Salesforce offers partners services for revenue

Hosted CRM pioneer monetises AppExchange

Salesforce.com has delivered the latest part of its effort to create an ecosystem for partner companies selling software as a hosted service.

The firm’s AppStore initiative offers sales, marketing, transaction and distribution services to software developers that post programs to the AppExchange directory of complementary applications. In exchange, vendors pay up to a 25 percent cut of revenue accrued.

A little over a year since its launch, AppExchange hosts over 400 applications and has seen more than 20,000 installations by over 7,000 customers. Salesforce pitches the scheme as a way to try, buy and grade software in a marketplace analogous to iTunes or eBay.

“AppExchange was a great first step and this is the logical next step,” said Rebecca Wettemann of analyst firm Nucleus Research. “It gives vendors a way to invest in product development without worrying about [other areas]. They’ve cured that issue in a nice way.”

Liz Herbert of Forrester Research agreed but suggested that AppExchange’s successes are focused in areas near to Salesforce’s customer relationship management home turf.

“The companies that are closest to filling the gaps in Salesforce’s portfolio are doing best,” she added. “Business-to-consumer and enterprise resource planning firms are having less traction.”

Separately, Salesforce named 10 partners that have signed up for its incubation programme that sees it offer facilities and other assistance to small companies. The firm currently offers suites in California but plans to add international offices next year.