CRM Software Industry News

QuickBase Adds Dynamic Forms, New Charting and Packaged Application Updates

QuickBase, a division of Intuit Inc., announced improvements that make configuring and using QuickBase applications faster and easier than other software alternatives. QuickBase combines workflow, data, communication management functions in a flexible, Web-based solution that provides a wide array of powerful business management applications.

“QuickBase has the unique ability to be configured by business users – the people who know the workflows the best,” said Jana Eggers, general manager of Intuit QuickBase. “Built together with our customers, each new feature supports increasing their workgroup’s productivity with applications that fit naturally into their existing workflows.”

Customers have found that QuickBase applications solve their application needs at a fraction of the cost of competitors’ products.

“I easily develop useful applications that typically cost a fortune from traditional enterprise software vendors,” said Anne Walsh, marketing manager at Genworth Financial. Her company, located in Richmond, VA, uses QuickBase for marketing and sales applications. “The dynamic forms feature in the new release allowed me to easily apply rules and brought my forms to life for my users.”

QuickBase Upgrades

Corporate workgroups across thousands of companies, including 43 of the Fortune 100, use QuickBase applications to address hundreds of business problems, as diverse as project, sales and IT management, and recruiting and Sarbanes-Oxley compliance. Groups can start with any of QuickBase’s 60 ready-made applications, configure those applications to their needs, or build their own. QuickBase is known for its ability to deploy applications in just days, with little training needed by users.

New features

The new QuickBase features include:

Dynamic Forms – Input forms are the heart of any application. QuickBase’s dynamic forms let users set up complex forms with point-and-click ease, using English, not an indecipherable programming language. These type of forms change as new information becomes available. For example:
In a sales application, dynamic forms can require reps to fill out opportunity qualification questions when the status field changes to “contacted.”
In a project management application, a timestamp with the current date can be automatically inserted when the task status field changes to complete.
Dashboards and Charting – Driving action is critical for any application. QuickBase has enhanced two action drivers: dashboards and charts.
Dashboards are essential to showing users what they need to do. The new QuickBase dashboards are designed to help users know the work they need to do and help them get to it quickly.
Charting has added new chart types, as well as roll-over, drill down and easy customization options. These features make screens easier to read and understand, while giving quick access to core information for taking action.
QuickBase Upgrades

Packaged Application Updates – The new features are compatible with QuickBase packaged applications, which include several new features of their own.
Manage Multiple Projects includes the ability to import projects from Microsoft Project with synchronization capabilities.
Manage a Project and Manage Multiple Projects are enhanced with Resource Allocation, a one-stop way to identify the workload of resources across projects.
Manage Your Sales Team includes new dashboard pages for sales reps and sales managers, and new dynamic form capabilities.

With more than one-third of the Fortune 100 tapping QuickBase for CRM, sales management and project management, Intuit thinks it has a winner on its hands.
Salesforce.com isn’t the only game in town when it comes to CRM-as-a-service. In a certain sense, it isn’t even the oldest. The former Siebel Systems Inc. launched its own ASP-oriented CRM service (the ill-fated sales.com) seven years ago, after all, and a host of like-minded vendors—each with ASP-based business models—also tried to make a go of it by providing hosted CRM.

Salesforce.com did establish and help popularize the CRM-as-a-service model, however. And thanks in large part to Salesforce.com’s success, a number of companies—from hosted CRM pure plays such as NetSuite Inc. (the former NetLedger), to shrink-wrapped-cum-CRM-as-a-service competitors such as Sage Software Inc. (the former Best Software) to specialty vendors such as Amdocs—have established thriving hosted CRM practices.

You can add Intuit Inc.’s QuickBase CRM- and software-as-a-service (SaaS) entry to that list, too. QuickBase started out as OneBase, a hosted database and lightweight enterprise applications service developed by former ASP Turning Mill Software. Following the millennial ASP implosion, OneBase was acquired by Intuit, which—in late 2000—rechristened it QuickBase. Since then, QuickBase—like Cleavon Little’s Sheriff Bart (of Blazing Saddles fame)—has rapidly become a big underground success in the SaaS space: it’s used by more than one-third of the Fortune 100 (34 companies) and has a thriving mid-market business, too.

