How To Reduce Salesforce Licensing Cost?

How To Reduce Salesforce Licensing Cost?

Salesforce is the most popular CRM in the world and highly valued by businesses for a number of reasons. Businesses, whether big or small, trust Salesforce but to get the most out of it they need to understand the Salesforce pricing structure.

Salesforce Licensing

At AppExchange, many installations fail due to wrong user licenses/features, and due to the lack of understanding and attention paid by organizations as they don’t know how to optimize their licenses.

Here are some key tips to help you optimize the costs of your Salesforce licenses:

  1. Choose the license according to your needs

Many companies blindly purchase Salesforce Enterprise Edition user licenses to get full access to the standard CRM and Force.com AppExchange apps. Although such companies get access to any standard or custom application as needed without any restrictions they never use all the features and functionalities for which they actually pay a huge amount of money.

Therefore, despite not choosing the full enterprise version, companies can make smart decisions by adopting other available licensing options that allow them to get the whole power of Salesforce CRM without paying large licensing fees.

  • Salesforce Platform License

The Salesforce Platform license is suitable for companies that have a  strong in-house development team. This gives access to custom applications developed by themselves or uploaded into Force.com AppExchange. However, they cannot access standard CRM functionalities. It gives access to the core platform functionalities such as accounts, contacts, reports, custom sections, etc., along with restrictions on user permissions and some other restrictions.Another license, Salesforce Platform Light, is better for small and medium businesses. This is the same as above, but there is a monthly user login limit.Both of the above licenses are perfect for businesses that have created custom objects to manage new data sets and doesn’t require any readymade CRM objects such as “Cases,” “Leads,” “Solutions,” “Campaigns” and others available in Salesforce Enterprise Edition.

  • Signup for Packages Carefully

Sometimes we rush and choose packages blindly without researching much about them. We must remember that not all packages may be good deals, and we, therefore, need to evaluate each licensing option carefully in relation to our business requirements. 

For instance, the Social Enterprise License Agreement (SELA), includes social tools such as Heroku and Radian6, is an attractive medium for businesses or wanting to deploy the bulk of Salesforce.com’s software portfolio. However, this will be more expensive than standard subscriptions for other companies who cannot increase or adopt the volume of software apps within the expected time period.

  1. Use Force.com Licenses 

Companies can save licenses by subscribing to Force.com licenses for their users instead of subscribing to Salesforce Enterprise Edition.

Salesforce Enterprise licenses cost around $1,500 per year per license, whereas Force.com Enterprise licenses only cost $300 per user license per year. Through this way, businesses can save $1,200 per license every year.

Ten custom objects with the same capabilities available in the Salesforce Enterprise Edition are available to Force.com enterprise users. With the Force.com App Bundle Force update, users can access 200 custom objects at a price of $960 per license per year. Hence it will be a saving of $540 per license per year.

There are two variants of the Force.com license. One is the Force.com One App License and the other is the Force.com-Free License.

One App is the application for the users who only need to access a single custom application. This is similar to the Salesforce Platform license but is limited to just one application and read-only access to accounts and contact objects. On the other hand, a Free license allows users to run one custom application. This is the same as license one App but without access to special accounts and objects and without standard CRM functionality.

  1. Choosing a Salesforce Modular Build License Approach and decide what exactly is needed

Salesforce.com offers a modular approach and additional functionality at an additional cost for core offerings.

For instance, mobile functionality, knowledge base modules, offline access, visual workflows, partner and community portals, etc. are offered. Each of these functionalities cost extra fees in addition to the basic license fee.

While the modular design allows users to pay only for what they need, getting the benefits requires having a clear idea of ​​what functionality is actually needed. Adding features just because it is there and looks good might result in unnecessary costs for business.

  1. Manage users actively

Regardless of what type of license is used, only one user can log in with one license, and it is not possible to share credentials for that user with other users.

It is important to log a case with “License Reduction” in the subject field and follow it up as soon as the user is deactivated and the license does not need to be re-assigned to someone else. Businesses with a large number of licenses can significantly reduce license costs over time.

  1. Negotiate

Always negotiate with your provider for pricing at renewal. Keep track of the actual use of the application over time. If usage is low, try and negotiate with Salesforce.com during the annual renewal phase.

Salesforce is a global leader in CRM offerings. Follow the above tips to harness the power of the world’s #1 CRM without spending a lot of money.

Cloud Analogy Technique-Salesforce Sites vs Community License

Cloud Analogy will be your ideal partner to reduce Salesforce license cost if:

  • Majority of your users or a subset of your users in Salesforce must only have a read only access.
  • You have Salesforce reps doing data entry only.
  • You want your customer base of 100+ to have their own unique pages and URLs to discuss their requests, tickets, etc.

We will recommend you to move towards Salesforce sites. At Cloud Analogy, we have specialist teams of experienced and certified Salesforce administrators, consultants, developers, and more who can guide with the development of Salesforce sites and multiple case studies. (Note: You may have a look at the good list of case studies by Salesforce themselves).

Here are some examples on how Cloud Analogy has guided success-driven organizations and institutions to get the best value for their hard-earned money.

Cloud Analogy’s Site and Communities-based Project Demo Videos


Please watch the video https://www.youtube.com/watch?v=GKQBbda9Q9U in which Ajay Dubedi, the CEO of Cloud Analogy, is providing a demo for the solution for a European University using Salesforce sites. 

The following features were developed tested and deployed:

    1. Course management. Creating a new course by admin. Registration of courses by students.
    2. Faculty management. Creating a new faculty record [Guest faculty OR Regular faculty]
  • Payment gateway integration.
  • Training cell management.
  1. Student management. Creating and updating Students details. Profile with picture and details [Employment history| Course registered].

Cloud Analogy also worked on a different site project, please refer to https://youtu.be/27SoDWYf6xo The client’s agents and customers now have access to information within Salesforce without purchasing extra salesforce licences.




PROCESS AND RELATIONSHIP MANAGEMENT is a platform for Private Equity, Hedge Fund, Fund-of-Funds, and Venture Capital GPs that manages Fundraising Processes, Investor Relations, Deal Pipeline & Current Investments, Contacts & Relationships, Documents & Workflow, and other critical Operations functions. Created by Finance professionals that understand your process, PROCESS AND RELATIONSHIP MANAGEMENT provides all that you need, and nothing that you don’t.

Please read some of other prominent blogs on www.ajaydubedi.com | http://www.ajaydubedi.com/salesforce-blog/employee-community/

Here are the few list of community projects we have completed so far.

> Employ Community setup and Knowledge article feature Setup.

> Customer Community Configure and Setup: This was a partner Community Setup and integration with multiple Partner Orgs.

Reduce your Salesforce licensing cost by joining hands with Cloud Analogy, the world’s most successful and trusted Salesforce development company. Our teams of experienced and certified Salesforce Cloud Consultants are always ready to assist you. 

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