Microsoft Readies Major Update to Dynamics CRM

For this summer, Microsoft (Nasdaq: MSFT) Dynamics is readying its next major CRM application -- a Software as a Service (SaaS) application that will be delivered on a multi-tenant platform.

The rollout will enhance the competitive position of the division's CRM tools in the small and medium-sized business (SMB) space considerably, as SaaS applications -- particularly those built from the ground up to use a single-code base -- have become a key option for many firms.

The application, code-named "Titan," will be available through hosting partners and the upcoming Microsoft Dynamics Live CRM service.

Upgrades Available

With Titan, as with other vendors that are straddling both on premise and SaaS delivery models, Microsoft will allow customers to upgrade to its Dynamics CRM 3.0 product.

"Microsoft has recognized that true multi-tenant, on-demand CRM has a strong value proposition in the mid-market, as well as larger enterprises," Rebecca Wettemann, vice president of Nucleus Research, told CRM Buyer.

"This should make them a stronger competitor against the other on-demand players such as Salesforce.com (NYSE: CRM) and RightNow."

Leveraging TAP

Microsoft is also preparing a new partnership initiative called the "Technology Adoption Program," or TAP, as part of its product rollout. Approximately 300 partners will be involved in the program during the first quarter.

By the second quarter, according to Microsoft, the Titan TAP will include more than 1,000 partners. These firms are building vertical applications, SaaS mash-ups, integration connectors and other extensions to add value to Titan, the company stated, now that they have the ability to write applications on CRM Live.

TAP is a key milestone for Microsoft Dynamics in its strategy "to deliver the power of choice to customers," said Brad Wilson, general manager of Microsoft Dynamics CRM.

"With early access to the new release, our partners can develop common offerings that span the on-premise, partner-hosted, and Microsoft Dynamics Live CRM deployment options," he added.

The Titan TAP program has improved the collaboration between Genesys and Microsoft developers, explained Paul Lang, vice president of product management for Genesys, another partner in the program.

"We can discuss common requirements and implementation, and get a better product out faster," he told CRM Buyer.

Attracting the Little Guys

The new application is also expected attract the smallest of firms that have minimal IT assets in place.

When the application is introduced, Mike Snyder, principal with Sonoma Partners, expects to grow his client base among this segment of the potential user base.

"We are expecting to attract new clients and prospects that don't have or want to make an investment in the necessary hardware such as Active Directory or SQL Server," he told CRM Buyer.