Tuesday, April 19, 2011

Microsoft Rolls Out Dynamic CRM Beta

With one eye on the cloud  and the other on customer service, Microsoft  has rolled out the beta release of its new product for cloud-based and on-premise deployments of its CRM  product. The new online service is expected to come to market as Microsoft Dynamics CRM 2011.
"Microsoft is showcasing that it is not just a hardware platform play -- that it can do cloud services as well if not better than anyone else. This is an important test point for Microsoft," said Rob Enderle, principal analyst at the Enderle Group. "Microsoft has put an awful lot of effort here. When [CEO] Steve Ballmer took over, one of the things he wanted to do was showcase that he could successfully take the company in this different direction. This is his stamp on Microsoft, and that's why it's so critical to the firm."

The Next CRM Wave

The beta version of the Microsoft Dynamics CRM Online service is available in eight languages and 36 markets. Customers around the world have already started downloading the software to build solutions. The final version will be available by the end of 2010 in 40 markets and 41 languages.

Microsoft Dynamics CRM 2011 promises to make the enterprise more productive through familiar, connected and intelligent experiences for users inside and outside an organization. The software offers native Microsoft Outlook client, Microsoft Office contextual CRM Ribbon, RoleTailored design, and user personalization.

"Microsoft Dynamics CRM has tremendous momentum around the world, and we're glad to bring an exciting new wave of technology to our customers and partners," said Brad Wilson, general manager of Microsoft Dynamics CRM. "Our new beta release for cloud-based and on-premises deployments allows customers and partners to try the product and see the benefits from the investments that we've been making."

Business Kudos

Microsoft Dynamics CRM 2011 also offers what the software giant calls "intelligent experiences" through guided process dialogs, in-line data visualizations, performance and goal management, and real-time dashboards.

Finally, the software makes possible connected experiences through cloud development, Windows Azure integration, contextual Microsoft SharePoint document repositories, teamwork and collaboration, and the Microsoft Dynamics Marketplace.

"As an on-demand business , we value the fast deployment, ease of use, and rapid adoption that Microsoft Dynamics CRM 2011 delivers," said Karen Watts, CEO of Corefino Services LLC. "The flexibility and productivity  of Microsoft Dynamics CRM 2011 is a game-changer."

The CRM Marketplace

Microsoft also announced that the Microsoft Dynamics Marketplace will enter beta in late September. The new online service will be available at no additional cost to help partners market and distribute solutions to Microsoft Dynamics customers, including a catalog with more than 700 applications and professional services.

"Microsoft Dynamics CRM 2011 is the true realization of customer relationship management -- dynamic, open, uncompromising, extensible and fully integrated into the desktop -- as both software and a service," said Doug Zone, CTO of MetraTech. "When it is combined with the Microsoft Dynamics Marketplace, we will now be able to market and distribute our solutions to an even broader audience."

IT Software Spending Will Focus on CRM in 2011

A new survey indicates that customer relationship management (CRM ) software will have the largest spending increase this year among all types of software. The survey, by industry research firm Gartner, said 42 percent of respondents expect to increase their CRM spending from 2010.
About 39 percent will increase outlays for office suites, and 36 percent for enterprise resource planning. The survey was conducted among 1,500 heads of IT departments in 40 countries through last July. The questions were oriented toward actual budgets for last year and projections for 2011.

Opportunities in 'Greenfields'

The growing increase in CRM spending comes as spending on application software in general is rising a projected 31 percent this year. The largest increase is taking place in the Asia/Pacific region, which is growing 37 percent. Latin America application spending is growing by 35 percent, and the EMEA (Europe, Middle East, Africa) region by 27 percent.

Gartner describes both Latin America and Asia/Pacific as "greenfields" with the greatest sales opportunities.

Hai Hong Swinehart, a Gartner research analyst, said key areas for general software investment include the online channel; software as a service (SaaS ) deployments; and technologies that enable customer loyalty management, cross-sell and up-sell opportunities, and levels of customer service that are more targeted.

"Software application vendors should continue to build, fund and invest in software sales and marketing programs as the market is recovering," Swinehart said. He added that a market downturn and its aftermath are "disrupters that create great marketing and sales opportunities" if a company has "the right products, market programs, and funding."

Social CRM

For CRM buyers, Swinehart said, spending is focusing on customer retention and ways to enhance the customer experience, and there is increasing interest in "technologies that encourage development of customer communities and social networks."

Gartner said SaaS within the CRM industry could top $4 billion in revenue by 2014, which would make it nearly one-third of the entire CRM market. The segment with the strongest growth is marketing automation, driven by campaign and lead management and analytics.

The survey comes at a time when, according to Gartner, CRM is in a new era that is more about relationships and less about management. This new emphasis, the research firm said, is being driven by social media, and is yielding a "more open, honest and balanced approach" that works with customers to provide mutually beneficial relationships.

Earlier this month, Gartner reported that the CRM market is entering a three-year shake-up period with rapid changes. That report said the keys to the shake-up are the rise of social CRM and SaaS, the market reshuffling led by Salesforce.com, and the selling of CRM software from consultants and system integrators.