Microsoft plays catch-up with hosted CRM launch

Microsoft Dynamics CRM Online now available in UK

Microsoft announced the worldwide availability of the public cloud version of its customer relationship management (CRM) system today.

Available immediately, Microsoft Dynamics CRM Online is the online variant of the new Microsoft Dynamics CRM 2011 system.

Asked why a public cloud version of Dynamics had taken so long to surface outside the US and Canada, Microsoft CRM general manager Brad Wilson dodged the question.

"I think our entry into this market will raise the competitive level in the CRM category. We've been in beta since September 9 with 11,500 firms participating, and we're seeing a lot of demand," said Wilson.

The big problem for Microsoft, according to Quocirca business process analysis service director Clive Longbottom, is that it is "very late to the game".

"I don't think Oracle or Salesforce will be quaking in their boots over this, but they'd still be silly to say 'too little, too late'," he added.

"There's still a lot of users of Microsoft CRM Dynamics out there. Persuading them to give up an on-premise solution and go to a cloud solution will be an easy task in some cases, but a lot of them will say 'over our dead body, there's a lot of data we need to secure here, and we don't trust the cloud'," pointed out Longbottom.

Wilson said there were three delivery models for the online service, one through Microsoft's own datacentres, an on-premise model, and also a partner-hosted one.

"The service available through our datacentres launches on 17 January whereas the other two will be available on 28 February – six weeks after the online version goes live," added Wilson.

Headline features in the new release are real-time business intelligence, "which allows you to have multiple personalised dashboards for the different individuals in the organisation," said Wilson.

"We're also adding extra integration with SharePoint directly into CRM, so that you'll have SharePoint collaboration directly into the interface, so for people who use SharePoint it'll be a very seamless interface," he added.

In addition to giving users the option of trialling the package free for a month, Microsoft is launching a promotional price of £22.75 per user, per month for 12 months for any customers signing up between now and 30 June. The standard price will be £29.50 per user per month.

"We want to make online CRM broadly available and more broadly affordable," said Wilson.

Microsoft is also offering a $200 additional rebate to firms that switch from competing offerings.

"For customers using Salesforce.com, Oracle CRM On Demand or Oracle Siebel CRM, we're offering a $200 incentive per user to help you make the conversion from your current system," said Wilson.

"It'll do what it says on the can, and it's a great way to compete against Salesforce, but they've given Salesforce a 10-year head start and it'll be an uphill battle," said Longbottom.