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Microsoft vs. Salesforce – There is a new leader

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Microsoft vs. Salesforce

A new leader has emerged for 2017

In the Microsoft vs Salesforce war, there is a new leader. I have been in the Microsoft Dynamics CRM/365 space for over 14 years. Ever since I can remember Salesforce led most analysts’ reports on CRM/Sales Force Automation. There are a few key reasons why:

  1. Salesforce.com was launched in 1999, Microsoft released Dynamics CRM in 2003. This allowed them to build market share and product maturity which Microsoft has struggled with ever since.
  2. Early versions of Microsoft CRM were clunky, difficult to use and lacked key functionality. The user interface was challenging in versions 1.2, 3, 4 and 2011, it was finally overhauled in version 2013.
  3. Salesforce built Force.com, a platform as a service that allows developers to develop add-on applications that integrate with Salesforce.com. In 2013 Force.com had 1.4 million registered developers and a full library of add-on solutions. Microsoft has struggled to compete with Force.com.
  4. Salesforce launched AppExchange in 2005 which is an application marketplace for 3rd-party applications that run on the Force.com platform. AppExchange has over 3000 applications and has had over 2.8 million installations of apps.
  5. Market Share – Salesforce.com has been the clear leader in market share (somewhere around 45% vs Microsoft’s 10% (Source: 2016 CRM Market Share report by CRMsearch).

Free Demonstration of Dynamics 365 - See why Microsoft is leading the market

About a year ago I mistakenly ended up sitting in the private analyst seating area at a very large Microsoft conference. I heard some talk about “leap frogging” and had a conversation with two industry analysts. They predicted that Microsoft would leapfrog Salesforce.com within a year. They felt that the pace of innovation on the Dynamics 365 platform and Microsoft’s faster machine learning and artificial intelligence go-to-market would propel them to the lead spot. They were spot on as Forrester names Microsoft the leader in Sales Force Automation (July 2017).

Visit our blog for the full article and the reasons Microsoft is propelling in the market.

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