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CRM Total Cost of Ownership: Fees, Subscriptions and Hidden Costs
The way companies use and pay for customer relationship management (CRM) applications is changing.
Moving from a predominantly perpetual license-based system, where companies paid a large up-front sum
and then smaller annual maintenance fees, CRM software providers are now moving towards monthly or annual subscription fees to access CRM software on the Internet.
The various pricing schemes can create confusion among buyers as they try to assess the total cost of ownership (TCO) of different CRM services priced under various schemes.
The following analysis provides a comparative price analysis of four leading CRM solutions for midmarket organizations. Forrester Research defines midmarket organizations as any organization with revenues of less
than $1 billion and/or fewer than 1,000 employees. The CRM solutions included in this TCO analysis are:
• Microsoft Dynamics CRM 2011
• Sage SalesLogix