Microsoft Offers Free SaaS To Salesforce, Oracle Customers - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Cloud // Software as a Service

Microsoft Offers Free SaaS To Salesforce, Oracle Customers

The offer for six free months of Dynamics CRM Online came a day after Microsoft dropped prices for cloud versions of Exchange and SharePoint.

Microsoft, which has increased its focus on cloud computing in recent weeks, is now making a big push for its customer-relationship management software-as-a-service. Microsoft announced Tuesday that it's offering six months of free service to customers that switch from or Oracle CRM On Demand to Microsoft Dynamics CRM Online.

At the same time, Microsoft eliminated the two-tier pricing and feature structure of Dynamics CRM Online. When it introduced the SaaS in April 2008, it offered a base version with 5 GB of storage for $44 per user per month, and a more feature-rich version with 20 GB of storage for $59 a month. Now it just offers a single version, for $44 a month and 5 GB of storage, which includes 200 custom entities and 200 workflows.

By comparison, offers a professional version of CRM for $65 a month, and an enterprise version (its most popular) for $125 a month. Oracle CRM On Demand starts at $70 a month.

CRM continues to be the strongest and most attractive area for SaaS. The worldwide market for CRM was up 12.5% to $9.15 billion in 2008, according to Gartner. SaaS versions of CRM amounted to 20% of that market, up from 15% in 2007.

SAP and Oracle were the market leaders for the total CRM market; they both offer SaaS but sell more licenses for on-premises CRM., which only offers SaaS CRM, was ranked No. 3 with 10.6% of the market, up 43% from the previous year.

Microsoft, which offers both on-premises and SaaS CRM, was the fastest growing company in the market last year: it ranked No. 4 with 6.4% of the CRM market, up 75% from the previous year.

Microsoft also announced Tuesday that it had updated the Dynamics CRM Online service to include free mobile access, enhanced data import, and customizable views. (Since it's SaaS, all customers receive updates at once.)

It's been a busy week for Microsoft in the areas of SaaS and cloud computing. On Monday, it announced it had lowered the subscription prices for its Business Productivity Online Suite, which includes online versions of Exchange, SharePoint, Office Communications, and Office Live Meeting, from $15 a month per seat to $10 a month.

Microsoft has been competing heavily in the area of SaaS e-mail with Google, including a recent competition for 30,000 online e-mail subscriptions with the city of Los Angeles.

InformationWeek has published an in-depth report on new software models. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Flash Poll