Microsoft will start selling its CRM 3.0 package from
early December after releasing the public beta of the product
earlier this month.
A big plus is integration with Microsoft Outlook, but analysts
have advised that despite the improved marketing features and
integration with Microsoft Office, there are many more mature
customer relationship management alternatives that may offer more
features.
Microsoft said its CRM product currently has 150,000 users, and
Microsoft is piloting the product internally with plans to roll it
out to 10,000 staff.
CRM 3.0 is aimed at medium-sized companies and offers a
marketing automation module, including list and campaign management
functions, and a sales module that features "quick campaign"
creation for sales people. In addition, a new service scheduling
module can carry out complex scheduling automatically.
The release includes an improved range of customisation tools,
integrates with Microsoft Office and has the ability to export CRM
data into Excel files more easily.
Brad Wilson, general manager Microsoft CRM, said, "We have
focused not on having the longest list of features, but on things
like Outlook integration - the features that people need."
He added that there are some basic CRM features in Outlook - via
Microsoft Business Contact Manager - and some embedded CRM
capabilities as part of Microsoft Business Solutions' enterprise
resource planning products. However, CRM 3.0 represents a more
complete system.
"The embedded CRM in these ERP products will appeal to some
industries where they know their 200 customers and CRM is not a
high priority. Companies looking for increased CRM functionality,
while retaining a single-supplier relationship with Microsoft
Business Solutions, should move to Microsoft CRM 3.0," said Brian
Prentice, research director at analyst firm Gartner.
Among the main criticisms voiced by industry experts is that CRM
3.0 lacks the features of rival products from Onyx Software,
SalesLogix and Pivotal.
Another problem is being locked into Microsoft technology. David
Bradshaw, principal analyst at Ovum, said, "The close integration
with Outlook is a big plus. It will get the sales force to use the
CRM system, and this makes adoption and training easier.
"Microsoft is making good progress, and has fairly good
facilities, but you are committing yourself to the Microsoft
technology stack."
Hosted CRM 3.0 will be an option
Microsoft will include subscription-based licensing options for
CRM 3.0, enabling the product to be hosted by third parties, a
model popularised by the likes of Salesforce.com.
However, Gartner research director Brian Prentice, said, "A vast
gulf separates Microsoft's efforts from those of dedicated hosting
companies. For example, Salesforce.com, RightNow and NetSuite are
deeply committed to hosting as an exclusive model of business
application delivery."
He advised users considering a hosted CRM 3.0 deployment to
negotiate their contract at the outset of the agreement, and to
ensure the partner does not retain exclusive rights to the data,
the provision of migration services or customisations developed by
the user.