CRM 2011 – Microsoft CRM Cloud price adds up to more business

Microsoft has really been promoting CRM 2011, widgets counting down to the launch featured on loads of sites, constant buzz about it on the internet.

I was amused by the aggressiveness Microsoft used in promoting CRM 2011 and openly talking about how bad it’s rival products were.  Oracle, Salesforce and act all got a mention and labelled legacy systems.

I think with the cloud computing microsoft is looking to push this, they are basically moving from owning all the computer operating systems, to trying to own the servers people use and leaving them with a basic desktop and internet browser.

during the presentation Microsoft kept emphasising how it has spent billions getting loads of servers up and running to host all the CRM users coming their way.

This article mentions the important fact of license discounting

But here’s something that’s really going to shake up the cloud CRM market, and not just in the UK. The price of Microsoft Dynamics CRM Online is starting out at a discounted rate of only £22.75 per user per month. If you compare this price with SalesForce.com, which is typically around £45 per user per month; it’s a major difference and incentive to go with the Microsoft product. This is highlighted even more when you consider the extensive features of Microsoft Dynamics CRM 2011, its familiarity and ease of use, and the big productivity gains you can expect from it. What’s more, you only pay for what you need in respect of storage, which is again a major advantage over several other online CRM solutions.

The promotional price of Microsoft Dynamics CRM Online will last until June this year. However, even after the discount is withdrawn, we expect the standard price of the product to remain extremely competitive and the total cost of ownership to be lower than its key competitors. In fact, Microsoft has already seen many businesses switch to Microsoft Dynamics CRM from products such as SalesForce, Oracle Siebel CRM and SAP CRM. It will be interesting to see if and how these other online CRM providers, and SalesForce in particular, react to the attractive pricing, ease of use, high user adoption rates and the flexibility of the new version of Microsoft Dynamics CRM.

 

This article compares the Microsoft CRM online price to salesforce

Okay, maybe I am repeating the first point a tad here, but I really believe the buzz around Dynamics CRM 2011 comes from the pricing promotions in the market. Microsoft has been very aggressive getting the word out on the $34 per month pricing they are offering for Dynamics CRM Online, as well as, the offer to rebate $200 per user for SaleForce.com clients.

Money talks in this world and I think Microsoft are going to get a lot people signing up because their offer goes until June but I think they are going to use price to grab market share off their competitors.