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Siebel On Premise vs Siebel On Demand vs SalesForce.com

Next is CRM !!! A lot of discussion is taking place on CRM comparison.    Siebel On Premise is getting cutthroat competition from Siebel On Demand and Salesforce.com . Oracle, on the other hand,  is going to face some heat from SalesForce.com application as it has been entice various enterprises.

Let’s discuss the major features and factors involved in selection of the CRM between Siebel On Premise, Siebel On Demand and SalesForce.com.

Once a company decides to purchase CRM software, it actually looks for automate business processes , cut-off the overheads ,make big saving which result revenue earning and last but not the least making customer happy. Few years back CRM purchasing process was a very confusing process for an organization and companies were buying CRM solutions focus on features and prices instead of focusing on actual business gains to be expected from the CRM software purchased. Now we have few good well established CRM packages in market with well defined feature and implementation history to make choices. We can look for following features while comparing the CRM packages.

Feature Rich CRM: CRM says it has all features which you want but make sure are you getting all feature in one application or what all  need to purchase other application or modules. Siebel has lots of features but it requires licenses for o all those feature to integrate with your application as per your need.

 

CRM customization: How comfortable and adaptable is this CRM while customizing your requirement, any limitations on customization and time frame to make the customization up and running.

Simple CRM Integration: One of major criteria is how easy we can integrate with existing software platforms. Easy integration is essential to achieve the best CRM Software solution possible. Siebel UAN has provided an edge to Oracle on this front. Other points to be consider is industry standard integration capability and support of future integration technologies like SOA etc. Current CRM might have easy integration capability but may not be able to cope up with the future technologies. Also need to look for the pre-build integration adapters available to minimize the customization and maintenance efforts

Cost: Money always matters!!! Organizations are looking forward for big saving in implementation as well maintenance and operational front of the CRM application. Implementation cost (customization and Integration), System upgrade cost, User Licenses fees and Maintenance contract fees. I have come across various cost comparison activities between these CRM. I am sharing the example data for better understanding.

 

TCO :  Total cost of ownership is one of the factor while deciding CRM, many time it happens that initial cost of the CRM might be low but subsequent cost might be high e.g. yearly support cost, consultancy fee might be higher, availability of the resources and skills in the market etc

crm comparision

Y axis : In Million $ ,  X axis: CRM Products

Siebel On Premises implementation is very costly in comparison to rest two. (Siebel on demand is less expensive as compared to on premises only for short period of time like 3 years but beyond 3 years it turns out more expensive due to licensing cost) Let’s see the Primary cost contributors for 2 oracle products for its high implementation cost. >>Siebel On-premise – Separate environments, customization & integration, PC upgrades >>Siebel On-demand – Customization & configuration, solution failure Salesforce.com is cost effective and also easy to implement and use but salesforce.com has seen some hiccups and apprehensions in customer mind due to hidden cost, not very effective customer support and low storage capabilities while Oracle with big credibility and customer support is still a clear winner. We can also go with hybrid model, for quick implementation and leveraging the CRM capabilities customer can start with Siebel OnDemand and once processes are stabilized customer can move to On Premises solutions for the long term strategy and greater flexibility in the functionalities and customizations as per the business requirements.

The comparison is based upon my own understanding of these products, Please correct if I have missed something.

Special thanks to Nitish Purohit for his valuable inputs in this article.

Related Articles: Siebel UAN – Universal Application Network

16 comments on “Siebel On Premise vs Siebel On Demand vs SalesForce.com”

  1. octa8on Reply

    I was wondering if Siebel On-Premise is some new offering from Oracle (which I had missed) until I noticed its features! But could not fully understand why Siebel On Demand is more expensive than SFDC.

  2. Fawaz Hashmi Reply

    On premise implementations are never easy nor inexpensive in the short & long run – they have a high total cost of ownership. The Siebel On Premise is the rebadging of the original CRM product – in 2005 Siebel on demand was introduced around the same time it was acquired by Oracle.
    octa8on – not sure what numbers you are comparing but here is the pricing.

    Siebel on demand and its twin Oracle on demand are two good products that are feature rich and less expensive than Salesforce. About $80 -98 per user per month
    Salesforce is a great product but with licensing around $99 – 120 per user per month

    Oracle sales rep will share this comparison quite openly while Salesforce Sales rep will tell you that you are paying for a good product.

    The competition between the two is pulling the rest of the industry laggards to improve their products. Amen to that!

  3. Ashish Kumar Ashish Kumar Reply

    Yes Fawaz,

    Setting up various dev environment, Testing and pre prod environment , Prod environment , disaster recovery and customization and Integration are the major costing factor in case of siebel on premises.

