The Village View

Tuesday, February 21, 2006

Database Problems behind Salesforce’s Woes


Sources close to the company have confirmed to The Enterprise Software Observer that recent outage problems at are being caused by the on-demand company pushing its Oracle database to its limits.

In addition to causing me a slight, mid-afternoon smile, this news brought up the following thoughts:

- Obviously, these outtages are negative news for both Oracle and SFdC. However, I think the quote by SFdC competitor RightNow's CEO Greg Gianforte is spot on, "“Continued outages could set the entire software as a service industry back." How much harder did it just get for some sales manager to convince his boss to bypass IT and get a hosted CRM/SFA system up and running? Risk, namely risk of not being able to access sales/customer data or of losing said data, is a key hurdle in moving SaaS from the early adopter to the mainstream market. Even if RightNow or NetSuite pick up a few SFdC customers, these outtages are net/net a negative for all players in this market.

- What do you think the folks at NetSuite think of Larry's quote about his invesment in SFdC: " I'm an investor in Salesforce, and I want to see my investment go to zero?"


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