Microsoft Slashes Dynamics CRM Pricing

By Greg McNevin

October 31, 2007: In a bid to snatch a greater share of the on-demand CRM market, Microsoft has slashed the price of its Dynamics CRM package by 40 percent.

Announced at the firm’s Convergence 2007 event in Copenhagen last week, the significant price cut to resellers should certainly put competition between the Microsoft, a late comer to the CRM market, and Salesforce.com on the boil.

The price cut will see resellers get Dynamics Live 4.0 for US$15 (AU$16) per subscription, a price that will no doubt put heavy pressure on Salesforce despite Dynamics lacking some features.

“Microsoft were late to the CRM marketplace, but they have learnt from other vendors and used experienced CRM developers to build a quality product,” said Karl Newman, service delivery director at Microsoft partner ConsultCRM according to VNUnet.com.

Microsoft is hoping that the new price point, along with tight links into Outlook, Word and Excel and multi-tenancy architecture constitute a solid value proposition for potential clients. This coupled with new reseller agreements with EveryWare, Increase, JayThom, and Mondo in Europe and Australia certainly shows that it is deadly serious about taking on Salesforce on its own turf.

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