Microsoft Takes Aim at Salesforce.com

Microsoft has made some changes in both its licensing and pricing for its CRM Online application with the launch of its next update to Dynamics CRM (slated for later this year). This move is being seen as a way for them to compete more directly with Salesforce.com.

Switching from one pricing option ($44 per user, per month), Microsoft will now offer three options:

  • Dynamics CRM Professional Edition: $65 per user, per month
  • Basic edition: $30 per user, per month
  • Essential Edition: $15 per user, per month

The professional edition will include everything from sales-force automation to customer care. The Basic edition will allow users to manage accounts, contacts, leads, cases and access custom applications. The Essential version is a very light-weight version of the application. Online and on-premises licenses for Microsoft CRM will be “equivalent”, allowing customers to mix and match based on their needs and mobile licenses will be included at no additional charge.

We see this as both good and bad – the pricing has gone up, BUT there are also more options to choose from which will give some customers the ability to save some money if they don’t need all of the functionality of the higher end versions. The flexibility of the licensing is also a nice bonus for those who have varied needs for on-premise and online licenses.

Questions about this change? Sign up for our next Live Microsoft Q&A webinar and ask us!

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