So far, customers preferring on-demand CRM haven't shown a preference in the way they want to buy it, Herbert said in an interview, though there's no doubt it's hot. Sales of online CRM accounted for only two per cent of the market three years ago and have been soaring since. But SaaS will only account for 22 per cent of all sales in the segment by the end of this decade, she said.
That may be due in part to pricing. While online CRM has an advantage of being available over the Web anywhere and offers fast start-up, some vendors insist customers buy licences, which could trim expected cost savings over their on-premises counterparts.
Microsoft isn't the only vendor with a new release this year. Maximizer Enterprise 10 is scheduled for the fall, while U.K.-based Sage
Software will celebrate its 20th anniversary with “something fun and big,” said Bergera.
Analyst warning
How they see Microsoft CRM Live varies. Microsoft partners, like FrontRange, shrug. Greg Anderson, its senior product director, believes the software giant's target is the enterprise.
Interestingly, Frank Falcone, Microsoft Canada's CRM product manager, says the target is small to mid-size companies.
Brodie, whose company is both a Microsoft and Maximizer partner, sees CRM Live appealing to smaller companies that lack IT infrastructure. She doesn't worry it will take away sales from her firm.
But Forrester's Herbert cautions that CRM Live will be a “major factor” in the market.
“It will definitely shake up the way people buy,” she said, because if organizations want pay as you go, quick implementation and someone else hosting, they can get it direct from Microsoft instead of smaller parties.
Her advice to VARs: “You're not going to be able to differentiate on simple hosting or implementation,” especially as CRM systems get easier to set up, easier to manage and more vendors are offering SaaS.
“Partners who will have the most success in the future are ones who will focus on verticals and vertical best practices, or certain processes - like a sales process - they can become an expert in. That will differentiate them,” she said.
itbusiness.ca
