Why Zoho Has a Manic Strategy for Selling Software

02.04.2009

At the Web 2.0 Expo, Vegesna showed off Zoho's latest app, an instant messaging client. It allows users not only to connect with other people using Zoho, but they can also chat with contacts on their consumer AOL, Google and Yahoo accounts. Coupled with Zoho's existing e-mail client, it puts the company more firmly into the market for messaging software, which also claims the likes of Microsoft (with Exchange and its Outlook client), IBM (with Lotus Notes) and Google, which .

Zoho makes the case to prospective customers that the emergence and proliferation of online software has created some problems concerning information management. If, for instance, you buy online customer service software from one vendor, and you buy online e-mail from another, those two applications (and the information contained within them) often don't talk with each other very well.

While Zoho's laundry list of applications might not be "the best" within each individual software category, they communicate well with one another. For instance, Zoho's CRM app can be used by sales people to track the activities of a customer. When you open the app, it will not only give you vital sales data, but it will show you all the e-mails, chats, documents and spreadsheets that have been created in regards to that individual customer in one unified view. This prevents employees from having to toggle between multiple apps to retrieve information, and ideally saves them time.

"We want all of our apps to work together contextually," Vegesna says. "This helps people do their work faster."

Zoho's strategy in the software market runs counter to many of its contemporaries. For example, Enterprise 2.0 companies - a niche of the software market where vendors mimic technologies popular in the consumer space like Twitter and Facebook and make them available for businesses to use internally - have generally thrived by focusing on doing one thing well (like, for instance, building a wiki).