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July 14, 2006

Microsoft Dynamics CRM Live blowback

Posted by David Hunter at 8:56 AM ET.

When Microsoft announced its self-hosted version of Dynamics CRM earlier this week, I wondered if some of the hosting partners they had enticed with the general availability of a hosted version in March might feel a little grumpy. That seems to be the case, but the problem is larger than just stubbed toes as Phil Wainewright blogs at ZDNet in Microsoft CRM Live is a dud:

One of Microsoft’s hosting partners just blew a fuse on hearing Microsoft pre-announce its CRM Live service, if a lengthy and impassioned comment on the Microsoft Dynamics CRM Team Blog is to be believed.

Apparently posted by Robert E Spivack, VP of sales and marketing at SPIV Technologies Group, the comment responds to a glowing write-up of the Live CRM announcement by David Thatcher, general manager of Microsoft Dynamics CRM.

From that comment:

Announcing vaporware for delivery almost a year away serves what purpose?

As a Microsoft hosting partner, we constantly are told that “Microsoft cares about you and really does want to help hosters” yet what do you do?

Pre-announce a Microsoft-branded hosted CRM solution that isn’t real, while we still struggle to provide CRM hosting using the kludgy “hosted CRM” update that you guys threw together half-baked?

We are still struggling just to bring up CRM in a test environment, and from reading the Microsoft Dynamics community website posts, MANY people are having trouble getting it installed.

Wainewright has some more observations on how uncomfortably Dynamics CRM has been jammed into the “Live” model and also on the vaporware aspect here:

This is a fud announcement of a plan to introduce a product this time next year (“in the second quarter of 2007″) in the hope that it’ll persuade customers to postpone buying decisions. The ploy was often used by the likes of IBM, Oracle and others back in the 1990s to spread ‘fear, uncertainty and doubt’ (hence, FUD) among competitors. It worked when software applications used to take several years to develop and several more to deploy. What difference would a mere nine months make to anyone’s implementation timescales? But in the on-demand world, the strategy is as redundant as Microsoft’s far-from-Live CRM service.

Since per the announcement press release, “Microsoft CRM Live will use the same code base as the on-premise and partner-hosted versions of Microsoft CRM” you do have to wonder why it will take Microsoft so long to trot out its hosted service. Wainewright’s answer is that because the “same code base” has doomed it from the start, vaporware is all that is left.

Filed under CRM, Coopetition, Dynamics, Dynamics Live, General Business, MBS, Microsoft, Online Services, Partner Program,

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5 Responses to “Microsoft Dynamics CRM Live blowback”

  1. Partnering with Microsoft in the “Live” era -- Microsoft News Tracker Says:

    [...] – Hosted managed services and applications: Since that same Microsoft hosted Live Dynamics CRM announcement blew partners who were already hosting Dynamics out of the water, this hardly seems enticing. [...]

  2. Microsoft Business Solutions goes online -- Microsoft News Tracker Says:

    [...] Microsoft ran into a conflict with partners already offering hosted Dynamics CRM in July when they rolled out their own offering and it looks like they have consciously avoided that this time around by leaving it solely to the partners. Of course, that’s what the partners thought back in March when hosted CRM was first announced. Filed under Executives, Bill Gates, MBS, General Business, Dynamics, Great Plains, CRM, Axapta, Navision, Solomon, Online Services, Microsoft, Live Dynamics CRM [...]

  3. Microsoft betas Dynamics Live CRM -- Microsoft News Tracker Says:

    [...] Catching up on an item from last week – Microsoft Debuts Multitenant CRM Offering to Partner Community: Jan. 10, 2007 — Microsoft Corp. today announced that it is previewing the next major release of Microsoft Dynamics™ CRM — code-named “Titan” — with a broad range of partners through the company’s Technology Adoption Program (TAP). The new version introduces an advanced multitenant architecture, and uses a single code base to support on-premise deployments as well as software-as-a-service (SaaS) deployments through hosting partners and through the upcoming Microsoft Dynamics Live CRM service. … The “Titan” TAP program includes approximately 300 partners in the first quarter of 2007, and will include over 1,000 partners in the second quarter of the year. Partners in the “Titan” TAP program are building vertical applications, SaaS mash-ups, integration connectors and other solution extensions, as well as providing valuable feedback to Microsoft as part of the program. … The “Titan” release of Microsoft CRM and the new Microsoft Dynamics Live CRM service are targeted for mid-2007. The Microsoft Dynamics Live CRM service will initially be available in North America; plans for international expansion of the service will be announced at a later time. You may recall that Microsoft announced the hosted version of CRM last March for service provider partner use and then in July went into competition with them with its own Dynamics Live CRM hosting service. Not unexpectedly, the partners were cranky about that and also the early code quality. Filed under Beta and CTP, MBS, Dynamics, CRM, Microsoft, Live Dynamics CRM [...]

  4. Microsoft touts Dynamics at Convergence 2007 -- Microsoft News Tracker Says:

    [...] They also trotted out CEO Steve Ballmer to demonstrate the upcoming Microsoft Dynamics Live CRM service targeted at Oracle, SAP, and You may recall that it has a rather checkered history involving Microsoft competing with partners for the hosting business. [...]

  5. Microsoft reveals Dynamics Live CRM -- Microsoft News Tracker Says:

    [...] It also puts the partner-hosted version in the shade as we’ve mentioned previously. [...]

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