EDS Becomes Enterprise Partner to Deliver Microsoft Dynamics CRM
15/03/2008
Microsoft and EDS announced that EDS was becoming an enterprise partner, offering consulting and solutions services around the Microsoft Dynamics CRM platform. The announcement builds on work that the two companies have done together at the UK's Departmen

OVUM. David Mitchell

Comment:

Enterprise scale CRM implementations were once the purview of companies like Seibel and SAP, together with the SaaS players like Salesforce.com, NetSuite and RightNow. In this landscape it would have been infeasible for a large system integrator like EDS to have considered Microsoft Dynamics CRM to be a viable solution for a client like the DWP. Obviously, times have changed.

As well as providing a horizontal CRM platform, Microsoft Dynamics CRM also acts as a development ecosystem, with industry specific and niche market flavours and extensions likely to emerge. While other providers such as Salesforce.com also offer ecosystems (Platform as a Service or PaaS, in the case of Salesforce.com) it is likely that Microsoft Dynamics CRM will develop increased traction during 2008 and 2009, with a strong usability, deep desktop integration and the market presence of Microsoft Windows and Microsoft Office being strong catalysts. Competition in the CRM market has started to intensify again, with a move from horizontal to vertical on the way.

We also anticipate more system integration and consulting firms starting to take the Microsoft Dynamics product range (not just CRM) much more seriously and to establish implementation practices for Dynamics that sit comfortably alongside their Oracle and SAP practices. We also expect more traction to be found in the SPLA (service provider licensing agreements) model - with these companies providing on-line services as well as their traditional on-premise software models. As well as looking to make money from implementation and other services, the system integration companies will also look to take the aforementioned industry versions and extensions to market, with the software model inherent in these offering asset-led growth opportunities.

Given the interest of the major Indian firms in non-linear growth they are obvious candidates for the next round of partnerships with Microsoft Dynamics.