SugarCRM and Salesforce.com – A Tale of Two SaaS Strategies

I had a great long holiday weekend – especially since over the last two days of it I got to see my Phillies score 35 (yes, 35) runs in two games…now, if they only had a crack reliever and setup man in their pen (oh, and if their starters were as solid on the mound as they were on paper in April)…

But that’s another story…

I took a look over my accumulating Google alerts over the weekend to see that Salesforce.com has announced a new data center in Singapore.

Good for them…

But the timing is a bit funny – as many Salesforce.com announcements are, in that they tend to follow SugarCRM announcements in a similar fashion. I am not saying Salesforce is playing catchup to Sugar’s DCE announcement last week. In fact, Salesforce.com MUST add data centers around the world – or it is dead in the water.

But that is just the thing. Sure, SugarCRM will add international data centers – one is already underway in Europe as we speak. What is more important is that we will in essence have dozens (if not more) data centers providing vertical or localized editions of SugarCRM provided by a top class partner network that spans the globe.

So, Salesforce.com can invest millions on a highly inefficient and outmoded SaaS infrastructure and replicate that as many times as they want in global data centers. SugarCRM, on the other hand, can add data centers as needed, but also have countless SaaS options for its customers around the globe in less time, for less cost to the customer, and with less overhead even on Sugar’s part.

You tell me which is the better long term vision…

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