Salesforce License Cost, a Seller’s Market
Moving your business into the cloud or buying a house? These markets are comparable and we will share 3 important factors in making your decision. You have to understand the initial investment, what features move your wallet and what the maintenance cost are may experience.
Every day an emerging small businesses (ESB) or start-up is launching. They are filled with high energy, lean operations and determined to have the next world changing idea. Where cost are extremely important and spending is squeezed to identify the highest return, they need to evaluate their move to the Cloud. These companies are like the newlyweds in their starter home. They have just enough space to operate but yet still be very intimate. This is important in establishing your home, the business structure, and usually has enough room for a plus 1. It will not be long and you will be a Small Medium Business (SMB).
The ESB needs to make a smart decision that allows project growth where they can accelerate without slowing down. Understanding Salesforce License Cost and moving to a CRM is very important. Just like in home buying there are many options. You need to determine a location which is centered around your daily activities (close to highway, close to good schools, local parks, downtown, etc) these characteristics determine your position of which platform you will build on and where.
In the CRM space you have Salesforce, Microsoft, Zoho, Sugar, ACT, there are so many options to choose from (Top 40 CRM Vendors). With Salesforce being the most innovated company and leader in the space there are easy reason to select this platform. We are not going to evaluate the different home builders but examine one, Salesforce, the Salesforce License cost, features that impact price and on-going cost to keep the house at the market value.
Understand the initial investment, Salesforce License Cost
Main Street, Any Town, USA – you need CRM but it’s not that simple. There are many options from each vendor. Related to Salesforce as your home supplier we will showcase 3 models that are frequently purchased. Do you remember when there was just “Salesforce” without so many variations? The competitive market today has segmented the cloud severely so shoppers need to understand all the factors clearly to avoid overpaying in a seller’s market.
Salesforce License Cost
- Professional Edition – list price is $65 user/month
- Enterprise Edition – list price is $125 user/month
- Platform Edition – Enterprise App list price $25 user/month
It is important to note that you can’t mix Salesforce Licenses between Professional and Enterprise but you can mix these two with Platform Edition. You also can add on a special Salesforce License type called Chatter Paid which is listed at $15 /user/month. Salesforce License allows you to have different functionality and features. In this point we will address functionality and how it relates to the Salesforce License you chose.
Professional and Enterprise editions both come with the core standard objects (Leads, Accounts, Contacts, Campaign, Cases and Opportunities). What you have to determine is who within your organization needs access to CRM and what the roles are. Identifying roles will directly impact Salesforce License cost.
Roles that need read + write access to core objects (outside of Accounts and Contacts) will always require a full CRM core Salesforce License. If a role only needs read access to Accounts and Contacts but will work in other non-core objects (custom) then these Salesforce License users should use Chatter Paid or even Platform. The advantage and difference with Platform is that you have read + write access to Accounts and Contacts. Also known as CRUD (Create, Read, Update & Delete). Platform is designed to give you the foundation of Salesforce without the CRM core objects so you can build your own apps or business processes.
What Features Move your Wallet
These are basic features that each edition provides in addition to the previous edition. (Contact, Group, Professional, Enterprise, Unlimited, Performance)
The Maintenance Cost
The initial investment will be expensive. You are moving into the cloud but these are one time hits and here are a couple to plan for.
- Data Migration – you have all your data in a spreadsheet or in a legacy platform or another CRM. You need to get this data massaged for import. The majority of this work is done outside of Salesforce. The Salesforce License you purchase may not allow for API connections which tools like DataLoader Salesforce provides you with an import wizard which helps but is not always the best choice for ETL operations. However, you can ask your Salesforce AE to enable API for a few weeks for this exercise. Once you have the fields established in Salesforce the focus now turns to Data Quality and Data Relationships. Tip: in order to import historical system date/time fields (created date, last modified date) you need to open a case with Salesforce to enable System Modifiable Fields.
- Salesforce Consultants, like Cloud Co-Op are specialist trained and certified to perform implementations, business process reviews and end user training. Most SI’s (System Integrators) are proficient in this operation, a quick start. One difference we offer is our implementation times are less allowing us to focus more on business process and coaching. Our strategy is not to build a box but to design a strategy for growth.
You option here is do it yourself or hire a professional. Moving furniture is not brain surgery. Buy some pizzas, some cold drinks and invite your friends over. This was good when you were changing dorms or moving into your first apartment with your best friend. However, when you move into the cloud things take on a different meaning.
What’s the value of a broken web2lead process, lead assignment not routing, when you are too busy to create a report to give you the business intelligence to make the next move. We believe it is important to focus on your daily operations and allow this lifting to experts that deal with it weekly. There are certain things a mover knows to do and look for based off of experience that a novice weekend warrior will fail at. Data Migration and hiring an implementation firm are smart decisions that allows you to stay agile and keep forward progress.
When you self- implement you risk a higher percentage of adoption falling short, your team returning to their old habits and losing your ROI.
Salesforce Licenses are billed annually but we’ve seen quarterly and semi-annually from time to time. There is an option for auto-renewal but this is a disservice preventing you to renegotiate terms or reevaluate your Salesforce License Structure.
After initial setup the maintenance cost are very low, in fact you may never experience any. You do have an option to purchase Premium Support that gives you access to training and support but a very high percentage of companies never use it and will drop this add-on sale during renewal.
You will however, experience upgrade cost. Just like in our analogy of buying a house, sometimes you want to replace the carpet for wood floors, upgrade the blinds, paint the walls, the list goes on. The business will grow and your processes will mature and require new features or add-ons. These upgrades will generally come from the AppExchange or through custom development of your own (remember Salesforce Licenses Roles for Platform Edition).
You may use Cloud Co-Op’s Concierge Services to help you vet applications for your new business process and what Salesforce Licenses you need for the business roles using the new process. It is inevitable growth is going to occur and these cost only add to your total cost of owners when moving into the cloud. It is important here maximize the edition you are on and utilize as much as you can when each major release is published by Salesforce.
When selecting Apps from the AppExchange you will identify two partners, the Salesforce ISV and the OEM supplier. The ISV application requires that you have Salesforce Licenses already. This is simply an add-on to the existing edition/platform. The Salesforce OEM supplies is a stand-alone product which doesn’t require Salesforce Licenses. You can purchase their application outside as they have embedded the Platform Edition within and around their application for your use. You are essentially buying Platform Edition with a Custom Application which the price is determined by the OEM provider. In purchasing an OEM application when you already have Salesforce Licenses, your will increase more than with an ISV because of the baked in Platform licenses.
We hope you enjoy your new home in the cloud and knowing what Salesforce Licenses to select directly impacts your burn rate for the next 12 months. Salesforce gives you the options to grow regardless of the edition you start with. Salesforce is the most advance and stable cloud based CRM in the market that is feature rich and backed by a user community second to none.
If you need a broker to help negotiate your Salesforce License purchase then contact us today. We are investing in you because we support the community you live in. Cloud Co-Op the consent factor to Cloud Ownership. Make your move today.