QuickBase this week announced the latest and greatest version of its SaaS product. Like Salesforce.com—which, by virtue of its hosted architecture, can quickly expose new features and capabilities to users—QuickBase users can start taking immediate advantage of the revamped service’s improved dashboarding and charting features, officials claim.

So much for similarities. In point of fact, QuickBase officials argue, their SaaS entry actually differs from Salesforce.com in many key respects. “Our focus is providing a business process platform, not necessarily [a collection of] applications,” says Jana Eggers, general manager of Intuit’s QuickBase division. “If you’re familiar with [IBM’s] Lotus Notes, you can see what I mean. What Notes brought [to the table] was business process-centric applications. I ran a company on Notes, and we had our customer service application on there, we had our recruiting application on there, we had our sales management application on there, and the power of it was it kept us all on the same page. Quickbase is that kind of platform, but the advantage [over Notes] is you don’t have the challenge of keeping it up and running, because it’s a hosted service.”

Be that as it may, QuickBase—Like SaaS competitor Salesforce.com—aspires to be more than just a hosted CRM package. It offers sales management, marketing, project management, and other hosted processes, too. Its value proposition, Eggers says, is its straightforwardness: QuickBase exposes a richly declarative interface, such that sales representatives, sales managers, or executives can themselves create reports—typically by using declarative queries—or (in the newest version) structure dashboard views. “That’s why IT really appreciates [QuickBase], because it’s a tool that the business person can understand, and that [IT] can still quickly and easily support,” she comments. Don’t let its straightforward declarative query model fool you, Eggers stresses: Beneath the covers, QuickBase boasts complex query and analysis capabilities. “Quickbase has its own reporting engine, just like you would expect from any best-of-breed tool, and we’ve built in [support for] cross-tab, regular, and static table-type reporting. Charting is one of the things that we enhanced in this release, along with rollover capabilities to see exact information, and we also have drill-down capabilities, too,” she argues.

The newest QuickBase revision also delivers an improved dashboard experience, Eggers says, with Asynchronous Java over XML (AJaX) support and a more interactive user interface. “In this version, we’ve really improved our dashboarding capabilities so that it’s laid out in the way that you want, so it gives the users the information they need very quickly and very easily,” she explains. Power users, of course, can still export QuickBase data to Excel (.XLS), or to other formats (such as comma separated values).

QuickBase dashboards, like QuickBase reports, can be sourced to right-time or static data, Eggers says. “We call these [right-time reports or dashboards] views, and the reason why we call them views is because it’s actually a view into live data. Reports, even dashboards can feel kind of static,” she indicates.

The newest release of QuickBase also helps automate report distribution, Eggers says. “We have some very proactive reporting. There’s a lot of automation that reaches out for information and sends it to me, so twice a week I get information on customer roadblocks. We have a customer support team that sends something that says, ‘This is where customers get roadblocks,’ and I can also set up kind of like a dashboard that gives me an at-a-glance view of customer roadblocks.”

New features include dynamic forms, dashboards and compatibility with Microsoft Project

June 20, 2006 (Computerworld) — Intuit Inc. announced today that it’s girding its QuickBase Web-hosted collaboration software to compete with offerings from Microsoft Corp. and software-as-a-service start-ups by adding new features such as easy-to-build dynamic forms and dashboards and compatibility with Microsoft Project management software.

Best-known for its Quicken line of personal finance software, the Mountain View, Calif.-based vendor has carved out a tidy business with QuickBase since its first release in 2001. QuickBase is used by several thousand companies, including 43 of the Fortune 100, mostly at the department or workgroup level to enhance workflow and share data among remote workers, according to Intuit.

Those features were relatively rare when QuickBase was first released. But in February, Microsoft released Office Live, a set of hosted collaboration applications based on SharePoint, its collaboration server, aimed at small businesses. It is also readying new versions of enterprise software such as SharePoint and InfoPath, which let users create XML-based forms.

“Intuit has done a pretty good job of migrating some of its user base onto the Web,” said Paul DeGroot, an analyst at Directions on Microsoft, a Kirkland, Wash.-based consulting firm. “Microsoft clearly can’t ignore this area.”

