The CRM Software Guide

August 5, 2007

SUN 5 AUG 2007

3 Reasons a Weak Dollar is Good for Software-as-a-Service By Tom Greenberg | click to add a comment Tag: weak dollar, saas, crm, software-as-a-service, sal

3 Reasons a Weak Dollar is Good for Software-as-a-Service

In the same period the software-as-a-services industry has taken off, the American dollar has lost more than 40% of it's value against world currencies such as the Euro.

When business software such as CRM (Customer Relationship Management) was first offered as a service by numerous companies like Salesforce.com, Netsuite, Salesboom.com, RightNow, etc, the American dollar equaled to 82 Euro cents, Now it is something like 1.32!

Here is the three reasons why I think a weak Dollar is good for the SaaS industry:

1. While SaaS products already offer more than 50% savings over installed-base systems, the price of SaaS products is now 40% cheaper for International customers thanks to the weak dollar. Since most online marketing companies are USA-based, marketing to international customers will not cost anymore.

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2. A Weak Dollar will deter SaaS vendors from hiring offshore customer service call centers and developers, which is bound to increase customer satisfaction and/or keep jobs at home.

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3. A Weak Dollar will deter North American businesses from purchasing International SaaS solutions; since they became 40% more expensive since 2003! This means more business for the software-as-a-service industry in North America.

9:50 PM | Permalink | click to add a comment | Tag: weak dollar, saas, crm, software-as-a-service, sal