This guest post is presented by Gilad David Maayan is a technology writer who has worked with over 150 technology companies including SAP, Imperva, Samsung NEXT, NetApp and Check Point, producing technical and thought leadership content that elucidates technical solutions for developers and IT leadership. Today he heads Agile SEO, the leading marketing agency in the technology industry.
Understanding and effectively managing Salesforce cloud costs can significantly impact a company’s bottom line. Salesforce, as a leading CRM platform, offers diverse functionality that cater to diverse business needs. However, the more of this functionality a business uses, the higher the ongoing cost of the platform.
From user licenses to API calls, from data storage to custom developments, each element plays a role in the overall expense structure. To make the most of Salesforce without overspending, businesses must be proactive in their approach to cost management, as part of a holistic cloud cost management strategy. This article delves into the details of Salesforce cloud costs and provides actionable strategies to keep these costs under control.
Factors Affecting Salesforce Cloud Costs
User Licenses
When it comes to Salesforce cloud costs, user licenses are one of the significant contributors. Salesforce offers different types of licenses, each with its own pricing. The more licenses you purchase, the higher your costs will be.
Note that some licenses offer more features and functionalities but come with a higher price tag. Pricing ranges from $25 / user / month for the Starter tier, all the way up to $500 / user / month for the Unlimited tier. Hence, you need to strike a balance between the number and type of licenses to manage your Salesforce costs effectively.
API Calls
Another factor affecting Salesforce cloud costs is API calls. Salesforce provides APIs to integrate with other systems and applications. However, each API call comes at a cost. The more API calls your business makes, the higher your costs will be.
By managing your API calls, you can control your Salesforce costs. You can identify and eliminate unnecessary API calls, optimize the usage of APIs, and align your API strategy with your business objectives.
Data Storage
Data storage is another factor that influences Salesforce cloud costs. Salesforce provides data storage for your records, files, and other data. However, the more data you store, the higher your costs will be.
By managing your data storage, you can reduce your Salesforce costs. You can identify and delete redundant or obsolete data, optimize your data management practices, and ensure that your data storage costs are in line with your business needs and budget.
Custom Development
The last factor affecting Salesforce cloud costs is custom development. Salesforce offers a highly customizable platform. You can develop custom apps, features, or integrations to meet your specific business needs. However, custom development comes with its costs.
By managing your custom development costs, you can control your Salesforce expenses. You can prioritize your development projects, leverage reusable components, and ensure that your custom development efforts are cost-effective and aligned with your business goals.
5 Tips for Managing Salesforce Cloud Costs
Let’s dive into five actionable tips that can help you manage your Salesforce cloud costs effectively.
Regularly Review User Licenses
Your Salesforce subscription is primarily based on the number of user licenses. It’s essential to regularly review and adjust these licenses to ensure you’re not paying for more than you need.
Each user license equates to a seat in your Salesforce organization. You pay for these seats whether they are occupied or not. If you have unused licenses, you’re essentially wasting money. Regularly reviewing your user licenses and deactivating unused or unnecessary ones is a simple yet effective way to manage your Salesforce costs.
Also evaluate the types of licenses used by your users. Make sure you’re using the right type of license for each user. Don’t pay for high-end licenses for users who only need basic features.
Optimize Data Storage
Data storage is another significant factor in Salesforce cost. Salesforce provides a certain amount of data storage per user license, and once you exceed this, you need to pay extra. Therefore, optimizing your data storage can help manage your Salesforce costs:
- Ensure you’re only storing necessary data: Regularly review your data and delete or archive anything that’s not needed.
- Use efficient data structures: Salesforce has various types of data storage, each with its own storage limit. By using the right type of storage for each piece of data, you can optimize your storage usage.
- External storage solutions: If you have large amounts of data that don’t need to be on Salesforce, moving them to an external storage solution can significantly reduce your Salesforce data storage costs.
Monitor API Calls
Salesforce limits the number of API calls you can make in a 24-hour period, based on your user licenses. Exceeding these limits can lead to additional costs. Therefore, monitoring your API calls is an important part of cost management.
- Understand your API usage: Identify which processes generate the most API calls and determine if they are necessary. You may find that some processes can be optimized or eliminated to reduce API calls.
- Consider using batch processes: Batch processes allow multiple records to be processed in a single API call, reducing the total number of API calls.
Utilize Native Features Before Third-Party Integrations
Salesforce offers a wide range of native features that can meet most business needs. Before resorting to third-party integrations, which can add to your costs, consider if you can achieve your goals using Salesforce’s native features.
Using native features can also improve your overall Salesforce experience. Native features are designed to work seamlessly with Salesforce, ensuring optimal performance and user experience.
Implement Governance Policies
Lastly, consider implementing governance policies to manage your Salesforce costs. Governance policies can help ensure your Salesforce usage aligns with your business goals and budget.
A good governance policy should cover usage guidelines, user licenses management, data storage optimization, API usage, and third-party integrations. It should also include regular reviews and audits to ensure compliance.
Implementing a governance policy may seem like a daunting task, but it’s an investment that can yield significant returns in terms of cost management.
Salesforce is a powerful platform that can drive your business success. However, without prudent cost management, it can become a costly endeavor. By regularly reviewing your user licenses, optimizing your data storage, monitoring your API calls, utilizing native features, and implementing governance policies, you can unlock the power of cost management using Salesforce.
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