Comments on: AppSpace Looks Great but Too Expensive http://itredux.com/2007/03/20/appspace-looks-great-but-too-expensive/ New Rules for a New IT World Tue, 14 Oct 2008 11:55:56 +0000 http://wordpress.org/?v=2.5 By: Dennis Howlett http://itredux.com/2007/03/20/appspace-looks-great-but-too-expensive/#comment-60119 Dennis Howlett Sun, 25 Mar 2007 06:23:58 +0000 http://itredux.com/blog/2007/03/20/appspace-looks-great-but-too-expensive/#comment-60119 I don't necessarily agree, but then it depends on how pricing has been worked out. A 5-person team taking this on at full price, assuming they take access to most of the applications in AppExchange, would maybe shell out $30K tops in a year. Assuming this allows them to give access to (say) 200 customers to whatever information they'd like to self-serve, plus the potential to provide real functionality... The economics stack the other way very quickly when compared to human costs. I'm not saying it is that simple, because there's enough doubt in what access really means in Salesforce.com license terms to leave a significant potential query on my numbers. Either way, I agree that Salesforce.com pricing needs to be more coherent. I rather suspect Salesforce.com won't be the only vendor under the pricing spotlight as the SaaS model rolls out. I don’t necessarily agree, but then it depends on how pricing has been worked out.

A 5-person team taking this on at full price, assuming they take access to most of the applications in AppExchange, would maybe shell out $30K tops in a year. Assuming this allows them to give access to (say) 200 customers to whatever information they’d like to self-serve, plus the potential to provide real functionality… The economics stack the other way very quickly when compared to human costs.

I’m not saying it is that simple, because there’s enough doubt in what access really means in Salesforce.com license terms to leave a significant potential query on my numbers. Either way, I agree that Salesforce.com pricing needs to be more coherent. I rather suspect Salesforce.com won’t be the only vendor under the pricing spotlight as the SaaS model rolls out.

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