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The hosted CRM provider said the contract with SunGard is its largest yet and offers proof that the hosted model is catching on with bigger companies.

As a sign that the hosted CRM model may be catching on with bigger companies, said it has signed its largest deal yet.

The San Francisco-based application service provider announced today that SunGard Data Systems Inc., a Wayne, Pa.-based provider of integrated IT solutions for financial services and information availability services, will standardize 1,000 users worldwide on S3, hosted software for sales force automation, campaign management and customer service and support.'s first thousand-user commitment moved Marc Benioff,'s chairman and CEO, to claim in a release that "the on-demand model is no longer just for small to medium-sized businesses."

SunGard selected based on the model's compatibility with SunGard's own experience serving financial institutions by offering software as a service, company officials said.

Hosted software has traditionally appealed more to smaller businesses and divisions within larger firms. They often don't have the budgets or IT staff to implement and manage CRM applications in house.

Additionally, on Monday, announced that Tangram Enterprise Solutions Inc., an automated IT asset management firm in Cary, N.C., has also standardized its sales and marketing operations with S3.

Looking to replace its homegrown CRM application, Tangram selected from an initial list of eight CRM vendors. It chose for value, functionality and ease of installation, Tangram officials said.

"It certainly has helped us put a lot into looking at what we do on a customer-by-customer, campaign-by-campaign account," said John Charnovich, chief information officer and senior vice president of Tangram. "It's really allowing us to take a look at what to really fine-tune and adjust, which really allows us to tighten our pipeline account and sales."

Tangram has been using since April, Charnovich said.

SunGard and Tangram join more than 6,900 companies who use S3.'s hosted S3 software costs $125 per user per month.

FOR MORE INFORMATION: releases S3, its "most significant step" releases application development tools

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