Microsoft's CRM Battle with Salesforce.com and Oracle Heats Up with Free Offer

Microsoft is turning up the competitive heat on its two chief competitors offering online CRM packages by offering free Micorosft  Dynamics CRM Online for up to seven months.

Microsoft Dynamics is offering customers of Oracle and Salesforce.com access to Dynamics CRM Online if they turn off their existing services and turn on Microsoft's remote offering.

The seven months is based on Microsoft's standing offer of free service for 30 days, plus a new offer, good through the end of this year,  of service for six months.

The  offer's value isn't insignificant.  For a company with 25 users, it could be worth more than $6,000. And to encourage companies to sign up lots of users, the offer is good for up to two times the number of users currently using the Oracle or Salesforce products.

However, companies that take advantage of the offer must commit  to a 12-month contract, so they must pay for at least another six months.

The offer of a free initial subscription is a classic marketing tactic for a so-called "annuity" product-a product that users essentially rent...