Neil Barton

Tuesday, May 05, 2009

$30 per user per month for CRM

An interesting article by Paul Greenberg on ZDnet yesterday describes SugarCRM as offering their open source CRM product per month for $30 per user per month, or $50 for the Enterprise edition which includes tools and customer support.

This is, apparently, the same whether you run the software on your own premises or "on-demand", which presumably means on a shared system at SugarCRM's data centre. The unanswered question is: why they should be the same price? The "on-demand" version must surely include stuff that the "on-premise" version doesn't: at a bare minimum data centre hosting space and power, but perhaps also ownership and management of servers.

An apparently simple pricing scheme is hiding something here.