With Microsoft’s Parature acquisition, Dynamics CRM modernizes its customer service story

Microsoft announced today that it has a definitive agreement to acquire cloud-based customer engagement software company Parature. News of the acquisition started emerging yesterday.

Noting the strength of Parature's multi-channel customer service capabilities, Dynamics CRM corporate vice president Bob Stutz wrote today that it is "a perfect complement to the existing Microsoft Dynamics CRM customer care offering as well as some exciting things we have planned for our next release." Stutz also characterized the company as "philosophically aligned" with the Dynamics CRM team, with an approach that "perfectly pairs with our desire to create software solutions that people love to use."

Microsoft did not reveal the terms of the agreement. Parature is a venture-funded business, taking two major rounds of funding in 2006 and 2008 that totaled over $31 million. An unconfirmed report put the sale to Microsoft at $100 million.

A ‘great' move for Dynamics CRM

Parature may not be a well-known player in the Dynamics CRM space now, but CRM analyst Paul Greenberg sees the acquisition as a great move for Dynamics CRM.

"This is the biggest and best acquisition [the Dynamics CRM team] has ever done," Greenberg says. He credits Bob Stutz with executing the changes that have shaped the well-received CRM 2013 release, as well as this acquisition and the earlier deals for Marketing Pilot and NetBreeze.

While those earlier deals were good, this one is better, Greenberg believes. "Microsoft made a smart decision and they will get a lot that they don't have," in ...