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Gartner has estimated that with traditional client-server applications, the initial license cost only represents 9% of the total cost of ownership Please notice that software is one fraction of the total costs According to Gartner Group, “Many enterprises are becoming involved with costly CRM initiatives without a full understanding of the difficulties and costs involved with "getting it right." For example, the three-year total cost of ownership to automate one employee can range from $28,000 to $40,000 – Gartner Report: April, 2001. Projects often stretch into the millions of dollars, even for moderately sized sales organizations
Another useful comparison is to look at the total value impact over time for traditional CRM software and online CRM. For traditional CRM, the initial and ongoing costs are much higher, it takes much longer to breakeven, and as a result, the total value impact to the customer, highlighted here in yellow, is minimal. Can interject here with specific examples of implementation failures of competition if necessary.
In contrast, the total value impact for SFDC’s online CRM is much higher because of the lower initial and ongoing costs and shorter time to breakeven. And for a VP of sales who’s often measured against short term results, the ability to go live with CRM in just 3 months and achieve breakeven in 6 months is critical.