Maybe it is the record setting heat in Seattle today, but my mind is wandering over various experiences of my career. “Know your customer” is the mantra.

When you know the customer, good things happen.
– Example, Client A increased user adoption to 70% of total call volume. ROI increase 25% in one quarter.

When you know your customer, you can spot trouble a mile away.
– Example, Client B re-organized and has a new executive sponsor. He has called the ROI model into question.

When you know your customer, the relationship goes beyond business.
– Example, Client C asks for advice on improving the ROI model and photography equipment for his vacation.

The big news today was IBM’s purchase of SPSS. The implications are big in the predictive analytics space and for business intelligence in general.

But there is another reason for this post. Back in 1994, I had interviewed at SPSS. My father suggested I send Jack Noonan a resume directly. It worked. I was in the door and interviewing for an inside sales position. This was 1994. There was a recession. Being a new college graduate, interviews were tough to come by. I was pumped and over anxious. I even remember the receptionist telling me to relax before when I arrived. The face to face went great, and I was asked for a secondary phone screen to test my phone skills. I crushed the interview. I thought. When asked if I had any questions I said simply with overconfidence, “Well, how did I do?”

“You said the word ‘like’ 37 times and the ‘ya knows’ are not what we are looking for.” I was told. I was crushed. Stunned. Deflated. Important lesson. I never forgot it.

Congratulations to Jack Noonan and the SPSS team. Thanks for that lesson many moons ago.

Coverage @ TechCrunch: Monster Merger: IBM Buys SPSS For Approx. $1.2 Billion In Cash Deal

A lot of recent conversations on CRM have revolved around using cloud based platforms for xRM and other CRM extensions. It is a smart way to go. Check Architecting a Commercial Application on Force.com for a solid read on the topic.

So I know that one of my two readers uses Siebel for CRM. I had a very interesting and refreshing conversation today with Meetul Shah, CEO of Knouen (pronounced know-n’). You shold check Knouen OfficeSync for Siebel, an interesting sales productivity application for Siebel shops. If this is you (ahem), get to know Knouen.

Link: Knouen Technologies

Came across Bantam Live: The Ultimate Social, Real-Time CRM @ TechCrunch this morning and have been thinking on it all day. My take is that it offers watered down features of Gist with the workflow features of most CRM tools.

Is Social CRM important to the enterprise? Depends. If the customers are there, it is. Most enterprise customers are not there and likely will not be there ever. When I compare 90 second video of Bantam to a tool like Gist, it falls short. Gist offers a comprehensive, implicit way to track and monitor contacts and companies. This is important for Sales. All sales. Bantam falls into the enforcing rules and “sales accounting” dark side of CRM. User adoption does not occur in those scenarios. Be social all you want, but if Sales can avoid using you to fill the pipeline, sales will.

via TechCrunch: Why Chrome OS Now? Because Microsoft Office In The Cloud Comes Monday.

I have played around with the limited functionality of Office Live. It is good, not great, and about what I would expect from a beta. I had some formatting issues with some documents. Nothing major. Hopefully these quirks have been ironed out.

Supposedly, Microsoft’s Worldwide Partner Conference in New Orleans will announce full Office in the Cloud on Monday. The enterprise/desktop application cloud space is getting interesting. Microsoft’s huge install base will be a tremendous advantage. Redmond needs to leverage that to the full. Yes, this development does make the Google OS interesting. If Microsoft leverages their huge install base well (i.e. Not pull another Vista), Google OS will likely not be much of a factor. Microsoft will have to spend some PR cycles on Google OS though. The word Monday puts the Mamas and Papas hit “Monday Monday” in to my head.

Monday Monday, so good to me,
Monday Monday, Office in the cloud was all I hoped it would be
Oh Monday morning, Monday morning couldn’t guarantee
That Monday evening you would have to still email that PowerPoint to me.

Finally getting back to Cloudforce Seattle and the tons of info learned last week. The message was clearly that Salesforce.com is not just applications. Cloudforce Seattle was all about the platform moving to the cloud. I have a notion that there will be several “clouds” in the future. Clearly, Salesforce.com aims to be the enterprise cloud.

Taking an educated guess, but if I was employed by Salesforce.com I would see the cloud(s) through the following lens:

• Amazon AWS: Raw horsepower for the cloud. BTW, a partner.
• Google Apps: Powering the desktop cloud. BTW, a partner.
• Windows Azure: Microsoft Redux. Not serious for the enterprise. Find every hole and angle to exploit.
• Facebook: Pure social play. Not a competitor until they are a revenue threat.
• IBM & everyone else: Legacy vertical stacks. Too many holes to exploit. Focus on Salesforce.com advantage for each opportunity.

The Cloud Model will adhere to 3 themes: Multi-tenant, pay-as-you-go and elastic. The cloud is multi-tenant. Period. That is the only way to scale and offer the elasticity that the model requires. Without multi-tenant, it is merely remote hosting of previous application server provider (ASP) models. Pay-as-you-go is an interesting concept. Gone are the days of large outlays of capital and then turn-and-burn for the ROI. The Cloud allows for modest investment upfront. You can try a service easily. The main objection has been and will be “lock-in”. Prospects do not like the notion that you will host and somehow own their data. The industry media has not helped this notion. The elasticity is the value in the cloud for both parties. The relative cost of adding more capacity to the customer is cheap and the price the customer pays for added capacity is as well. Make not mistake though, the old days of huge margin for enterprise software providers is long gone. Smaller Cloud providers will find themselves up against increased barriers to entry.

