Zoho Doubles Customer Count in 5 Months, Racing Google Apps to 1 Million User Mark
When I first met Raju Vegesna at the Office 2.0 conference last October, Zoho had just passed the 100,000 user mark. Less than 5 months later, Raju says they're closing in on 200,000.
While Nielsen/NetRating (PDF) claims that Google has a 92% share of the web-based productivity apps market, Raju points out that Zoho and ThinkFree together attract as many unique visitors as Google Docs and Spreadsheet. (See Ismael Ghalimi's elaboration on the user count discrepancy.) 432,156 users visited Google Docs last December; that's 3% fewer than in October. Zoho, on the other hand, has undergone rapid growth (as CEO Sridhar Vembu puts it, "we try harder") - and hopes to beat Google to the 1 million user goal.
By the way, when Raju and I were introduced, a colleague of his described him as Zoho's PR strategist. I just found out that in addition to attracting favorable coverage in every possible media outlet, he was also in charge of company's data center infrastructure. (Raju recently managed to offload this responsibility.) He insists it wasn't as much work as it sounds, because Zoho's apps run on a self-healing grid that's attached to a pool of standby servers. If any application server dies, the appropriate code will automatically be deployed on one of the standby machines. The failed hardware can be swapped out whenever someone has time. As for customer data, everything is replicated three times and backed up offsite.
(Zoho's Rackable servers are colo-ed at Savvis and Equinix. They're in the process of migrating from 32 bit to 64 bit machines with dual core Intel Woodcrest processors and 8 to 16 GB of RAM. The new machines arrived last week, but won't be deployed until late March. As Google's recent hard drive study shows, a longer burn-in period can help weed out faulty hardware.)
Zoho's HR processes are similarly efficient. Adventnet, Zoho's parent company, has 600 employees (and counting). Whenever a new Zoho product is conceived, a dedicated team of 2-6 developers is allocated to the project. Having rapid access to talent gives Zoho a tremendous competitive advantage. Forget Google Office; the loooong list of ideas and partnerships that Zoho's in the process of implementing might coalesce into Zoho Life: single sign on access to an ever growing suite of fully integrated web apps that do... everything.
Keep an eye on Zoho; they're setting the standards for delivering a seamless SaaS experience. And sign up for an account if you don't already have one. Lastly, stay tuned. They've got some big announcements on the way.
One of the Web hosting industry's longest-standing citizens, Isabel Wang is also a high-tech enthusiast. Through her WHIR blog, she examines the impact emerging Web technologies will have on the Web hosting business, and on the motivations of hosting consumers. Isabel has been in the web hosting ... (Read full bio)
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Comment by Anonymous on Monday, March 05, 2007
I think they could sink Google if they were to push out a whitelabel solution.
Comment by Anonymous on Monday, March 05, 2007
From a recent Zoho Blog post:
"A decision to do a product could take few months in some cases to couple of hours in other cases. The source of ideas can be from anywhere. They come from internal teams in some cases or it could even come from you... Earlier this year when we released Zoho Writer and Sheet we didn't have fixed plans on doing a presentation app. But then users started asking us about release dates of our presentation app. We quickly setup a team for Zoho Show (during Jan) and then released Zoho Show in June. Now thats all history."
So you should ask them about the release date for their white label solution :)
Comment by Anonymous on Tuesday, March 06, 2007
Wow I just signed up for the free 3 user CRM account and am impressed.
However, if I were a small business that wanted to use this I would be overwhelmed and have no idea where to begin or what to do with this. It looks similar to Salesforce and SugarCRM though so people with experience on those applications should feel comfortable with it.
Perhaps they should offer some consulting services to setup CRM, best practices, etc. I can't wait to see what they are coming out with next.
Comment by Anonymous on Tuesday, March 06, 2007
Zoho's main selling point isn't any particular application's features. It's the way everything works seamlessly together. You can embed a spreadsheet in a wiki or a poll in a slide presentation. Every time you update any document, the changes are instantly reflected everywhere else. So no more emailing Excel spreadsheets around because someone needs to update a Powerpoint slide deck!
Comment by Anonymous on Monday, March 12, 2007
It's true: Zoho is a lot less hassle to use than Google Spreadsheets and the like...but neither really hits the mark, because you're having to fake local copies of the files. That means the primary reason you're using the service (assuming it's to share data, not just to cheap out on the software) is only partially there: you're still going to end up with lots of different versions of the file.
I recently came across <a href='http://www.xcellery.com'>Xcellery, which is a service that lets you store Excel spreadsheets online and share them intelligently. Given that everyone I know already has Excel and would prefer to keep using it, this looks like a much better model.
Comment by Anonymous on Monday, March 12, 2007
Hi Simon,
I don't prefer to keep using Excel :) I'm finding that I'm using online spreadsheets more and more. And in cases when I want to share data with someone who won't be editing the file, I can just publish the Google/Zoho spreadsheet's URL, or embed sections in a website or blog. Xcellery doesn't seem to have such capabilities; maybe it should!
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