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The volume is there for any entrepreneurial vendor to have a good shot at achieving decent market share. But it will require invention in business models and a willingness to trade something other than direct cash.
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Phil Wainewright speculates that Zoho may have developed a model that allows it to take advantage of the freemium approach such that it can outgrow Salesforce.com. In one sense that doesn’t surprise me. The SMB market at which Zoho is aimed is huge and in marked contrast to the upper mid-tier and above that, until recently has been Salesforce’s focus. Its pricing reflects its focus with the professional edition coming in at $65/month/user for basic SFA, call center and 10 custom tabs.
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