{"id":57987,"date":"2012-03-13T18:58:23","date_gmt":"2012-03-13T17:58:23","guid":{"rendered":"https:\/\/visionarymarketing.com\/?p=57987"},"modified":"2020-10-17T19:17:15","modified_gmt":"2020-10-17T17:17:15","slug":"sugar-crm","status":"publish","type":"post","link":"https:\/\/visionarymarketing.com\/en\/2012\/03\/13\/sugar-crm\/","title":{"rendered":"Sugar CRM: the rise of a new customer relations champion"},"content":{"rendered":"

\"\"<\/a>This is the third Sugar CRM<\/a> executive to be interviewed by visionary marketing.com. My first interview took place two years ago with Larry Augustin, CEO and founder of the CRM company, who is also one of the people who coined the phrase: \u201copen source\u201d. After a brief Skype encounter with the company\u2019s marketing executive Jan Sysmans last year, I now had the chance of spending some time with Tom Schuster, VP EMEA of Sugar CRM. Let’s see what’s happening in Europe concerning the development of CRM usage in this exclusive interview with took place a few weeks ago.<\/em><\/p>\n

Sugar CRM: the rise of a new customer relations champion<\/h2>\n
\"Sugar<\/a>
Sugar CRM: the rise of a new customer relations champion<\/figcaption><\/figure>\n

Sugar CRM: not as known as Salesforce but doing frightfully well<\/h3>\n

Larry had explained his plans 2 years ago, and 2 years later, we can say that \u201che has delivered on his plan\u201d Tom said. Sugar CRM has been through phenomenal growth and is becoming, according to him, the \u201cfastest-growing CRM company in the world\u201d. So, what are the numbers?
\n<\/p>\n

Sugar CRM grew by\u00a0 52% in 2009-2010, and 67% 2010-2011 and the company has been cash positive since the end of 2010. Whereas it is still less known than Salesforce, which was started in the 1990s, Sugar CRM is broadly recognised. \u201cIt\u2019 a fantastic company\u201d Tom Schuster added, \u201c in 2012,\u00a0 we are planning 100% growth in Europe!\u201d
\n\"image\"<\/span><\/strong><\/p>\n

A foray into the high-end market \u2026 with a little help from IBM<\/h3>\n

\"images<\/a>Sugar CRM is in its 7th year of operation. It is most active with mid-market customers (i.e. with 100-150 users), but in the last 6 months, the company generated more activity with higher-end customers (those with 1000+ users).<\/p>\n

\u201cThis is a space we didn\u2019t target at first, but in which we are definitely getting\u201d stated Tom Schuster.<\/p>\n

This hasn\u2019t been quite left to chance though; for \u201cSugar CRM has a strong relationship with IBM and work very closely with them in the field\u201d. This is what is driving a lot of growth.<\/p>\n

Tom has actually seen an acceleration of his business since Q4 2010. According to Tom, Sugar CRM is \u201cnow in 3rd position globally in terms of users, with Salesforce at the top of course.<\/p>\n

The open-source company \u201ccan now boast well over 800,000 seats worldwide and this is still accelerating\u201d added Schuster.<\/p>\n

Close integration with IBM has also been worked out from a technical point of view (concerning the Cognos and Lotus product lines). IBM helps Sugar CRM address both the mid-market and very high-end customers.<\/p>\n

Sugar CRM in the magic quadrant<\/h3>\n

\u201cThere are between 200,000 and 350,000 users in Europe\u201d Schuster added, \u201cthis is pretty big business\u201d. And Forrester gave the company an accolade by placing it in the leader portion of its CRM magic quadrant, i.e. not just celebrating the company\u2019s vision but also its execution capabilities.<\/p>\n

The rise of open source<\/h3>\n

\u201cOpen source is now able now able to compete with regular software publishers\u201d Tom Schuster went on. This isn\u2019t new if you include open source stars like EZpublish (of which I am a client), Drupal or Joomla for instance. Yet, Sugar CRM is the first in the application arena to make such a big breakthrough. \u201cWith Sugar CRM we are going beyond mere open-source software\u201d Tom developed. \u201cthe code is free and can be changed, but building a business on that concept of openness and community is mostly a matter of state of mind and attitude\u201d he rightfully added.<\/p>\n

3 main focus areas: social, cloud and mobile<\/h3>\n

There are 3 areas for the development of Sugar CRM. Let\u2019s review them now:<\/p>\n

    \n
  1. Social: of course, our readers know about that; this is a very hot topic at the moment. The real issue is to know how to position the software in the future when social becomes very big, that is to say probably very soon. \u201cLotus live, Web conferencing, messaging systems, LinkedIn data, Twitter data are all interfaced, and it’s a new way of working with\u00a0 CRM software\u201d Tom Schuster added. Hirleo (an Israeli company) and Portuguese Gulf are already using Facebook as the main gate to their CRM system. Younger workers want to work with new-fangled applications, and social media is their favoured starting place. \u201cMost of the marketing data are in the social media space anyway\u201d added Schuster, so the challenge is on how one regains ownership of that data.<\/li>\n
  2. Cloud: can be run anywhere. But it can also be transferred from one hosting service to another. For instance, \u201cone can get started on Sugar CRM with an Amazon cloud infrastructure and then move it somewhere else, and this doesn’t cost anything in terms of licence\u201d Tom Schuster went on. This transfer capability is \u201ctransparent to them\u201d Schuster added, \u201cSugar’s code is free, and this is a lot more than a buzzword. It’s a movement, and while many have old sheep in new clothes, this isn\u2019t the case with Sugar\u201d he added. \u201cCloud means you choose your service and don’t even know where it is coming from\u201d Schuster detailed. Sugar CRM have their own hosted on-demand service, fully replicated. It also exists on Amazon, which means that when you buy their hosting service, you may choose to get Sugar CRM directly while benefitting from all of Amazon’s cloud features. \u201cit’s really revolutionary\u201d Schuster added, \u201cyou have more control on your data, and you can move them 100% without loss and additional cost.<\/li>\n
  3. Mobile: \u201cmobile usage has rocketed up,\u201d said Schuster, therefore confirming what I have witnessed over the years too. \u201cas of 2010, only a very small fraction of B2B usage was made by mobile,\u201d he said. \u201c2011 saw a huge rise in mobile usage of CRM, up to 15% of total usage,\u201d Schuster said, \u201cbut it\u2019s growing fast now\u201d. [note: Orange.com mobile usage also amounts to 15%, therefore confirming Tom\u2019s numbers. As of 2010, mobile usage on Orange.com was limited to 10%]. Sugar now exists in 2 different versions: corporate and ultimate. The corporate version now amounts to 50% of total revenue, and it includes a mobile module, which supports all kinds of operating systems. An application has also been developed for each mobile OS to improve user experience. “There is no other way\u201d Schuster concluded. The mobile browser experience is not a pleasant experience”.<\/li>\n<\/ol>\n

    For more information on Sugar CRM, please visit their Website<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    This is the third Sugar CRM executive to be interviewed by visionary marketing.com. My first interview took place two years ago with Larry Augustin, CEO and founder of the CRM company, who is also one of the people who coined the phrase: \u201copen source\u201d. After a brief Skype encounter with the company\u2019s marketing executive Jan …<\/p>\n","protected":false},"author":2,"featured_media":57988,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4078],"tags":[],"class_list":["post-57987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crm-cx"],"yoast_head":"\nSugar CRM: the rise of a new customer relations champion<\/title>\n<meta name=\"description\" content=\"This is the third Sugar CRM executive to be interviewed by visionary marketing.com. 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