A new opp for Indian outsourcers--if they take it

Steve Hamm

I had breakfast yesterday with Zach Nelson, CEO of NetSuite, one of the up-and-coming on-demand software outfits. NetSuite, which sells run-the-business software delivered over the Net as a service for small to medium-sized companies, has 7,000 customers and is growing at about 60% a year. As Nelson contemplates the company's next wave of growth and maturity, he has begun talking to Indian tech services outfits about getting into the business of offering configuration services for NetSuite clients. This would help NetSuite expand faster. While the several weeks that it takes to set up a business on NetSuite is nothing compared to the months or years it takes in install big traditional software packages from SAP and Oracle, there is some complexity in the job.

So far, Nelson isn't getting a lot of traction. The Indian firms are still focused on large enterprise and implementing those traditional applications. And no wonder. Their sales forces and marketing are all built around addressing large companies, and they have plenty of growth potential there. But I think the Indians would be smart to put their toes into these on-demand waters. They could set up configuration factories and handle a steady stream of customers that NetSuite sends their way--and do things with the scale and efficiency that are their strengths. Plus, over time, as the on-demand model continues to gain popularity with corporations, even big ones, they'll have the skills and capabilities to take on what could be a rapidly growing business.

No sooner did I write this item when this news release came into my e-mail queue:

Deloitte Consulting and Salesforce.com Announce Strategic Alliance to Bring Salesforce Suite of On-demand CRM Applications and the Apex Platform to Enterprises Worldwide

Deloitte Consulting Will Incorporate salesforce.com On-demand Business Applications into Its Consulting Service Offerings

SAN FRANCISCO, Jan. 30 /PRNewswire-FirstCall/ -- Salesforce.com
(NYSE: CRM), the technology and market leader in on-demand business services, and Deloitte Consulting LLP (Deloitte Consulting) today announced a strategic alliance to bring on-demand customer relationship management (CRM) and other business applications built on the Apex on-demand platform to enterprises worldwide. Salesforce.com and Deloitte Consulting will provide business and technical products and service capabilities, respectively, to help organizations in their efforts to implement customer relationship management solutions. As part of the strategic alliance, Deloitte Consulting will incorporate the award-winning Salesforce suite of on-demand CRM applications and the Apex on-demand platform into its existing consulting service offerings. Such service offerings will combine Deloitte Consulting's delivery of leading-edge business consulting services, integrated with on-demand business applications from salesforce.com, to help organizations in their efforts to realize value and generate measurable business results from the technology.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO )

With more than 3,500 practitioners who bring industry-specific CRM knowledge, leading CRM business process alternatives, and experience with
on-demand, multi-tenant CRM technology, Deloitte Consulting offers CRM-related services across all major markets and industries. Deloitte Consulting has differentiated itself in the CRM market with an integrated customer service offering that illustrates how it can help clients in their efforts to implement an end-to-end solution. Deloitte Consulting's Customer Transformation Offering provides a framework for applying strategy, process, technology and operational services for marketing, sales, and service.

"The largest enterprise businesses worldwide are realizing they too can take part in on-demand success," said Bobby Napiltonia, senior vice president, worldwide channels and alliances. "With Salesforce Winter '07 and the Apex
on-demand platform, companies are able to extend the benefits of on-demand applications to any part of the enterprise. As the leader in CRM, our alliance with Deloitte Consulting will help give enterprises the confidence they need to develop, customize, integrate and deploy on-demand applications with consultants they know and trust to help them address their global requirements."

"Salesforce.com's on-demand model can help change the way large organizations approach their customers," said Paul Clemmons, Deloitte Consulting Principal and Emerging Solutions Leader. "We look forward to working even more closely with salesforce.com to help our clients in their efforts to realize significant results from their on demand applications. The salesforce.com Apex on-demand platform represents an opportunity to expand the benefits of on-demand computing across many facets of an enterprise."

Apex and the AppExchange

Apex is the on-demand platform for the next generation of business applications. Apex reinvents traditional customization and integration and enables a whole new generation of on-demand applications that go beyond CRM. All Apex components and applications can be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange directory, enabling all the innovation that Apex unleashes to benefit the entire
on-demand community.

More than 500 applications that are now available on salesforce.com's AppExchange, the world's first on-demand application directory, found at http://www.salesforce.com/appexchange .

The Apex on-demand platform is generally available today. The Apex programming language is available today for developer preview, and is currently scheduled to be available in beta to salesforce.com customers later in 2007.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu" or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.

Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the U.S., services are provided by the subsidiaries of Deloitte
& Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP.

About salesforce.com

Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. Apex, the world's first on-demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. All Apex components and applications can be easily shared, exchanged and installed via salesforce.com's AppExchange directory, available at http://www.salesforce.com/appexchange . Customers can also take advantage of Successforce, salesforce.com's world-class training, support, consulting and best practices offerings.

As of October 31, 2006, salesforce.com manages customer information for approximately 27,100 customers and approximately 556,000 paying subscribers including Advanced Micro Devices (AMD), America Online (AOL), Avis Budget Group, Inc, Dow Jones Newswires, Nokia, Polycom and SunTrust Banks. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com, or call

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