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.

About Author

Pradeep, a Computer Science & Engineering graduate.

  • pdouglas

    What MS is doing is simply bizarre. If you belong to a group, team, alliance, etc. you always give members of yor group preferential treatment. You do not treat them the same as everyone else, or outsiders. (Which is not to say you should treat others poorly.) Parents do not treat other kids the same way they treat their own; men / women do not behave the same with other women / men, as they do with their own spouses.

    Also what does it say about MS, when it is willing to undermine its own Windows OS, by giving away many of the things that differentiate it to competitors? What does it say about MS, when it is endeavoring to make its System Center support all OS platforms equally, where the company refuses to give an advantage to its own Windows and Windows Phone platforms? After a while, who is going to trust MS? What exactly would be the advantage of being a MS partner, when MS is willing to ruthlessly pursue all avenues that will make it a buck, regardless of the impact it will have on its partners, or even the various sections of the company? MS saying that it needs to be on all platforms with its services is of little consolation to its partners. That is kind like a man saying to his family, I need to spend time with these other families, lest I lose my popularity.

    MS read up on the prisoner’s dilemma. It is always to your advantage to look out for the interests of your group, and to provide advantages to members of your group, above others. If MS insists on going cross platform with its services, it cannot do it equally. It will have to provide decided advantages to its own ecosystem over others, or face the implosion of its own ecosystem.

    • http://www.rwalrond.com RWalrond

      Without Ballmer, Microsoft doesn’t seem to have the Balls to take care of their own first. Something is definitely different because as a long time Microsoft developer and supporter I’m also starting to feel frustrated.

      • pdouglas

        Microsoft is like a man with a family who says to them, “Look you guys, I met these beautiful women. I’m going to spend as much time with them as I spend with you. See … I’m open about my relationships. This makes it alright!”

        Then Microsoft walks around clueless as to why its partners are becoming so ticked off with the company.

  • Brent Russell Rucker

    Jeez, well said Ray Wang! If you have a customer who has already adopted SF, now the cost of integration went way down! Now think of SF as a “Data Point” that will readily be available across the MS stack.

    • pdouglas

      Right. So instead of MS products reinforcing one another, leading to organic long term gain (which is what virtually all companies do), they all dart off in their own directions for near term gain, leading to the strengthening of competitors, and to the overall detriment of MS and its partners in the long term. It is an utterly nearsighted view, and shows little strategic planning acumen by the company.

      • nickcraze

        You must be short sighted…. You fail to see the big picture here.
        But let me give you a clue here as it was stated in the article.

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

        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!”
        This is great news for the customer and great news for MS Dynamics itself.

        • pdouglas

          So one of part of MS strikes a deal which is to its advantage, but which is at the same time a significant competitive advantage to another part of MS, and you think that this is a great deal? This is a company that is in discord. This is a house that is divided. And this is anything but unusual. If one part of MS cannot rely on the rest of it to have its back, why should its partners?

          If MS really cared so much about its customers, why doesn’t it give away all its products for free, as that is something MS’ customers would really love? As I see it, the reason MS went into the deal with Salesforce.com, was to advance its cloud / services agenda, which appears to matter to the company more than anything else. Also it appears that MS is willing to risk its current various businesses and ecosystem, for the promulgation of its cloud first agenda, which apparently everyone but its own ecosystem want.

          Mind you I’m not saying MS’ cloud agenda has no value. I just believe MS’ priority should be the welfare and growth of its ecosystem – including its customers. Instead you see MS not only fraternizing with its competitors, but embracing them to the disadvantage of its own.

  • Brent Russell Rucker

    Glass half full?

  • Brent Russell Rucker

    Microsoft has varying degrees of Partners, and since last year’s WPC there has been a decrease in Managed Partners overall.