Microsoft launches CRM Online

Microsoft's on-demand CRM application is now available, and the company is taking aim at

Microsoft today made available its on-demand CRM application.

Microsoft CRM Online, formerly Microsoft Dynamics CRM Live, is the company's own foray into on-demand or Software as a Service (SaaS) CRM. Microsoft had previously offered on-demand CRM through its partners, but this application will be housed and managed by Microsoft.

"Microsoft is investing more than $1 billion annually in data centers, and CRM Online is part of that," said Brad Wilson, general manager for Microsoft CRM. "We're trying to redefine the price-to-value equation for on-demand CRM."

More than 500 customers have taken part in the early-adopter program, Wilson said, with an average of 15 users each. Another 300 partners and 150 independent software vendors also participated in the beta program. The full application is now available, right on target with Microsoft's schedule.

"We had talked about the spring and Q2, but we were always gunning for April," Wilson said. "We're thrilled to announce its availability."

For more on Microsoft CRM Online

Learn how Microsoft's on-demand application is linked to CRM Dynamics 4.0

Get the latest Microsoft CRM news in our Special Report

See a demonstration of Microsoft CRM Online

Microsoft is encouraging customers to implement the application through partners, who say the new features in Dynamics 4.0, including CRM Online, will help them sell the application.

Microsoft CRM Online will be offered in two versions, Professional and Professional Plus. The Professional version offers 5 GB of storage with 100 custom workflows and 100 custom entities for a price of $44 per user per month. It will be available for $39 per user per month through the end of the year as part of a promotional offer. Professional Plus comes with 20 GB of storage, 200 custom workflows and 200 custom entities at a cost of $59 per user per month. That contrasts with, which charges $125 per user per month for its professional edition, Wilson said. ramped up its competition with Microsoft last week, partnering with Google to bring Google Apps to its CRM application. The move brought Google collaboration and productivity tools to a fully on-demand environment and serves as an alternative to Microsoft's Office.

"We've certainly been anticipating that for a long time," Wilson said of the relationship. "Our strategy from day one, five years ago, was to marry CRM with personal productivity applications. If anything, this validates our long-standing strategy."

Wilson also noted that Microsoft already offers integration between its CRM application and Outlook, its ubiquitous email application.

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