With the introduction of Salesforce.com’s AppExchange, the company is acting on its vision of taking killer applications available on the Internet and transforming them into a platform.

This month the company rolled out the red carpet for the launch of AppExchange in Asia, and introduced the region’s on-demand community to it. Touted as the “eBay for applications” and the world’s first on-demand platform and directory, AppExchange is made-up of a network of on-demand applications, services, components and development efforts that enable customers to run their entire business on-demand. The platform offers a try-before-you-buy approach to online software that plugs into the company’s salesforce automation and customer relationship management (CRM) software. It is essentially, also an online marketplace where software makers and customers can exchange as well as sell applications they develop, read reviews, try applications for free, and make a purchase without any hassle. The applications on AppExchange can be any type of business software and are all accessible to any Salesforce subscriber who has a Web browser and Internet access.

Not previously known as a very channel-friendly company, this has now changed according to Bobby Napiltonia, senior vice president, worldwide channels and alliances, Salesforce.com, who says that the AppExchange is now the very heart and center of the company’s partner strategy. He adds that it also helps that the model allows every partner to be global. Moreover, with such a fluid environment there is a lot more freedom for their partner community. Partners can decide when they want to go-to-market and Napiltonia sums its up by saying, “Basically, it’s time-to-value for customers and time-to-market for partners.”

Though still in the infancy stage, he says that the company is firm in its belief that its partner strategy has to be built around customer success and that the end result of every partnership is enhanced customer success. Salesforce has also been extremely busy over the last 8 months, already establishing 3 global SIs, with a fourth on the way. In addition, the company has been busy rolling-out e-learning partner programs and working hard to ensure that a scalable partner program is put in place.

Napiltonia adds that the company is very aware that the Asia Pacific market is very relationship-based, which is why an important quality which Salesforce expects from its partners is the ability and the expertise to achieve as well as maintain good customer relationships.

The company is definitely looking for a variety of partners in the region, including services partners, local partners (like SIs and developers) and solution vendors. Importantly, it is looking for partners “who are going to evolve over time and who are open and willing to be taken to new opportunities,” says Guy Cross, director alliances, Asia Pacific, Salesforce.com.

According to Napiltonia, most of the company’s existing partners in Asia love the idea of the AppExchange, and “want more of it”. Some really excited partners I met at the launch of the AppExchange in Singapore this month included Teng Chuan Hiang, managing consultant, InterAktiv, Chris Elsmore, director, Alliances, Asia Pacific, Japan and Greater China, Business Objects and Jason Masciarelli, CEO, Theikos.

Masciarelli of Theikos is a partner of Salesforce who is based in the U.S., has an office in India and is now looking at expanding in the Asia Pacific. He is one of the partners of Salesforce who is moving with them into “new opportunities” as Cross said earlier.

“Business Objects’ Crystal Reports XI for AppExchange will allow users to access data from Salesforce and combine it with data from other sources to build custom reports,” explains Elsmore. He says that Business Objects is very pleased with the technical integration of Crystal Reports XI on AppExchange and is looking forward to grow together with Salesforce. He hails the company as the “new pioneers of the Web”. Crystal Reports XI on AppExchange should be available in 3 months time.

InterAktiv Technology Pte Ltd is a consulting company that is based in Singapore and according to Cross, actively searched out Salesforce to work with them closely. Teng of InterAktiv says that it was a fantastic experience working with Salesforce because the company gives its partners lots of liberty and creative freedom to engage with customers. He adds that one of the key reasons they gel so well is because both companies believe firmly in the same philosophy that is built on customer success.

A very impressed customer of InterAktiv and AppExchange is Paul Beale, founder of Aripa Makmur Persada, a financial planning services company and Salesforce’s first customer from Indonesia. He says, “With the AppExchange platform, “for the first time I have found something that actually does everything that I want it to do.” He adds, “Most of the companies out there that offer CRM solutions focus on the top-end of the market and leave the smaller guys like us who need a lot of help, out.” Beale describes AppExchange as, “Quick, mobile, affordable, customizable, easy to use, no real need for an IT dept in order to use it and something which you don’t really need to understand in order to use as one simply requires a PC and an Internet connection. It has given my company the absolute competitive edge that is what every business should have.” He believes that because of AppExchange, his company’s business will treble this year. He enthuses, “Salesforce.com will be the next buzzword.” Beale also notes that InterAktive was “worth its weight in gold” and that the company was vital to his company achieving data integration and success with AppExchange. “Salesforce need more partners like InterAktiv,” he exclaims.

Yet, in spite of all these accolades, Napiltonia also readily admits that the AppExchange is a big change and some partners are still not used to the model and need to be “walked-through”. A major challenge he acknowledges is the need to relate to a new model which therefore requires a lot of training, education and a lot of effort to raise the level of awareness. This is definitely something Salesforce is not shying from and it is working hard on rolling out education and training programs for its different types of partners. On top of this, the company is also aggressively holding roadshows in the region.
Analysts see the AppExchange as a smart idea that will suit small and medium-size businesses especially, and expect this market to drive the platform. The AppExchange now offers more than 150 on-demand business application listings created by Salesforce, its customers, developers and partners, including new applications from Adobe, Skype, Factiva, and many others.

There is no charge for trying applications or using the AppExchange though applications from partners typically require a fee while those authored by Salesforce are currently offered free-of-charge. Unlike eBay, Salesforce foes not take a commission on the sale of applications from partners.

So far with the AppExchange, Salesforce has managed to keep its critics at bay, achieving more than 75,000 test drives of its various applications while still in preview mode. In its first week of availability to existing customers, 1500 installations were completed. Skeptics can only wait and see just how fast the AppExchange ecosystem will grow.