In addition, Web-focused companies like Google Inc., with its Google Spreadsheets and Writely beta applications, and smaller start-ups have released a raft of Web-based applications that mimic Office applications and provide Internet-based collaboration.

So far, neither Microsoft’s nor other vendors’ offerings have tempted Anne Walsh, a database administrator at Genworth Financial Inc. who has used QuickBase for five years. About 250 employees in her division, which sells insurance for long-term care, use QuickBase for sharing documents and keeping track of processes.

“We were an extremely siloed organization,” she said. “People didn’t feel like they were in the loop. Also, salespeople were e-mailing PDFs of spreadsheets to each other. That led to the problem of dueling versions.” Now, “rather than manage 10 million spreadsheets, I can have a single source of truth that I can then disseminate everywhere,” she said. Workflow has improved so much, Walsh said, that “people grab me in the hallway and literally hug and tell me that QuickBase has changed their life.”

Other divisions at Genworth, a 7,000-employee financial services provider in Richmond, Va., that was spun out of General Electric Co. in 2004, are considering moving to QuickBase, Walsh said.

Mark Shnier, vice president of customer service and logistics at G.E. Shnier Co., a $150 million-a-year Toronto-based wholesaler of carpet and tile, said nontechnical users like himself can now create dynamic forms using QuickBase that add or delete questions and fields depending on respondents’ answers.

“I don’t know Javascript or HTML. I’d say I’m about a B+ level user of Excel. But I can develop applications pretty quickly with QuickBase,” said Shnier.

The company integrates data from its central ERP system into QuickBase. It also uses the software to centrally host important documents that are accessible by 200 employees.

DeGroot said that while Intuit “may have moved more upmarket than other vendors,” it’s products are still mostly purchased by corporate users at the workgroup level, rather than implemented by central IT. That may allow it to fit in a niche between Microsoft’s Office Live and the offerings of Web start-ups, which are designed for smaller firms, and Microsoft’s SharePoint and InfoPath, which are designed for big companies and “require buy-in from the entire organization and take a lot of work to manage,” said DeGroot.

Software-as-a-service applications from Google, Yahoo, and Salesforce.com are driving change in architecture, appearance and business model of enterprise applications, turning the sector from a niche into a multi-billion dollar market. But the business model isn’t without its challenges.
Calling the trend a “disruptive phenomenon,” Merrill Lynch & Co. analyst Kash Rangan said in a report released Friday that upstarts, such as Salesforce.com, WebEx, RightNow, Taleo, Blackboard and NetSuite, will benefit most, compared with traditional software players Microsoft, SAP and Oracle attempting to move into the space.

Part of the disruption will come from the method in which traditional software companies recognize revenue from SaaS sales, according to AMR Research Inc. senior vice president Jim Shepherd. “If SAP sells a system today for $1 million, they recognize the million dollars on the day they sell it and it goes into the revenue for that quarter,” he said. “If they were to sell that same system as a software as a service, they may get $20,000 per month for the next 10 years.”

The same dollar amount is spent on applications, but logged in accounting books differently under the SaaS business model. Assuming there’s a strong demand for these services, it could have a negative short-term impact on license revenue at traditional software vendors, Shepherd said.

That’s part of the reason Microsoft, Oracle and SAP didn’t rush into offering these services offerings, which companies like Intuit Inc. have been offering for years.

For years, Intuit has delivered TurboTax and QuickBooks through multi-tenant SaaS applications, where multiple companies or consumers run the application on the same code base.

Intuit QuickBase General Manager Janna Eggers said it’s easy for companies to get started in the space, but difficult to deliver the service. “Look at Salesforce.com, for example, the challenges they had earlier this year to keep their site up and running,” she said. “Getting a full service SaaS platform up and running quickly is difficult and it’s going to take major players, rather than startups, to deliver them long term.”

One way of looking at SaaS, also referred to as OnDemand, is by seeing it as a distribution model in which Web applications are hosted by the vendor or service provider, such as Intuit’s TurboTax or QuickBooks. Recent examples of SaaS applications offered by Google include Google Spreadsheet and Writely, because they are Internet-based rather than desktop-bound applications. Salesforce.com offers customer relationship management (CRM) applications through the SaaS model.

