Microsoft Announces Launch of Microsoft Dynamics CRM Online Cloud Service Globally with CRM 2011 Release

Microsoft CEO Steve Ballmer today announced the global availability of Microsoft Dynamics CRM Online with the new Microsoft Dynamics CRM 2011 release, in 40 markets and 41 languages.  The on-premises and partner-hosted versions of Microsoft Dynamics CRM 2011 will be globally available on Feb. 28, 2011.

The beta release of Dynamics CRM 2011 has been available for some time and has been used by 11,500 customers and 2,000 partners, according to the company. Microsoft had previously told analysts they had over 5,000 customers on the CRM Online beta. With a first year discounted price of $34 per user per month for customers signing up before June 30, 2011. On demand CRM from competitors often runs in the $125 to $150 per user per month price range.  Microsoft has also announced an offer of up to $200 per user for companies that migrate away from Salesforce.com and Oracle, Microsoft has taken an aggressive stance on positioning Dynamics CRM Online.

While the competitive pricing may win some customers, Rebecca Wetteman, Vice President of Nucleus Research, has observed that price is only one factor. "This is clearly a penetration strategy, and the relatively low price point is going to make things very interesting," Wetteman said. "But we've found as CRM has matured it's not just about lowest price: different CRM offerings have different strengths and customers evaluate those strengths based on their own needs as well as price."

According to Microsoft's Bill Patterson, Director of Product Management for Dynamics CRM, one area of Dynamics CRM 2011 that will stand out from Salesforce.com is ...