Update: Microsoft Upgrades CRM With 2003 Server Support, Performance Tweaks

Salesforce.com, NetSuite and Microsoft all unveiled new versions of their CRM software on Monday.

Chief among Microsoft CRM 1.2's perks are improved performance, especially in the Outlook mode, and support for Windows Server 2003, Exchange Server 2003, and Small Business Server 2003, said Ryan Toenies, director of business solutions for Inetium, a Chanhassen, Minn.-based Microsoft partner. The point upgrade is available now in North America and will debut worldwide in January, the company said.

Also on tap will be an "aggressive" price promotion of this version of CRM and Small Business Server itself, to make it cheaper and easier for small companies to get into the products. The promotion is expected to cover installations of up to five CRM seats. A Microsoft spokesman said the company will be talking more about the promotion in January and would not comment further. Last October, company executives pledged to get aggressive on this front. (See story.) In addition, several partners expect Dell, which already preloads SBS on some servers to add Microsoft CRM to that equation.

"Anything that lowers the barrier to entry is fine with us," said Andy Vabulas, CEO of I.B.I.S., a Norcross, Ga., Microsoft solution provider.

With this release of the product, Microsoft CRM will be available through the full, volume channel, news which caused a stir last summer when Microsoft Business Solutions partners were informed of it.

The initial Microsoft CRM release was only available through Microsoft Business Solutions partners, a relatively small subset of the Microsoft channel. The news that CRM 1.2 would be available through volume licensing plans sparked fears that Microsoft would do the same channel switch with the rest of the MBS accounting, finance and ERP portfolio. Thus far, Microsoft executives have only said there are no current plans to move these products through the broad channel. They did not rule out such a move in the future, however.

Microsoft has said that by putting CRM through broader distribution it will create a bigger pie for everyone. It is also encouraging solution providers to rely more on higher-margin services revenue than on product sales margins. Many partners understand the argument, but also relied on up-front money from product sales to sustain their businesses. Now they typically will have to wait 90 days for payment on product sales they refer.

For more on Microsoft's evolving channel changes see story. Microsoft's revamped partner program is open for enrollment starting December 9. Partners always traditionally had to re-enroll at this time of year and are grandfathered into the "Next Generation Partner Program" for one year.

For the other CRM news, see Salesforce.com and NetSuite stories.