Do Microsoft Dynamics CRM Buyers Choose On Premise or Cloud: What do the Stats Say?

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According to a recent report, Microsoft's Dynamics business is worth over a billion dollars. But how many of those Dynamics deployments are in the cloud and how many are on-premise?

Although Microsoft recognizes the benefits of the cloud and has even suggested that all Dynamics products will eventually have cloud versions, the majority of customers are still using the on-premise software, and that includes Microsoft Dynamics CRM customers. Dynamics CRM was the first Dynamics product that Microsoft offered as a cloud service and undoubtedly not the last, but most Dynamics CRM customers are still using on-premise solutions.

Nevertheless, all of that could soon change. According to Kirill Tatarinov, President of Microsoft Business Solutions, as much as 60 percent of new Dynamics CRM customers are opting for the cloud-based version. The customer base for Dynamics CRM is growing so fast that it has seen 31 quarters of double-digit growth.

What does this mean for companies looking to dive into CRM? The cloud is clearly the future when it comes to effective CRM deployments, but there are still some companies that may prefer and benefit from on-premise implementations. Furthermore, many of those companies still using on-premise solutions will likely not move to the cloud any time soon. Thus, Microsoft's strategy of continue to offer both options, in contrast with those companies that only offer one or the other, puts it ahead of the competition and guarantees  continued growth in the CRM market.

By PDG Consultants,  Microsoft Dynamics CRM Partner in New Jersey

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