Real Estate, the Recession and the Value of the SugarCRM Platform

I just had a great talk with the always erudite and enlightening Brent Leary. We were talking about some of the great news coming out of SugarCRM – namely the IBM and Hubspot partnerships.

In our discussion I made an analogy that I wanted to share. We were talking about how SugarCRM has not been all that vocal about our enterprise or general upmarket strategy – but we’ve been killing it in the SMB space for ages. But I think that we are going to make a lot of waves in larger enterprises thanks to Sugar being an amazingly scalable yet cost-effective platform to do…well, just about anything process or data-oriented.

That’s when I made the parallel between the real estate industry in the downturn and how SugarCRM can and will bring major value to enterprises.

For most people buying a $200,000-$350,000 home in 2011, that home was probably as high as $550,000 in 2005 in the height of our collective insanity (AKA the sub-prime mortgage world). That is a great value today and many people love that they can have the American dream without paying an arm and leg. That is the typical SugarCRM value proposition – a strong, logical value over the proprietary alternatives.

But in the enterprise, things are different – in a far more profound manner. Enterprises are like the much more affluent family buying a home valued at $2 million – which would have been $5.2 million in 2005. In comparison, this is a FAR greater value – even with a still seemingly high price tag.

SugarCRM is lucky to be both – the platform is so flexible, scales both up and down, and is intuitive for all users and developers. So, the smaller businesses get a great, ready-to-go solution, while enterprises can take advantage of the extensive platform and build amazing web applications and user/customer experiences to drive loyalty, save $millions and differentiate in their markets.

So, maybe it isn’t the best analogy – but it is worth noting that Sugar is a rare platform in its ability to be so well-suited for the smallest to the largest organizations. Pretty cool.