Is Zoho a threat to Salesforce?

No

Not yet

This post rightly points out that SF customers on the larger end of the size scale demand a level of service, performance and trust that Salesforce has spent the past 9 years building. It also says that it’s going to take a lot more than a free/$4 month service to move them.

What the post doesn’t recognise is that Zoho people is a ground shift in office SaaS productivity apps. By stealth Zoho is slowly but surely building an integrated suite of solutions that could become a significant threat to both Microsoft (office productivity), Salesforce (CRM) and other SaaS vendors (CRM, Wiki).

Zoho is a fascinating business to watch. While some have said that People is a scatter gun approach towards application development, I believe it an extremely calculated move. Next move I’m picking is a filling out of the space between the current small business offerings and People, the first larger business offering.

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