Webware

Salesforce.com CEO Marc Benioff

(Credit: Stephen Shankland/CNET News)

Salesforce.com showed Wednesday that cloud computing can produce serious money--but also that it's not immune from the current unpleasant economic climate.

For its fiscal 2009, which ended January 31, the San Francisco-based company reported revenue of $1.08 billion, a 44 percent increase. But for fiscal 2010, it lowered its forecast to a range of $1.3 billion to $1.33 billion.

In November, the company had forecast $1.35 billion to $1.36 billion, and analysts surveyed by Thomson Reuters expect on average $1.325 billion for the year.

"We've slightly lowered the guidance range. There's increasing uncertainty out there," Chief Financial Officer Graham Smith said on the company's conference call.

For the company's fourth quarter, Salesforce.com reported net income of $13.8 million, or 11 cents per share, on revenue of $290 million. That compared with $7.4 million net income and $217 million revenue for the year-earlier quarter, and it was better than the 7 cents per share on $285 million in revenue analysts expected.

In after-hours trading, Salesforce.com's stock rose $1.50, or 5 percent, to $29.60.

Salesforce.com's core service lets customers track and analyze customers activity; its online approach also features alliances with some other high-profile Internet sites, including Amazon Web Services, Google Apps, and Facebook.

Salesforce.com's mascot advocates cloud computing over in-house software.

(Credit: Stephen Shankland/CNET News)

The company competes chiefly with Oracle's Siebel software for customer relationship management, which typically is run on massive computers a company runs on its own.

Salesforce.com has been branching out, though, offering its Force.com system to let companies build their own custom Web-based applications or third-party programmers offer their own extensions to those customers. And in December, the company launched Force.com Sites to house customer's Web sites.

In the fourth quarter, Salesforce.com's technology overall completed more than 12 billion transactions, the company said. The total of more than 1,500 Force.com Sites received more than 15 million page views in the quarter, and there are 166 applications available in the Force.com AppExchange.

"The numbers for the fourth quarter clearly demonstrate increasing adoption of the force.com platform," Chief Executive Marc Benioff said in the conference call.

SugarCRM has landed a $20 million venture investment round, designed to boost international expansion by the maker of open-source customer relationship management software, the company said Thursday.

Taking the lead on the funding was New Enterprise Associates, with existing investors Draper Fisher Jurvetson and Walden International joining in. That brings SugarCRM's total funding to $46 million.

The company plans to use the funds for not only research and development, but also increasing its global footprint--particularly in Europe and Asia.

SugarCRM, founded in 2004, released its Sugar 5.0 software in December. To date, the company has racked up over 4 million downloads of its commercial open-source CRM goodies and counts more than 60,000 community members.

With its infusion of funds, SugarCRM will have more leeway as it heads down the path toward an IPO within the next two years. But with the recent industry consolidation--case in point being Sun Microsystems' planned $1 billion merger with MySQL--SugarCRM may find that option just as tasty.

37signals launched Highrise this morning. It's a customer relationship management (CRM) tool aimed at small groups and medium-size businesses. Highrise is meant to fill the gap between Outlook's contact manager and complicated CRM apps that require an IT department to keep running smoothly. It's also priced below SalesForce.com's Team Edition, with more of an emphasis on contact communication and history, rather than sales and forecasting. It's a Webware solution for people who don't want to install CRM software or manage a huge database, and who need a tool that can be accessed on the go.

(Credit: CNET Networks)

Highrise launches with six different plans, five of which are paid services with the benefit of shared group storage, increased contact and collaboration limits, and relation-based information pages called "cases." Each tier of service can be upgraded or downgraded at any time, and there's no contract.

In Highrise, each case file can contain information about multiple companies; contacts; and any important information like notes, shared files, and e-mails. By grouping this information in one place, you can create a detailed history or context for a group or contact. Highrise has some built-in tools for organization as well. You can schedule phone calls, reminders, tasks, or basic to-do lists, and assign or include other Highrise collaborators. It's not nearly as deep a system as you get with 37signals' group collaboration tool Basecamp, but if you see something you want a colleague to follow up on, you can do it without firing up your e-mail client.

For integration with your e-mail, Highrise recommends that you set up your e-mail app to automatically forward everything to a special Highrise address. Highrise will parse your messages, and copy over any attachments along with the original text to the contact's profile page on Highrise. If you haven't already created the contact in Highrise, the app will create it for you.

Yesterday 37signals founder Jason Fried posted about the team's upcoming contact management app called Highrise. The goal of the app is to help you manage contact information in a better way than relying on Post-its or your current software-based customer relationship management (CRM) tool. Think of it like a Rolodex but with collaboration and more space to write things down. Many people can have access to the same records at once, and from the announcement, 37signals thinks they can do better than your current CRM.

In many ways Highrise is a solution for a problem with Web communication technology: we have these great contact management tools with services like Gmail, Yahoo Mail, and Plaxo to bring them all together, but no way to share them, and add notes or related items. There are a few Web-based CRMs out there, such asFunclient and absoluteBUSY, but none that have the potential to tie into a suite of highly successful Web apps (see Basecamp and Writeboard). I can also see a big use for this for keeping track of friends or colleagues as they move all over the place, more so than relying on LinkedIn or social networks like MySpace and Facebook.

Fried made no mention of pricing or a release date in the Highrise announcement, but noted that the 37signals team is "very happy with it." We'll post something more in-depth as soon as we get our mitts on it.