Cost cutting measure are a very common theme up here for Canadian businesses in the wake of a declining Canadian dollar and plummeting oil prices.  Businesses are doing whatever they can to weather the latest economic storm that is impacting businesses across Canada but in particular the prairie provinces of Alberta and Saskatchewan.  The one area that customers continue to come to us over is the cost of their own software expenses, specifically licensing.
I bet if you’re a Canadian company, you’re more than likely using some sort of software based out of the USA to help with operate your business.  It could be email systems, file storage, billing software or even your CRM (customer relationship management) tool.  I would also bet you’re feeling the pinch over the cost of software licensing.
The chart below shows the average cost of a software license in US and Canadian dollars to show you the change over the last 2 years.  This is a comparison of SugarCRM Enterprise and Salesforce Enterprise Editions both with a USD List Price of $780 USD and $1500 USD annually respectively.
Salesforce & SugarCRM Cost Increases

As you can see from the chart there is an increasing cost as the beginning of 2015 started off and it just really didn’t stop there until late 2015 when Salesforce eclipsed the $2000 CAD per user license mark.  SugarCRM eclipsed the $1000 CAD mark in the summer of 2015.

This article isn’t about selling you on SugarCRM but…

My goal with this article is to bring to light the cost difference between SugarCRM and Salesforce.  In fact, the conversation is that much more important today than it was even 2 years ago as the escalating costs of CRM software continues not because of price increases, but due to the fact that our Canadian dollar isn’t performing we are all looking for ways to save money.
The question you need to ask yourself in your business is are you actually using Salesforce to its fullest extent?
If you’ve never done any customizations and are simply using Salesforce as a contact manager then there might be an argument to take a look at another CRM product.  If you’re happy with the solutions and features that Salesforce offers you then you’ll be happy to hear that SugarCRM is a very comparable product in terms of feature set and offerings.  It is also used by some of the biggest corporations in the world including IBM and Samsung (one of our customers at Eligeo).  The best part too is that it isn’t just for the big boys as many small businesses take advantage of SugarCRM to run their business.
If you haven’t customized much of SugarCRM.  Maybe you’re looking for a CRM that can track data and customer information easily which Salesforce does just fine but the costs are high.  Maybe you just need to experience a different CRM to understand the benefits better.
Salesforce isn’t for everyone.  SugarCRM isn’t for everyone.  But I can say this in all of the years of consulting, including both Salesforce and SugarCRM, many customers choose Salesforce because of pressured sales tactics.  Many choose it because they simply love Salesforce and that’s fine too but I’ve seen many come to us asking for the switch for many of the reasons described in here.

How do you save 50% off licensing?

Let’s put it this way.  Let’s say you’re a 20-person company with 20 Salesforce Enterprise licenses costing you just over $30,000 USD a year ($42,189 CAD as of January 16th, 2016).  Here is what your next 3 years of SugarCRM will look like:

SugarCRM and Salesforce Price Comparison

This pricing table is in USD as it’s easier to do a comparison but what we did for simplicity sake is we took the total license costs of each product for each year in the table above.  In Year 1 (2016) we tacked on about $10,000 USD in consulting fees for training and any customizations.  Your cost with us could be as little as nothing (if you just want to do the migration yourself) or on the high end if there are a number of customizations and training requirements that you need.
By Year 2 (2017) you will notice your costs will drop by 52%.  52%.  Fifty two percent.  That is huge.
So let’s recap:
  1. In Year 1, even with the migration and consulting costs on the high end you will save about $4,400 USD.
  2. In Year 2 and beyond, your license costs have now dropped $14,400 USD per year.
  3. Over three years by switching to SugarCRM Enterprise you will save a grand total of $33,200 USD.  That’s like getting a free year of Salesforce.

 

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