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Salesforce.com says beverage behemoth saw big cloud returns
Once again demonstrating its uncanny knack for the well-tuned, exceptionally optimistic press push, Salesforce.com is showing off the return on investment (ROI) of its Sales Cloud 2 service via a new customer: the Dr Pepper Snapple Group.
Sales Cloud 2 is the company's soup-to-nuts enterprise CRM line that offers all of Salesforce.com services in a bag, rather than picking out one or two at a time. It's not cheap.
The company trumpeted a 56% annual ROI with a calculated pay back of 2.3 years on its adoption by the Dr Pepper Snapple Group.
That means for every dollar the Dr Pepper Snapple Group (say that five times fast) spent with Salesforce.com , it's going to make back $1.56 this year and be able to pay off the investment in about 27 months. That's pretty rosy, we guess, and definitely a great argument for Software as a Service…until you realize that this kind of figure is about as stout as a bowl of vanilla pudding.
First, the investment costs likely include not only the sticker price for Sales Cloud but also far more nebulous amounts based around accounting hijinks. These would include counting the costs of training workers, dumping old business processes, creating new ones and probably watering the office plants to keep up morale during the switch.
Also, a direct comparison of the licensing and operating costs from whatever Dr Pepper Snapple Group was using and Sales Cloud is noticeably absent.
And finally, if Dr Pepper Snapple Group hadn't madethe switch, it might not being getting "56% annual ROI," but it also wouldn't have to pay off a (presumably) giant capital investment for two and a half years.
On the other hand, Dr Pepper Snapple Group says that since it rumbled all of its CRM into Sales Cloud 2, it's been able to hug more puppies and pick more flowers, and that it's totally into the cloud now.