Thursday, April 24, 2008

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Microsoft unveils on-demand CRM


Microsoft launched its first on-demand enterprise application on Tuesday — just days behind the announcement of a Salesforce/Google partnership and the release of Zoho's own enterprise-level SaaS.

Dynamics CRM Online offers full marketing, sales and service capabilities on an Internet-based model. Desktop tools can also be integrated into the system.

“CRM is a big program within Microsoft,” Brad Wilson, general manager of Microsoft Dynamics CRM, said of the launch. “We're investing more than a billion dollars a year to build out data centers for on-demand delivery of applications. We have a very fast-growing CRM business and a very big focus in on delivering applications over the Internet, so it's a natural thing for us to come out with product of this type.”

A combination of digital and other forms of marketing will be deployed to generate demand for Dynamics CRM Online; Wilson said Microsoft tends to use a lot of direct marketing, including e-mail, direct mail and direct response vehicles, created internally and with agencies. The on-demand service will initially be marketed to small and midsize businesses and departments within larger organizations, but no one particular industry will be targeted.

In a competitive move, Microsoft has priced Dynamics CRM Online at $59 per user per month for its Professional Edition Plus — slightly less than Salesforce's $65 full-featured application.

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