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Microsoft, SAP, Oracle under threat says Salesforce boss
Stan Beer
Friday, 29 September 2006 10:33
Page 2 of 2
According to Steele, software vendors Microsoft, Oracle and SAP now have business models that have been superseded.
"Microsoft is now only growing by acquisition. It's a graveyard for old 20th century style software companies," says Steele.
"Microsoft's whole business model is selling you a CD and then threatening you a year later to update it. Our model is the opposite, once we have you on service, you get updated regularly at the same time as all other users and we do our best to keep you happy so that you stay with us. We don't have the luxury of taking customers for granted."
Steele believes that eventually al the big software vendors will be forced to adopt a software on demand model like that of Salesforce. However, he says that their biggest barrier to entry is cultural rather than technical.
"Microsoft, Oracle and SAP all say that they're going to software on demand but they're not being their money where their mouth is. They're stuck with the culture of selling software by CD."
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