Both Eggers and Rangan agree the model is transitioning from a niche to multibillion dollar market, but the Merrill Lynch analyst believes traditional software companies adding SaaS will find it more difficult to make the move.

By simplifying the software stack and integration requirements, companies offering SaaS services can address market requirements better. But industry veteran Eggers questions whether Microsoft can change fast enough to keep companies, such as Saleforce.com, at bay.

One mistake too many companies make is to reserve the majority of a project’s budget for license fees and implementation. When that happens, other expenditures — such as support for new users, training and changing the use of a system to meet new corporate needs — tend to be

Choosing the right system in the first place is key to optimizing your investment in a customer relationship management system  — and that process can be strewn with potential pitfalls, as Part 1 in this two-part series points out.

While the selection process can be unnerving, implementation can be a downright nightmare — and, in some cases, what happens after a project is over can send a company straight back to square one.

Take the sad, true story of “Company X.”
Tales of Woe
Company X decided to invest in a CRM system provided by a vendor whose name is automatically associated with the industry. The choice made sense at the time; few executives past the boom years of the late 1990s were willing to take a chance recommending a system that might not deliver. It might be expensive, the thinking went, but it was a safe choice.

Two years and US$2 million dollars later, Company X realized it had chosen poorly.

“I think by the time we came into the picture, maybe eight people were willing to use it,” Jana Eggers, general manager of QuickBase, a division of Intuit, told CRM Buyer. “The problem was, the system never matched the business processes at the company or how the employees worked.”

Eventually, Company X decided to move to QuickBase, she said.

“Company Y,” which had chosen a system from the same vendor, experienced a similar horror story, according to Infinity Info Systems, the firm that was called in after things had gone badly awry.

“It was a pilot project lasting 18 months — a time frame we just couldn’t comprehend — and millions had already been spent,” Yacov Wrocherinsky, Infinity’s founder and CEO, told CRM Buyer. “We came in to help them assess why the system wasn’t working the way they wanted it to.”

Company Y also switched to a new system “for a fraction of what they were paying to maintain the old system,” he said.

The moral of these stories: Even an application with a marquee name will not work for every company.

Fortunately, companies are becoming savvier about their CRM implementations , Wrocherinsky said. Pilot projects rarely stretch beyond a year, and firms expect to see tangible results much sooner.

Sometimes, though, they do not realize the results they had initially expected — and when that happens, their first inclination is to invest more money in the project. For some firms, this additional expenditure proves to be worthwhile. Others, though, believe it is more cost-effective to cut their losses.

From the Dramatic …
A tried-and-true knowledge base has built up over the years for companies that want to ensure their CRM projects are a success. Much of this work takes place before the system is ever selected.

The companies that tend to succeed in the end, more often than not, are those that

map out their requirements for a system, including the processes it is expected to support;
are realistic in what the system can actually accomplish; and
set real-world financial goals for the projects.

However, it is also essential to plan for the second piece — what happens after the vendors, consultants and systems integrators have left the building and the company is live with its new purchase.

Of all the eventualities a company might foresee when planning for this phase of the project, ripping out a multimillion dollar CRM system and replacing it with another is the most dramatic — and, of course, the most painful.

It is still one that a company should consider.

“There is always that possibility, no matter how well thought out the selection process was, that the project will fail,” Eggers said. “If that happens, you have to be careful of how much you are going to spend trying to make it work.”

Pick that number in advance, she recommended, and stick to it.

… To the Mundane
There are other, less-dramatic eventualities for the post-implementation phase that a company should think through. In this phase, it is crucial to factor these considerations into the budget supporting the project.

One mistake too many companies make is to reserve the majority of a project’s budget for license fees and implementation. When that happens, other expenditures — such as support for new users, training and changing the use of a system to meet new corporate needs — tend to be underfunded.

“It is a given: Once you have the system in place, you have to keep nurturing it and supporting it,” Wrocherinsky said.

