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Microsoft seeks Cloud competitiveness with Dynamics CRM Online promotion

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18th Oct 2010
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The next version of Microsoft's CRM software, Dynamics CRM 2011, will begin launching in January along with a promotional price for Dynamics CRM Online.
To push the Cloud version into a market dominated by the likes of Salesforce.com and NetSuite, Microsoft announced a promotional price that takes a 12-month subscription from $44 per user per month down to $34, if a company signs up before June 30, 2011.
"We're trying to take point of view that on demand CRM is still pretty expensive today and we want to make it more affordable," commented Brad Wilson, Dynamics CRM general manager. "[Players in this market] have to have capabilities first, but also have to have good user experience. In the market today you can get capabilities from several companies.The question you have to ask is why would you pay twice or three times as much with same capabilities?"
As with all Microsoft software pronouncements, all roads lead to the Cloud. "When it comes to Cloud, we're all in," said Kirill Tatarinov, corporate vice president of Microsoft Business Solutions, kicking off a European Dynamics tour. "We enable customers to get the full benefits of the Cloud with Microsoft services, whether public or hosted by customers.
"There is a huge opportunity [with CRM] to unseat Oracle/Siebel, as the product has aged and does not deliver a good value proposition. We can offer our solution either on-premise or in the Cloud."
Microsoft also announced that Dynamics NAV 2009 R2, the new version of one of its enterprise resource planning (ERP) products, will be released in December. Additionally, Dynamics AX for Retail will expand into 22 more markets starting in February.
"We find that customers tend to deploy NAV for operational ERP with a standardised approach, leaving the administrative ERP that handles all the transactional processes at headquarters to run in the background," said Tatarinov. 
Microsoft also announced the general availability of its two-tier connector that lets Microsoft Dynamics AX work with the SAP Business Suite. According to this two-tier connector concept, an organisation's headquarters might use SAP's ERP solution while its branch subsidiaries might use Dynamics AX. 
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