Caveat emptor

About a year ago, my company signed a two-year contract with Salesforce.com for 150 Enterprise user licenses. Despite what you’ll read in the rest of this blog, signing a long-term agreement is something I highly recommend other companies take advantage of. With longer term agreements, you can leverage steeper discount pricing. Our 2-year agreement gave us a nice 36% discount off the standard pricing, which certainly made the resident bean-counters happy.

Our 2-year contract is now due for the 2nd annual payment, and Salesforce sent us an invoice. I don’t normally review / approve vendor invoices, but I’m filling in temporarily for my boss. While reviewing the invoice, I noticed a transaction that didn’t seem right: a Customer Web Portal license had been added to the contract. 150 Enterprise licenses, 1 Customer Web Portal license … that’s not right. What is this? I racked my brain, trying to figure out what that was all about – then I remembered:

Earlier this year, my organization was looking into the Customer Web Portal feature. Our Salesforce.com Account Manager hooked us up with a 30-day trial, and we used that time to develop a Customer Web Portal prototype. Unfortunately, the development cycle brought us right up to the end of the trial. Midway through the following month, while trying to provide a demo for a visiting Customer, I discovered that our free Customer Web Portal trial had ended.

In a panic, I called my Salesforce.com Account Manager. I explained our situation, and asked if Salesforce could extend the Customer Web Portal trial. He indicated that he could not do that (Grrr!) – but if I were to purchase a Customer Web Portal license, Salesforce could enable and disable those accounts at any time. Great, sign me up, let me get to my Customer Demo.

There were some technical problems getting the Customer Web Portal active. It took several weeks for Salesforce Customer Support to determine why I wasn’t able to use the licensed Customer Web Portal account, and I lost the opportunity to demo the feature with my end-user. No worries, I continued to use the account for internal demos. Advocating the tool, I tried to build a stronger business case internally by demonstrating the web portal to our Account Teams, Sales, Field Engineers and Executive Management. In August, when it became clear that we would not have funding for the web portal project in 2008, I told Finance to cancel the web portal license.

Fast forward to today. The Customer Web Portal user license was apparently never canceled, and it’s still on the renewal invoice for next year. I opened a Case to get this transaction removed from the invoice. It took 10 days (TEN DAYS!!!) for Customer Service to respond with a canned “we can’t do that, you’re under contract” form letter. I escalated to my Account Manager, and he also indicated there was nothing he could do. Despite what I had been told previously about turning these portal licenses on and off "on-demand", the 1-user Customer Web Portal license agreement was coterminous with our 2-year contract.

Caveat emptor. Never shop on an empty stomach. Read the fine print. Never upgrade in a panic.

I only wanted to cancel a single user license agreement for a feature that we aren’t using, something I was told previously I could do “on demand”. It’s a piddly $300 expense, and while it’s not going to break my bank, it sure does annoy me.

I thought I had a better working relationship with Salesforce. I’m one of their reference accounts: over the past year, I’ve given freely of my personal time, doing private conference calls and impromptu GoToMeeting sessions with some of their prospects -– trying to help Salesforce win new business. I’m the community leader for the local Salesforce.com User Group. I blog and twitter on Salesforce all the time. More importantly, I intercept the NetSuite and Microsoft CRM sales dogs every month, keeping them away from the internal decision makers and coaches in my company.

Am I still a big fan of Salesforce.com? You bet I am! It remains the most flexible, powerful, and innovative SaaS tool on the market. But am I just a little jaded over this silly $300 invoice line item that we couldn't wipe from the slate? You betcha.