The most oft-repeated mistake following implementation is underinvestment in training, according to Michael Pessetti, vice president of sales  and marketing for SalesPage Technologies.

“Companies will save more and realize more return in the long run if they begin investing in training up front,” he told CRM Buyer.

Companies need to be smart about training, taking it beyond the one-size-fits-all sessions that vendors typically offer with their systems. Rather, he advised, training should be tailored to the various user communities and their requirements.

Training also must be ongoing — not only so that employees maintain their skill sets, but also to make sure they are up-to-date with any changes in the system’s use.

“Companies are dynamic. There will always be new hires, new product lines and services offered, and so on,” Pessetti said. Most companies look for systems that scale with the organization’s growth but then forget the training piece associated with those changes.

Maintenance — another post-implementation expenditure — is not quite the hidden drain on a budget that training can be. However, Pessetti noted, some firms are still not aware that vendors have become more flexible with their service level agreements — at least for those customers prepared to negotiate.

“I have seen companies spend too much on SLAs merely because they didn’t think to ask for concessions,” he remarked.

It is important to be up-to-date on industry trends — such as what discounts are considered the norm, which vendors are willing to negotiate, which do not budge, and so on.

As Pessetti pointed out, “a lot of companies don’t realize exactly how much can be negotiable in these agreements.”

FirstWave has been selected as one of the Top 40 Innovative Technology
companies in Georgia by the Technology Association of Georgia (TAG), the
state’s leading technology organization.

The TAG Top 40 were chosen based on a number of criteria, including: degree of
innovation; scope and financial impact of innovation; likelihood of success; and
promotion of Georgia’s innovative efforts nationally and internationally.
Companies selected to be in the Top 40 also participate in a showcase exhibit at
the Georgia Technology Summit, attracting some 800 of the state’s technology
leaders.

FirstWave Delivers 428% Improvement

ATLANTA, February 5, 2007 - FirstWave Technologies, Inc. (NASDAQ: FSTW) announced today a report from a leading research firm on their experience using FirstWave’s new eMarketing solution. CSO Insights is a research firm that specializes in measuring the effectiveness of today’s sales and marketing organizations. Jim Dickie, partner in CSO Insights, stated that FirstWave’s “response rate of getting executives to click through to our survey was 428% more than we had been achieving. Our reaction was this of course had to be due to the quality of the list they were using. FirstWave acknowledged that might be part of it, but suggested we take their exact approach to send invitations to the executives we had already invited on our own list. Our results—a 251% improvement over what we had previously been generating when left on our own!”

So What Does Better Look Like?

What were the keys to this improvement in performance? “FirstWave showed us their approach was a combination of several factors; list quality; the ability to segment the exact class of executives we should target; optimized delivery methods to get through corporate spam filters; targeted messaging to optimize click-throughs; and analytics that track behavior so that the process can be improved based on the lessons learned from each previous campaign,” continued Dickie.

On November 8, 2006 FirstWave issued two press releases describing a major upgrade of technologies and a major expansion of solution offerings. Firstwave’s focus is to provide internet marketing solutions designed to ensure you’re first: first to reach the right business prospects, first to nurture them — and first in mind when they’re ready to buy. “The CSO Insights Report validates that our new technology and solution offering is on the right track. In our own internal marketing programs using our new technology, we are consistently seeing marketing responses that are 50% above the high end of expected response rates in the marketing industry”, said Richard Brock, CEO of FirstWave. The complete CSO Insights report prepared for distribution to their customers can be downloaded at the FirstWave web site: www.Firstwave.net.

Revenue improvement and increased cash position

ATLANTA, November 8, 2006 - FirstWave Technologies, Inc. (NASDAQ: FSTW) today announced financial results for the third quarter ended September 30, 2006. FirstWave reports revenue improvements in all categories when compared to the amounts reported in the prior quarter and four consecutive quarters of increased cash position.

