The CRM Software Guide

July 16, 2007

MON 16 JUL 2007

10 Reasons Why Microsoft isn't worrying Salesforce.com By Tom Greenberg | 1 comment Tags: hosted crm; live crm; microsoft crm; salesboom.com; salesforce; salesforce.com; web based cr

The latest move by Microsoft, announcing a new on-demand CRM offering- Live CRM- with much better pricing than Salesforce.com; is seen by many analysts as worrisome to SFDC's future growth and revenues. While there is concrete proof and signs that this is valid, I believe Salesforce.com should not be worried about Microsoft's move, perhaps they should be happy since the largest software company has validated the concept first created by Salesforce.com. Here is why:

1. Microsoft is too late to the game

   While Salesforce.com and other rivals such as Netsuite, Salesboom.com, RightNow, etc have been developing their solutions for 8 years, Microsoft has just recently started.

2. Microsoft does not have an actual full product yet

   Microsoft's move is hype. They have not actually released the product yet. They WILL release the BETA sometime in 2007!

3. Microsoft promises to release the so called Live CRM in 2008!

   The Full CRM Live product will only be available in July 2008 according to Microsoft.

4. Microsoft's strategy with partners is unclear.

   While they say the service will be sold through partners only, Steve Balmer got caught saying that it will also be offered directly to customers in the future which puts partners at risk.

5. Microsoft is not the only Giant Software company to join the on-demand revolution

   This latest move is seen as another big giant screaming loudly “Me Too!”. All the top enterprise solution providers such as Oracle and SAP have announced similar products.

6. Microsoft is the smallest Enterprise Solution provider

   The amount of business Microsoft's enterprise solutions departments generate is very little and thus Microsoft is not a major player in that sector anyways.

7. Companies don't want to host their data with Microsoft.

   I might be wrong on this one, but the last thing I want to do as a CEO of an IT company is trust my data to Microsoft.

8. Microsoft's Move validates the on-demand concept even more.

   Not that the SaaS- Software-as-a-Service model needs validating, but when Microsoft says it is a valid model, then all the better. This will mean a better stock price for SFDC and for any other rival wishing to go public or receive funding from Vcs.

9. Pricing is not the only deciding factor when choosing CRM

   While Microsoft's pricing is lower than Salesforce.com, as a good CRM consultant or professional services team member would tell you, pricing should be the last thing you base your CRM choice on.

10. The Market is doubling yearly

    The market grew by almost 104% in 2006, and expected to do the same in 2007, so there is a lot of business for everybody!

What Salesforce.com should be worried about is the threat smaller rivals poses. Many much smaller crm rivals have won major deals against Salesforce.com in the past months and years due to better customer service, pricing, vertical and industrial knowledge and solutions. Salesforce.com has been sharing the SaaS market by companies such as Netsuite, Salesboom.com, RightNow, Salesnet (acquired by RightNow), Entellium, and others.

One of those companies will create their own niche market within CRM and then will take the lead over Salesforce.com!

6:59 PM | Permalink | 1 comment | Tags: hosted crm; live crm; microsoft crm; salesboom.com; salesforce; salesforce.com; web based cr