Salesforce.com flies free

Posted Apr 7th 2009 5:30PM by Tom Taulli
Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), salesforce.com inc (CRM)

Salesforce.com (NYSE: CRM) has built an empire by changing the business model of software; that is, by charging on-going subscriptions. For the most part, it tends to be more affordable than the traditional approach, which involves heavy upfront licensing.

Well, now Salesforce.com is changing things up again. This week, the company is launching a free mobile product – called Mobile Lite. As the name implies, this offering doesn't have the full-blown bells and whistles.

Essentially, Mobile Lite does things like: check on leads/customer requests, searching, tasks and so on. This is for the key platforms like Apple Inc's (Nasdaq: AAPL) iPhone, BlackBerry and Microsoft Corporation (Nasdaq: MSFT) products. Interestingly enough, Google Inc's (Nasdaq: GOOG) Android is not on the list (a sign that there probably isn't much adoption of it yet).

All in all, this is a smart play. Salesforce.com has 1.5 million subscribers. And, by allowing free mobility, this should increase engagement even more. Besides, mobile apps are a necessity in the Corporate world.

Oh, and it will probably be an enticement to get users to eventually upgrade to the premium version (about $50 per month), which should mean another nice bump in revenues.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the founder of BizEquity, a free online business valuation tool for small businesses. You can reach him on Twitter.

Tags: Mobile