The business value proposition will be around 3 themes as well: No capital expense, modest operating expense and scales with your business. No capital expense has been, is and will be a huge selling point. Companies finance departments may not understand this concept. Capital budgets are different from operating budgets. How much operating budget is based on usage and a lot of customers will have difficulty with this pay-as-you-go concept. They want to plan usage and that in the past has been done on a capital outlay. Cloud customers will need to get better at capacity planning their cloud usage. Salesforce.com and other cloud providers will need to spend the time to educate that usage is the new pricing.

This does next to zero for the sales cycle though. It is still as long and laborious. I speak from experience.

Immediately post-Cloudforce Seattle, I had identified 5 highlights:

• Visual Force, Model–view–controller (MVC) framework for custom user interfaces
• Mobile Lite, Free (for most) Salesforce.com mobile application
• Force.com Sites and Free Edition
• Integrated Content Library
• Genius, Think iTunes Genius for Salesforce collaboration

Visual Force provides an MVC framework for custom user interfaces as a service. MVC (Model, view, controller) is a standard framework for development. Since most user interface development is done through this type of framework, it is an advantage. Less re-tooling for development staff, less hurdles to clear from IT. The MVC framework carries over to Force.com Sites and will allow for a rich visual experience. Smart move.

Mobile Lite and the Mobile product has a mantra: “Write once, run anywhere” to iPhone, Blackberry and Windows Mobile. I have not been able to look into this further, but I know first-hand the difficulties of going cross-platform in the mobile space. “It ain’t easy.” Mobile Lite is a free for most versions of Salesforce.com and provides a lot of bang for Sales. It can take call logs from the phone and update Salesforce. What Sales would not want to have to make sure that his or her activity was logged? The mobile development angle on Force.com is intriguing and I will dive into that deeper.

Force.com Site and Free Edition were the stars of the event. If there was one point they wanted you to leave with it was Force.com Sites. From the impressive Starbucks/Appirio demo to the equally impressive GameCraze demo site by EDL Consulting, Salesforce.com wants to provide the world with the capability of customer facing systems on the same platform. Free Edition is a call to developers to an application vendors to test the waters of the enterprise cloud. The barrier to entry cannot get much lower than free. I would expect to see some interesting startups come from this.

The Integrated Content Library was just plain cool. It allows tagging, ratings, comments and search capabilities of market-facing content. Sales no longer needs to search for the best deck through hundreds of e-mail threads. A user can then assemble a custom deck for the opportunity. The real coolness is in the tracking of the sent content to the prospect. Sales can generate a custom e-mail through Salesforce.com to include a link to the newly created custom content. Tracking based in the e-mail and link will tell Sales, if the email and link have been opened. For Sales, this is pure gold.

Additionally there is a Genius feature that can best be described as iTunes Genius for Salesforce.com. It allows Sales to find experts within the company who have closed similar deals through matching criteria. Deal size, product or owner you name it. To work well, Sales must be disciplined which is difficult to at best. It will be interesting to see what customers Salesforce.com offers as “Super Geniuses”.

There has been a lot of press about this event being in Microsoft and Amazon’s backyard. This tour did not start and will not end in Seattle. Seattle was chosen for effect, no doubt. Salesforce.com means to be the enterprise cloud. Period. If I am right, hire me. If I am wrong, then I will be down to one reader — which will still not be my wife.

Happy Monday.

Attended Cloudforce Seattle today. Tons of great information and still processing it all. Usual Microsoft jabs by Marc Benioff, but nothing you likely have not muttered yourself. Lots of love for Starbucks and Amazon AWS from the Salesforce CEO.

Some highlights:

• Visual Force, Model–view–controller (MVC) framework for custom user interfaces
• Mobile Lite, Free (for most) Salesforce.com mobile application
• Force.com Sites and Free Edition
• Integrated Content Library
• Genius, Think iTunes Genius for Salesforce collaboration

I will dive into these and other topics when I catch my breath.

Interesting move in the cloud application space yesterday with Google’s announcement of Google Apps Sync for Microsoft Outlook. An often touted problem of the cloud is “lock in”. The enterprise is looking to move beyond proprietary solutions and blend the best for their own competitive advantage. This announcement is the first step to solve that problem. It will be interesting to see how Microsoft responds.

Check the Official Google Enterprise Blog for more details: Use Microsoft Outlook with Google Apps for email, contacts, and calendar.

100th post. That did not take too long.

Good read @ E-Commerce Times by Ed Sullivan Monetizing the Cloud 101: The Proof Is in the Profit. The article rightly points out that the advantage in the cloud is opening up your offering. Third-party developers can then create market-specific products. Apple is specifically mentioned; however, Salesforce.com and even Twitter have thriving developer environments. Force.com has become a required marketplace for a third-party CRM developers. Twitter API has spawned hundreds of applications based on Twitter, although time will tell how Twitter will profit.