Aggressive competition in the SaaS CRM space
Microsoft (NSDQ: MSFT), which has increased its focus on cloud computing in recent weeks, is now making a big push for its customer-relationship management software-as-a-service. Microsoft announced Tuesday that it's offering six months of free service to customers that switch from Salesforce.com or Oracle CRM On Demand to Microsoft Dynamics CRM Online.
At the same time, Microsoft eliminated the two-tier pricing and feature structure of Dynamics CRM Online. When it introduced the SaaS in April 2008, it offered a base version with 5 GB of storage for $44 per user per month, and a more feature-rich version with 20 GB of storage for $59 a month. Now it just offers a single version, for $44 a month and 5 GB of storage, which includes 200 custom entities and 200 workflows.
By comparison, Salesforce.com offers a professional version of CRM for $65 a month, and an enterprise version (its most popular) for $125 a month. Oracle CRM On Demand starts at $70 a month.