Third Quarter 2006 compared to Second Quarter 2006

FirstWave’s software revenues of $59,000 increased 40.5% in the third quarter of 2006 as compared to software revenues of $42,000 in the second quarter of 2006, excluding a one-time transaction of software revenues of $500,000. The Company has already closed four transactions in the fourth quarter of 2006 contributing $50,000 in software revenues. A fifth transaction for $28,500 in software revenues has been signed in the fourth quarter subject to an acceptance clause that the Company believes will clear by November 30, 2006. Three of these transactions are with existing customers, while two are with new large customers, providing additional confirmation of the quality and cost-effectiveness of FirstWave’s technologies.

The significant increase in professional services revenues in the third quarter of 2006 of $98,000 as compared to $20,000 in the second quarter of 2006 reflects the improvements from the Company’s direct and channel strategy. Based on work orders already signed in addition to other work orders expected to be signed in the fourth quarter of 2006, FirstWave anticipates continuing improvement in its professional services revenues.

“Excluding the one time transaction of $500,000 in software revenues from the unusual and one time sale of intellectual property to Galactus Software in the second quarter, total revenues for the third quarter of 2006 increased 27.3% to $583,000 from $458,000 in the second quarter of 2006,” said Richard Brock, CEO of FirstWave.

FirstWave has modified its go-to-market strategy by hiring direct sales and professional services staff with the expectation of further boosting revenues and profits. The relationship with M1 Global announced on October 10, 2005 has been profitable and has resulted in small projects with several new customers who are using our product on a hosted basis. M1 Global and FirstWave are continuing to explore ways to improve their respective revenue generation activities, and the outsourcing arrangement has been adjusted favorably to FirstWave to reflect the lower levels of expenses being incurred by M1 on an ongoing basis. Both companies continue to pursue joint opportunities.

During the third quarter of 2006, the Company recorded an impairment charge of $51,000 to write-down an investment to its new carrying value of $15,000. Also recorded in the third quarter of 2006 is a $20,000 compensation charge relating to stock options as now required in accordance with generally accepted accounting principles. Future quarters will also include such non-cash expenses for stock options.

“I am pleased with our results for the third quarter of 2006 which includes a net loss from operations of only $22,000 during a quarter in which we expended considerable effort to make major advances in our technology and to expand the market for our products and services,” said Richard Brock. “Based upon reasonable expectations of revenues and collections, we believe we will continue to realize revenue growth and positive cash flows in the fourth quarter of 2006.”

The Company is also issuing two other press releases today, describing a major upgrade of technologies and a major expansion of solution offerings. Full details of the Company’s new offerings and product enhancements can be found at our enhanced website, www.FirstWave.net. Because of these significant other announcements, the Company has elected to give limited guidance but is not setting a precedent for giving guidance in future periods.

Third Quarter 2006 compared to Third Quarter 2005

Net loss applicable to common shareholders from continuing operations for the third quarter of 2006 improved 84.3% to a net loss of $114,000 from a net loss of $728,000 in the third quarter of 2005. Net loss per basic and diluted share from continuing operations was $0.04 for the third quarter of 2006 compared to a net loss per basic and diluted share of $0.27 per basic and diluted share for the third quarter of 2005. For the nine months ended September 30, 2006, the net loss applicable to common shareholders was $90,000, or $0.03 per basic and diluted share, compared to a net loss of $1,762,000 for the nine months ended September 30, 2005, or $0.65 per basic and diluted share.

Software revenues from continuing operations decreased 75.5% to $59,000 in the third quarter of 2006 from $241,000 in the third quarter of 2005. For the nine months ended September 30, 2006, software revenues from continuing operations increased 56.5% to $648,000 from $414,000 for the nine months ended September 30, 2005. Professional services revenues from continuing operations decreased 50.8% to $98,000 in the third quarter of 2006 from $199,000 in the third quarter of 2005. For the nine months ended September 30, 2006, professional services revenues from continuing operations decreased 63.2% to $212,000 from $576,000 for the nine months ended September 30, 2005. Maintenance revenues from continuing operations decreased 12.7% to $420,000 during the third quarter of 2006 from $481,000 in the third quarter of 2005. For the nine months ended September 30, 2006, maintenance revenues from continuing operations decreased 18.6% to $1,274,000 in 2006 from $1,566,000 for the nine months ended September 30, 2005. Total revenues from continuing operations for the third quarter of 2006 decreased 37.2% to $583,000 from $928,000 in the third quarter of 2005. For the nine months ended September 30, 2006, total revenues from continuing operations decreased 17.8% to $2,140,000 from $2,602,000 for the nine months ended September 30, 2005.

