VENDORiQ: Zoho Turns 25. Who the Heck Are They, and Why Do We Get CRM Procurement So Wrong?
18 March 2021: Zoho is a privately held, Indian, Cloud-based CRM vendor that has grown rapidly internationally. It has just turned 25 years old. While it’s CRM suite is not as sophisticated as that of SalesForce, it is supported by a suite of low-code development tools and marketing-oriented modules for small to mid-sized business.
Why it’s Important
IBRS has noted that many Australian organisations - in particular the public sector - are only short-listing Salesforce and Dynamics for modern CRM. This is often due to the research into available CRMs being exclusively limited to vendors in leading positions on US-focused market research papers, or advice from consultancies that only refer to such public materials.
To ensure the best suite at the best cost-point is selected, IBRS strongly recommends that the following be considered during the shortlisting process:
- Be sure to explore niche CRM products, as some of these may have a better fit or specific industry sector focus that can deliver benefits more quickly and at significantly lower costs than the leading products. Just because a solution as complex as a CRM is leading the market, does not mean it is necessarily the best for your organisation.
- When reading international reports, keep in mind that North America and Europe have different technology market ecosystems to Australia. In particular, skills availability (and therefore costs) differ. Be sure to factor in local issues.
- Carefully consider your starting point. How complex is your software environment? Factor your organisation’s networking infrastructure and the integration requirements both immediate and longer term.
- Leverage the channel capabilities and skills of local implementation partners. Implementation partners play a significantly greater role in a CRM’s successful implementation than the product itself. It is therefore vital that buyers not only consider the product in question, but also the available partners.
The ultimate impact of limiting modern CRM (and related digital services) to the major vendors is that organisations may find themselves paying for far more than they need in a system, while also introducing more complexity into business operations than is necessary.
IBRS is not suggesting that Zoho (or any of the other niche CRMs from the myriad available) is right for your organisation. Salesforce and Dynamics are exceptional products. However, many organisations do not need exceptional: they simply need more than good enough for their current and future needs, and they need it quickly and at the right cost point.
- Digital platform leads
- Procurement teams
- Business units executives
Shortlists are critical for keeping procurement agile and within scope. However, do not short-change the shortlisting process by relying on generic reports that do not factor in:
- specific industry needs
- the Australian context
- local channels and skills
Related IBRS Advisory
- Trends for 2021-2026: No New Normal and Preparing For the Fourth-wave of ICT
- VENDORiQ: Salesforce Introduces Hyperforce
- Salesforce vs Dynamics
- CRM Modernisation Part 5: Microsoft Dynamics vs Salesforce Total Cost of Service
- IBRSiQ: Can IBRS Review Our Dynamics365 (D365) Licensing Calculations?