Microsoft has made its big move into customer relationship management, releasing a CRM package for the US that will become available in the UK in the second half of this year. But missing features, complexity in Microsoft's product lines and any failure to perfect its distribution strategy could deter IT buyers.
The software, called Microsoft CRM, is available in Standard and Professional editions. The product is aimed at organisations or departments with up to 500 users, with pricing starting at $395 (about £260) per user. It can be accessed through Outlook or a Web browser and is intended to integrate with Microsoft's Great Plains and Navision back-office programs.
Analyst firm Gartner indicated that it would not recommend the Standard edition as a CRM option, because it lacked important components such as workflow and campaign-management capabilities. The Professional version adds support for workflow rules, customisation and back-office integration with enterprise resource planning (ERP) systems such as SAP R/3.
Microsoft will distribute the Standard edition of CRM through its Small Business Solutions unit, providing a huge reseller channel for the product. Previously, the software was to be distributed only through a small channel of CRM-certified partners.
However, some analysts argued that good CRM systems require good procedures, not just effective tools. "CRM is not a technology problem, it's a corporate processes problem," said Clive Longbottom of analyst firm Quocirca. "It can't be done through PC World - it needs consultancy."
Positioning the product may also pose difficulties. The acquisitions of Great Plains and Navision have provided Micro-soft with back-office suites that have some integrated CRM capabilities. Also, it is a partner with Siebel Systems, the dominant force in enterprise CRM, and has links with other CRM firms such as Onyx and Pivotal. Microsoft is also likely to be in competition with CRM firms such as FrontRange, which makes the GoldMine product.
But even if it makes a slow start in CRM, few doubt that Microsoft will become a key competitor. "Microsoft is redefining what CRM [is] all about, and it is happening faster than most [firms] in this CRM market recognise," according to a recent report from analyst firm Aberdeen Group.
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