Salesforce.com vs. SalesLogix
I am currently doing research on decision-based models for CRM tools and I am interested in how to compare costs associated with on-demand tools (e.g., Salesforce.com) with software-based tools (e.g., SalesLogix)? In your opinion, should you use on-demand tools or have another person maintain your SalesLogix database? Also, which tool is more functional?

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I'd be careful about calling what Salesforce.com does "tools" -- a better way to see it is as a business platform or at least as application services that are delivered via the Web. The same goes for SalesLogix as an on-premise vendor. Because when it comes to actual data security, it is a level playing field these days between hosted CRM services like Salesforce.com and on-premise software like SalesLogix. The decision around the data security for any company is based on a comfort level that is both psychological and cultural. If you're comfortable with your data being hosted elsewhere, the on-demand model is proving to be more cost effective and at the same time almost as robust as the on-premise applications when it comes to functionality. With the recent tools that are being added to customize and program on-demand such as Apex (by Salesforce.com) the actual programming tools are roughly equal. All in all, the on-demand model is generically more palatable than the on-premise license model.

That said, there is no way to determine whether Salesforce.com or SalesLogix is "better" than the other, since both are high-caliber products and both do somewhat different things. As every company has different technical and process requirements, different comfort zones, different budgets and different cultures, Salesforce.com might be good for one company while SalesLogix will be good for another.

There really is no other fair answer to this question. If you need to know more, feel free to submit another Ask the Expert question to my category: Evaluating CRM software or write to me at paul-greenberg3@comcast.net.

This was first published in December 2006