Leapblogging: The Salesforce.com Ecosystem Debate, Round II

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Enterprise Rule of Thumb

Josh, the typical rule of thumb to measure the revenues generated in the SAP ecosystem is 10x. Take SAP's license revenue for any given quarter and multiply them by 10 to get a pretty good estimate of how much money the SI's, HW, OS, DB and ISV's generated. Its not terribly scientific (and its fairness can be debated), but has held up pretty well over the years as an accurate reflection of revenues generated by partners. For better or worse, that's the type of yardstick other enterprise app vendors should be measured on. SFDC can claim that they should have a lower bar since they don't have HW,DB,OS or implementation costs, etc, but they should be compelled to report a general multiplier of their revenues as a yardstick for comparison on the health (and wealth) of their ecosystem. Sunshine is the best disinfectant and if SFDC can't or won't report metrics on the health of its ecosystem and its AppEx partners can't or won't report on revenues they are getting out of the deal, your assumptions MUST be TRUE. Its all a lot of marketing hype. I join your challenge to SFDC to prove you wrong and SHOW ME THE MONEY! Ego-system is a wonderful term. Ask any SAP partner what they are getting out of the partnership/ecosystem and they'll be happy to throw out numbers at you.

Posted by: Pantologist   Posted on: 11/30/07 You are currently: a Guest | Members login | Terms of Use

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