Media reported this week that SugarCRM has secured $40 million in equity investment from Goldman Sachs. This can mean a lot of things to a lot of people, but if nothing else it shows that Sugar is serious about its growth and its place in the market.
To those of us who’ve been working with Sugar for years, this is not news. In fact, one of the things we’ve always loved about Sugar is its growth potential and the obvious commitment (at least to us) of management’s focus on growth. However, many Sugar competitors have long been touting, as one of their key attacks on Sugar, that it’s not a serious player in the market. The investment by Goldman Sachs should go a long way towards defeating that argument. This is exciting.
When going head to head against competitors, Sugar has always come out ahead in terms of hosting flexibility and options, customizability, and price point. The challenge, when there is one, has been our prospects saying “Who’s Sugar?” Or, the competitors chiming in “Oh…Sugar is a small player.” We’ve always known the truth that Sugar is a serious player in both the SMB and Enterprise space. After today, competitors like Salesforce and Microsoft will have a much more difficult time discounting Sugar. Not that they won’t try, but this latest outside investment in Sugar is a pretty good comeback.
In addition to helping cement Sugar as a serious player, the Goldman Sachs move also signals to existing Sugar users that they are not going anywhere, and in fact, have the funds to continue to heavily invest in the product. With a major new version planned for release later this year, these are exciting times to be in the Sugar ecosphere.
Kudos to Sugar and the SugarCRM management team! And, congratulations to all of us as well for being able to reap the benefits….