Salesforce.com committed to SEA expansion: Page 2 of 2

Pushing cloud agenda
 
Salesforce.com committed to SEA expansion: Page 2 of 2According to Daniel-Zoe Jimenez (pic), senior programme manager for big data and analytics at IDC Asia/Pacific, it’s not uncommon for companies like Salesforce.com to not have a direct physical presence in countries like Malaysia.
 
Jimenez said generally, opportunities are partner-led, including both global and local partners which specialise in certain solutions or industries.

He does not think that this is necessarily a disadvantage for Salesforce.com, noting that it has over the years managed to achieve good results across Asia Pacific.
 
“So it’s clear that its value proposition has managed to attract a significant number of customers in the region,” he told DNA via email.
 
Jimenez said that according to IDC’s research, Salesforce.com is strongly positioned in Asia Pacific, and has become the third largest player by revenue share, and that it has 10% of the overall CRM (customer relationship management) market.
 
IDC defines CRM as applications that automate customer-facing business processes within an organisation, irrespective of specific industry.
 
However, this figure does not include contact centre vendors such as Avaya, Genesys, and Verint Systems, to name a few.
 
Jimenez said that in the South-East Asian region, Salesforce.com was also the third largest CRM vendor in 2013, with about 15% market share, behind SAP SE’s (38%) and Oracle Corp’s (22%).
 
Asked what some of the challenges that Salesforce.com would be facing, he cited cloud adoption as one of the main ones, as Asia Pacific still lags behind the West in this area.
 
He noted that in general, cloud adoption is growing in this region, but added that many companies in Asia Pacific are still taking cautious steps.
 
In fact, to address this demand and cater for specific country regulations, a number of vendors are launching more data centres in the region, he said.
 
The IDC analyst also believes that markets like Malaysia, Indonesia, China and India are less mature in cloud adoption, and that there is a strong preference for dedicated IT infrastructure, whether on-premise or hosted.
 
“Unlike mobile devices, emerging markets’ share of cloud spending lags that in developed markets, but the gap will continue to narrow.
 
“This, of course, can be a challenge when competing against other vendors that also offer on-premise solutions, but, that said, CRM applications are one of the most mature markets in cloud terms,” he added.
 
Jimenez said that so far, Salesforce.com has been more focused on the mid-to-large enterprise segment.
 
In order to scale its business in countries in Asia and South-East Asia in particular, Jimenez believes the company will need to increase its focus on educating organisations, and particularly mid-sized companies – due to the size of this market – of the benefits that can be achieved by implementing cloud-based solutions.

Tomorrow: What is Salesforce.com's Wave Analytics Tool and what it means to the market
 
Edwin Yapp reports from Dreamforce 14 San Francisco, at the kind invitation of Salesforce.com. All editorials are independent.
 
Previous Dreamforce stories:
 
Salesforce.com: Innovating from inside the cloud
 
Salesforce.com jumps on the cloud analytics bandwagon
 
 
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