“Our net loss has decreased significantly compared to prior years in part due to the reduction of our expenses to match our lower revenues” said Richard Brock.

Cash Balance
FirstWave reported a cash balance of $963,000 at September 30, 2006 which represents positive cash flows for the quarter of $47,000 and the fourth consecutive quarter of positive cash flows. The Company continues to carry no debt.

New products, services and enhancements expand the potential market

ATLANTA, November 8, 2006 — FirstWave Technologies, Inc. (Nasdaq: FSTW - News), a web-based, demand generation, lead leakage and revenue retention solutions provider, is taking advantage of its CRM infrastructure products by expanding into solutions on top of those products. Coupled with unique new lead generation services, FirstWave has positioned its Marketing, Sales, and Customer Support modules to reflect the benefits the customer needs to achieve: maximize demand generation, minimize lead leakage, and optimize revenue retention. Current customers will continue to receive significant enhancements to their feature-rich and high-quality software modules. Now they can also have leads generated by FirstWave to feed their CRM modules.

FirstWave has also expanded its delivery methods to include a subscription-based solution. As the market demand for qualified sales leads and the ability to convert opportunities to profits continues to grow, the Company recognizes the importance of delivering more flexibility in delivery and payment options to its customers. FirstWave will continue to offer its perpetual license option but now has expanded to offer subscription based pricing. This subscription based pricing can be delivered either behind the customer’s firewall or hosted by FirstWave as a Software-as-a-Service (SaaS).

The new capabilities coupled with flexible deliver options gives all involved a “win-win”: customers receive qualified leads and opportunities through a delivery mechanism that fits their corporate culture and FirstWave continues to satisfy its customers’ needs with expanded product offerings.

FirstWave’s new delivery option gives the Company several advantages: (1) enabling buyers to focus on providers who can deliver the highest ROI (as measured by the optimal Demand Generation, minimum Lead Leakage, or maximum Revenue Retention) - an area where FirstWave can effectively compete; (2) allowing FirstWave to create a steady stream of relatively predictable recurring revenues as a result of subscription-based transactions in lieu of difficult to forecast, large license sales; (3) allowing FirstWave to expand its market opportunity into the Small and Medium Business market and (4) providing FirstWave the ability to expand its distribution channel by attracting marketing companies as partners (see FirstWave’s “partner page” on its website).

New release exceeds expectations and expands FirstWave’s
potential market and partners

ATLANTA, November 8, 2006 — FirstWave Technologies, Inc. (Nasdaq: FSTW - News), a web-based, demand generation, lead leakage and revenue retention solutions provider, today delivered its most significant release to customers in several years. This release, available immediately, provides the best attributes of marketing list companies, optimized e-mail delivery services, and CRM software solutions bundled together from a single source and offered on a new, monthly subscription service. In conjunction with this release, FirstWave is positioning the Company to take advantage of its full-featured CRM suite while now providing products and services to generate, track and manage leads.

The release benefits marketing, sales and support users as it includes, among many other features: Outlook integration which allows users to spend their time in Outlook and pass/retrieve CRM information to and from FirstWave; sales dashboards to allow quick review of activities, forecasts and more, customer dashboards that give a 360 degree view of customer activities, marketing campaign definition, tracking and management, integration into email marketing lead generation services, real-time metric dashboard reviewing lead results (opens, click-throughs and more), web tracking behavior of each lead giving reps immediate knowledge of “hot” prospects, real-time lead distribution, and marketing, sales and support out of the box reports.

The Company is also providing its customers maximum flexibility in the way they acquire FirstWave products. Three options are offered: perpetual license fees with up-front payments (as traditionally offered), hosting of the application by a FirstWave partner with subscription pricing, or payment on a monthly subscription model with the customer operating the software behind their firewall (the same as if they had paid the traditional up-front software license). FirstWave has expanded the hosted options to enable small and medium businesses to take advantage of the per user monthly charges.