Microsoft 'CRM Live' In The Works

Windows Live and Office Live

The latter is a hosted CRM offering in the planning stages in Redmond. If this is a separate code set for hosted CRM, it could explain on-the-record denials from a company exec that Microsoft CRM 3.0 aka Dynamics CRM will be hosted by partners only. Those denials came even as other Microsoft executives were on the road telling partners to expect a Microsoft-hosted CRM within a year. (At least for customers who request a Microsoft-hosted implementation.)

Talk about cognitive dissonance.

In any case, Microsoft insiders confirm privately that a group inside the company is working on a hosted product thus far dubbed 'CRM Live.'

As an aside, some Microsofties think the company would have been better off exploring a buyout of Salesforce.com over SAP.

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Salesforce.com, despite its Oraclean roots, would give Microsoft a true multi-tenancy CRM offering. SAP, on the other hand, would give Microsoft a bigger services group and all the channel conflict that comes with it. On the negative side, Salesforce.com's model ain't the most channel-friendly either.

The rationale behind a Microsoft-hosted choice? "I think Ballmer's sick and tired of Microsoft getting its butt kicked by Salesforce.com," said one longtime partner referring to Microsoft CEO Steve Ballmer.