Report: Microsoft Dynamics Partners Frustrated By Microsoft’s Partnership With Salesforce

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Last week, Microsoft announced their partnership with Salesforce.com in which Salesforce can be now integrated with Office 365 and you can host Salesforce apps on Azure. Even though it is a win-win situation, Microsoft Dynamics partners are not so happy about this deal. Microsoft Dynamics is the competing CRM product against Salesforce and it has lost one of the main advantages of having an easy integration with Office 365. Since both Dynamics and Salesforce has Office 365 now, Dynamics partners will have hard time convincing their customers.

According to R “Ray” Wang, principle analyst at Constellation Research, after the deal was announced dozens of Microsoft partners he advises expressed displease with the news. “They were pissed!” Wang said.

But analyst claims that Dynamics will still be the best choice for Microsoft shops,

Are there concerns justified? Yes and no, Wang says. The reality is Dynamics and Salesforce are the two big CRM platforms in the market, and they each have pros and cons. Salesforce is an all cloud-based CRM. Microsoft supports hybrid deployments that can run in customers’ premises. Even with the increased fidelity between Salesforce and Office 365, Dynamics is still likely the best choice for IT shops heavily invested in other Microsoft products.

Dynamics isn’t going away, Wang says, so the partners, and end user customers don’t have to worry about that. “They’re just unhappy with the fact that they were caught totally off guard,” Wang says about the news of the partnership. To add to the frustration, it has happened in the last months of the last quarter for many of these partners’ fiscal year. Not all Microsoft partners took it so hard.

Kirill Tatarinov, who heads the Dynamics business at Microsoft said the following regarding Salesforce deal,

Does this mean we will stop competing?   No.  We will continue to partner and we will continue to compete in critical areas like CRM.  Amazing things are happening in the CRM space and it is through competition that great innovation comes.  Salesforce is acknowledged for their leadership in shaping this industry by delivering applications in the cloud. Microsoft Dynamics CRM is one of the fastest growing products at Microsoft and shows no signs of slowing down as we continue to innovate and make progress.  Our unique ability to deliver agile, simple to use, end-to-end solutions that take advantage of all Microsoft technologies puts us on the precipice of tremendous opportunity to impact businesses and organizations throughout the world.  And we are excited about the new features and capabilities we are delivering next week with our spring CRM updates .

But today is not about our competition.  It is about partnering with others in the industry and giving customers solutions that best meet their business needs – in the end, our customers are the real winners through greater innovation, greater integration and continued competition that brings out the best in all of us.   Today is a great day and we can’t wait for tomorrow!

Read more at Network World.

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