    Though licenses fees for Siebel on Demand is less than SFDC but cost of customization and Integration in Siebel On Demand makes it costly in comparison to SFDC.

  4. Niels Haas Reply

    Oracle CRM On Demand is one full license for either small/medium/large/corporate and has a focus on social CRM. Salesforce is like Microsoft that has many different versions of the same product which is priced heavily.

    In my opinion Oracle CRM OnDemand will dominate the market if they focus on the smaller businesses.

  5. Naresh Patel Reply

    One of the others things in favour of CRM On Demand is the mobile apps for mobile phones. Oracle have invested in research and built an dedicated app for the mobile business user. Its simple to use, light weight and continues to be researched further to improve it.

    Use on the Blackberry and Iphone platforms, it doesnt just replicate the UI and data into the mobile browser, but it displays in a dedicated app that has real time connection to the production environment, with dedicated features to harness the features, but within the limitation of the mobile platform.

    A sure plus point for Oracle CRM On Demand user who want to be mobile,

  6. Siva Reply

    I’m not sure about Siebel. SFDC (Sales force.com) is doing well because of well known cloud Computing.

    SDFC is cost effective ,offer very good customer support.

  7. Gisele Reply

    One key buying factor for Ocod (Oracle CRM OnDemand) is clearly the reporting aspects.
    Ocod provides customer with integrated and advanced out-of-the-box reporting capabilities, based on Siebel Analytics technology.

    The learning curve is very positive for people already working with siebel anaytics; for beginners, some on-line training (on ilearning oracle site) make it very easy to build your own reports and dashboards

    for an On-Dezmand solution, this advantage makes ocod more mature and more valuable for managers and decision makers.

  8. Erwin Reply

    We’ve been using Siebel On Demand for several months, and our implementation team for that rollout just completed taking a fresh look at Salesforce and also Microsoft Dynamics.

    Strong vote for Salesforce over Siebel On Demand, even though we’re an Oracle EBS shop. More usable, more feature rich, easier marketing and reporting toolsets, better disconnected model, etc. Wishing I would have looked at it first – overemphasized the integration difficulty, I’m afraid.

    Take a close look before deciding, and get feedback from the sales and marketing people that will actually be using it (vs. just the IT people).

  9. Ashish Kumar Ashish Kumar Reply

    Thanks Erwin for your inputs. Can you please explian your pain areas working with Siebel On Demand.

  10. chun Reply

    That is not exactly true. Oracle has lower the license costs a lot. Once you put siebel in house, you put 22% of the license cost. But for SFCD and OCOD. You have to pay every year. SFCD and OCOD are platfrom. You will need to pay extra for any third parties.

  11. SL Reply

    Sorry guys, I was working for two years with salesforce and now work for one year with Siebel On Demand and I have to say the products are not really compareable. SFDC is lightyears ahead in simplicity and customization ability. If you have any wishes of customization in SOD you have to leave the On Demand side very soon. This means all you want to do with SOD involves external WebService development. For example: Try to make a Rollupfield (Parent/Child Sum) with SFDC and with SOD –> Two clicks with SFDC, 1000 lines of external java code with SOD. But the biggest advantege of SFDC over SOD is the Data abstraction layer…which makes it really flexible. Try to delete a field in SOD (This is simply not possible)

  12. AAdi Reply

    Hi 
    Can you please suggest me which CRM Solution should I Implement in my company.
    We are service based company with 500 + employee turnover of around 20cr INR.Our operation are limited in India and middle East 
    Your inputs will really matter for us Please help me 

  13. lovey garg Reply

    Hi.. I am a new joinee in a company where I have been trained in Siebel. Bt there r no projects in siebel fr the past 4 months. So can you give me an idea if there is a future in siebel. Or should I opt for getting trained in SFDC if I get this opportunity.
    Help me out. I am in big confusion.

  14. Ashish Kr. Bameta Ashish Kr. Bameta Reply

    All product vendor provides a basic Master Services Agreement. Salesforce.com does not provide SLAs or disaster recovery objectives to all its customers. It supports disaster recovery service-level objectives that include a 12-hour recovery time objective (RTO) and a four-hour recovery point objective (RPO). In addition, salesforce.com also has its own internal disaster recovery plan that it shares with customers on request.
    During its study Gartner has not yet seen salesforce.com legally commit to disaster recovery objectives and associated penalties with customers. Therefore, because the vendor states that it can provide legal commitments, customers should negotiate and expect to get legal commitments and remedies for ensuring that these disaster recovery service-level objectives are consistently met.

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