Microsoft CRM Hosting

Posted by Mike Snyder on October 13, 2005  |  Comments (1)

A few months ago, there was a lot of hub-bub about Microsoft offering a hosted version of Microsoft CRM. At the time, it wasn't clear to me if:

• Microsoft would offer customers and partners the option to "rent" the software (via a SPLA) and then they are on their own to host it somewhere.

OR

• Microsoft would offer a hosted service (on their servers) where customers and partners could sign up and pay a monthly fee for the license AND hosting.

Steve Ballmer briefly spoke about this subject at a conference and a lot of the industry analysts interpreted his comments to indicate that Microsoft would offer a monthly license and hosting service. I watched a webcast of Ballmer's comments, and he seemed purposely vague to me. Therefore, I couldn't definitively say one or the other which way Microsoft would go. I recently found some new information on the subject of a hosted version of Microsoft CRM (from an official Microsoft for Partners website):

Microsoft CRM Hosting
At Microsoft Business Summit 2005, Steve Ballmer reiterated the Microsoft commitment to delivering innovative and affordable CRM solutions through both a traditional on-premise model and hosted offerings. Microsoft strongly believes that the market wants choice, and the company will provide that flexibility through a:

Deployment model: Microsoft partners can deliver Microsoft CRM either as an on-premise solution or as a hosted solution (with the option to move between the two). Business model: With different licensing and pricing models such as perpetual licensing, financing, and/or subscription licensing, Microsoft partners and customers can choose the option that best fits their business licensing and pricing models. Broad Microsoft offerings: According to their business needs, customers can leverage Microsoft’s integrated innovation and selectively expand Microsoft Dynamics CRM with other Microsoft products such as Exchange Server, SharePoint Portal Server, and Live Communications Server. Rich partner ecosystem: Customers can select from VARs, SI, ISVs, and hosters to combine the best of breed and tailor the solution to their specific needs. Microsoft wants to ensure that every customer has access to flexible and affordable CRM offerings that fit their businesses, and we’re aligning our products, license models, tools, and partners to help make that as simple and flexible as possible.

So I think there are a few important points here:

• Microsoft will DEFINITELY offer a monthly license pricing model for Microsoft CRM (available for customers or partners to host)

• Microsoft did not say they would offer hosting for Microsoft CRM, but they did not say they wouldn't offer hosting either.

Personally, I could not be more excited about a monthly license option for Microsoft CRM. This will give customers an inexpensive way to try the software before making a large capital investment. After using Microsoft CRM 3.0 for just a few weeks, anyone would be impressed at how powerful and flexible it is.