides application leaders supporting CRM with a level of certainty and predictability for key application management expenses

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