CRM - May 2008 - (Page 16)

CRM TRENDS AND NEWS ANALYSIS ON THE SCENE: CONVERGENCE 2008 Is CRM Too Hard for Microsoft? Redmond’s mighty software maker finally has what it needs for a great CRM program—but is it too late? A t Microsoft’s Convergence event in March, President and Chief Executive Officer Steve Ballmer told attendees that, thanks to acquisitions and its own development work, Microsoft was in the right place as far as business applications were concerned. “Unless we close this Yahoo! deal, the biggest decision I’ve made as CEO is pushing into the business applications area,” he said. “It’s one of the best decisions I’ve ever made, one of the most important decisions I’ve ever made, and the reason that brings us all here today.” Ballmer also reinforced Microsoft’s ongoing commitment to some of its core business-software design philosophies: role-tailored user interfaces; the expan- Before making comparisons to other vension of business intelligence to the indi- dors, he pitched Microsoft’s own merits: vidual user; ubiquity in personal produc- “We’re going to bring raw innovation to tivity applications; and familiarity for these issues,” he said. “We’re going to business users accessing team applica- bring integrated thinking about how ERP tions regardless of whether those appli- and CRM fit in the broader context of cations are deployed on company what people are trying to do with techservers or via one of Microsoft’s hosted nology.” Microsoft, he added, would approach business soluarrangements. Ballmer also noted that the “Microsoft would be best served by tions “with the same kind of long-term apincreasingly broad opproach and tenacity we tions available in CRM simply acknowledging that it never bring to everything.” technology meant it made much of Dynamics, and But, in a report rewas re-emerging in selling off its CRM and ERP assets.” leased a week before various incarnations, the conference, The managing relation- —Brenon Daly, The 451 Group 451 Group suggested ships of all kinds—a phenomenon he referred to as “xRM.” that the right strategy for Microsoft is Ballmer then tackled a question often disengagement—not from the customer, posed by prospective customers: Why Mi- but from CRM entirely. “[In] one area, crosoft? “We’ve been in [this marketplace] Microsoft stubbornly clings to business now for about seven years,” Ballmer said, as usual: CRM and ERP software, which “and I still get asked, ‘Is Microsoft a seri- it sells under the Dynamics brand,” wrote ous player in business applications?’” Brenon Daly, a financial analyst with The CUSTOMER RELATIONSHIP MANAGEMENT | MAY 2008 Microsoft President and Chief Executive Officer Steve Ballmer addresses the crowd at this year’s show. 451 Group.“Despite spending more than $2 billion on deals—plus untold tens of millions on [research and development] over the past half decade—this product line continues to lag rivals significantly, particularly at the high end of the market.” The report went on: “Unlike its alsoran online search division, which has turned to a desperation bid for Yahoo to make up lost ground, Microsoft shouldn’t look to acquisitions to close the gap on rivals of Dynamics. In fact, quite the opposite. We would argue that Microsoft would be best served by simply acknowledging that it never made much of Dynamics, and selling off its CRM and ERP assets.” Daly’s strong sentiments weren’t echoed by Convergence attendees; the consensus has been that the Dynamics platform, including CRM, is a strong www.destinationCRM.com 16 JOHN LOOMIS http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - May 2008

CRM - May 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Is CRM Too Hard for Microsoft Vendors Go Virtual For Feedback Sense-sational Marketing How UGC Can Benefit CRM DestinationCRM Dashboard Price Check, Aisle 5 Required Reading The Moving Target The Excellence Myth Seven Steps to SOA Success And They're Off! Are You Ready to Party? Skin in the Game The Right Numbers Secret of My Success Re: Tooling Connect Pint of View

CRM - May 2008

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