What Microsoft Dynamics 365 means for CRM pricing and competition

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Microsoft Dynamics 365 provides a lot of insight into where Microsoft has been, as well as where it is going with both its ERP and CRM lines. A single business platform and common data model that simplifies IT and application integration has been a decades-old vision of Microsoft’s, and has come to fruition with the release of Microsoft Dynamics 365, which was made available for customers worldwide on November 1, 2016.

To learn how cloud solutions like Microsoft Dynamics 365 helps businesses grow efficiently, download the free white paper, "Four Technology Trends Helping SMBs Thrive in a Digital World".

Microsoft acquired LinkedIn in part to support Microsoft Dynamics 365

Earlier in 2016, Microsoft acquired LinkedIn for over $26 billion, by its largest acquisition ever. By taking control of the world’s preeminent “professional network,” Microsoft opened up new paths for locating and cultivating leads. The vast social media reach of Linkedin – it had 400 million users in 2015, according to VentureBeat – is a potent source of customer contacts. LinkedIn data has even been called the lifeblood of salespeople, who use it to build their networks and complement their usage of CRM platforms including Dynamics CRM and Salesforce.

Microsoft Dynamics 365 will launch a price war against top CRM competitors

In the early 2000s, Salesforce was synonymous with CRM for many firms, but it has many shortcomings, not the least of which is its price. Salesforce licensing can run up to $300 per user per month. In September 2016, Microsoft chief legal officer Brad Smith explained in an emailed statement to Business Insider that Microsoft is looking to bring price competition to the CRM market, namely through the new pricing model of Microsoft Dynamics 365.

Microsoft Dynamics 365 will undercut Salesforce on price, while offering users Financials and the purpose-built components they need as they grow.

CRM bundled with ERP in Microsoft Dynamics 365 can dramatically reduce costs

Microsoft is bundling subscriptions for CRM and ERP (Dynamics AX) in the Enterprise Edition of Microsoft Dynamics 365, while the Business Edition will bundle CRM and Financials. This could result in substantial savings compared to Salesforce, which offers only CRM-related components. At the same time, it makes it easier for departments such as customer service to conduct business processes with data across field service and sales, and vice-versa.

“With traditional app-based subscriptions this would require three separate subscriptions for each customer service representative; however, using our new plans customers get one holistic subscription to have all the information at their fingertips, and customers could save four to five times the cost of traditional CRM providers,” explained Microsoft vice president Takeshi Numoto in a blog post.

As you consider your options for Microsoft Dynamics 365, we can help with any questions you may have. As a Microsoft Cloud Solution Provider, we offer the complete resources to help you evaluate the right technology for your business.

Learn more about Microsoft Dynamics 365




By Turnkey Technologies, Inc. - A national, award-winning Microsoft Dynamics CRM and ERP Partner based in St. Louis, Missouri.

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