Driven by end-user demand, mid-market CRM applications, such as those offered by Maximizer Software Inc., NetSuite Inc., Sage Software Inc., Salesforce.com and SAP America, are gaining in sophistication. (Click here to read about NetSuite's new release, and here to learn about SAP's on-demand initiaitive.)

While virtually all on-demand CRM vendors provide features to support sales force automation, marketing campaign management and/or customer service, providing front-to-back office integration has become a clear differentiator in vendor selection.

On-demand CRM solutions have been around since the mid-nineties. In fact, my third CRM implementation, (for a 125-person start-up) was an on-demand application which went out of business in 2002. Since then, acceptance of Software as a Service (SaaS) CRM has reached a point where the delivery model is no longer an issue. Competition for market-share in the mid-market CRM space has sizzled of late, with each vendor articulating their unique business value.

In general, on-demand / SaaS delivery models will deliver quick ROI in terms of:

• Ease of use
  

• Rapid deployment

• Simplified configuration & customization tools
  

• Low cost of entry & ownership
  

However, these models are at risk of becoming another commodity. End-users quickly realize that business needs of growing organizations cannot be met without significant custom integration services that enable: