Salesforce.com, IBM to Target Small Businesses

Salesforce.com, a developer of online sales software, will announce today a pact with IBM Corp. as part of a major effort by IBM to focus on the small-business market.

Salesforce.com will become the first application that IBM will offer to small businesses who sign up for a Web-based services package, to help small businesses get on the Internet.

“In the U.S., 65% of small businesses are online, but a very small percent of them have Web sites,” said Mike Braun, general manager of IBM’s Global Small Business unit.

“Part of it is because it’s very expensive and frankly, it’s a hell of a lot of work.”

Since October, IBM has been offering a service that lets small businesses get online easily and quickly for $99 a month.

The service, called WebConnections, includes network connections, a network server made by IBM’s Whistle Communications business, a firewall, 24-hour technical support and an Internet address.

Now, with San Francisco-based Salesforce.com, IBM will offer IBM.Salesforce.com, a service that will let small businesses automate their sales process. The privately held company, founded last year, has more than 4,000 customers, including Siemens and LookSmart.

IBM said Salesforce.com is the first in a series of application service providers (ASPs) it will work with to provide more services to its small-business customers.

IBM said there are 20 million small businesses in the United States alone.