Today Microsoft re-announced
their on-demand CRM solution, Microsoft Dynamics CRM - including a new
software-as-a-service offering called Microsoft Dynamics CRM Live. According to
salesforce.com CEO Marc Benioff, once again Redmond is reacting to the success
of service-based companies like salesforce.com and Google.
In an internal email, Benioff riffs on the state of the online business industry - paying particular attention to Microsoft's position in it. He outlines a theory he calls "The Business Web" and explains why his company salesforce.com, rather than Microsoft, is in the driving seat. In the email, Benioff says: "...the fact is that Microsoft is being out hustled by everyone."
The full email is re-produced in my ZDNet blog.
Comments
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We agree with Marc's comments - the future of software will be delivered via service on the web. It won't be dominated by any one company or service or technology. It will provide customers with choice, freedom, availability and cost savings.
We applaud large companies such as Microsoft, Google, Yahoo and Saleforce.com validating the software as a service market place.
However, we believe companies like ours, that are smaller, nimbler, more flexible and that provide a higher level of service to its customers will be the deciding factors in who will be successful in the marketplace.
Posted by: Nick Bertolino | July 12, 2006 6:58 AM
I also agree that MS Dynamics Live can't be salesforce killer. But I found some interesting article about it.
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Breathing Room
Competition is fierce but for now there is room for these competitors to breathe. Right now, for example, Salesforce has 350,000 U.S. users, versus 28 million customer-facing employees. The opportunity outside the U.S. is likely 2-3 times as large.
‚ÄúThe SMB [small- and medium-sized business] market for OnDemand applications is relatively untapped,‚Ä? Kash Rangan, the software analyst at Merrill Lynch, said.
Posted by: MK | July 12, 2006 11:06 AM