Microsoft is expanding the scope of Dynamics CRM in the second quarter of 2014, and with those updates come new pricing guidelines. The newest changes, as explained by Dynamics pricing and licensing chief Paco Contreras, will add a new Enterprise user level for Dynamics CRM Online that will account for the new capabilities of both Microsoft Dynamics Marketing and Unified Service Desk.
Microsoft has made the licensing changes to start addressing the changing product roster under Dynamics CRM, including the long-awaited rollout of new MarketingPilot capabilities via Microsoft Dynamics Marketing, Social Listening (formerly NetBreeze), as well as the customer self-service and knowledge management acquisition, Parature.
The Dynamics CRM Online Enterprise license will cost $200 per use per month (though costs may vary by geography). For a limited time, customers in the United States and Canada who purchase at least 10 seats of the Microsoft Dynamics CRM Online Enterprise SKU through their Enterprise Agreement will receive an equal number of Parature seats at no additional license cost.
The Microsoft Dynamics CRM Professional license level for CRM Online, with a price point of $65 per user per month, will now include Social Listening at no additional charge.
“The value of Microsoft Dynamics CRM Online Professional significantly increases with this release,” writes Contreras. “Customers with ten or more Microsoft Dynamics CRM Online Professional licensed users will get access to vast social listening and analytics capabilities that Microsoft Social Listening lights up.”
On-premises customers may add access to Microsoft Social Listening to licensed users of CRM Professional CALs for an incremental fee of $20 per user per month.
Bringing in a new upper tier of licensing for CRM Online is a sensible move in the current CRM marketplace, says analyst Esteban Kolsky.
“To me it’s more competitive with the rest of the field. It has forced changes in messaging, prices, and positioning. The rest of the field, that’s the way they price, with varying price levels.,” says Kolsky.” It’s a better approach to have than to go piece by piece. In competitive deals they’ve had competitors telling buyers that with Microsoft you have to buy piecemeal and this is a way to cover one price for everything, but saying that as they add functionality, they’ll keep changing prices to adjust to what customers are buying.”
But Kolsky adds that for many Microsoft customers, CRM Online pricing is still going to be just one factor in a larger deal, and these numbers are often negotiated heavily. “Pricing with Microsoft is never an issue. They’re one of the most flexible vendors. Dynamics CRM is often part of a bigger picture with development partners, laptops, phones, and whatnot. So in the context of everything else, [pricing] is a more interesting concept than just selling seats piece by piece.”
Dynamics Marketing: From small to large marketing teams
Microsoft will be positioning Dynamics Marketing for users in a broad range of marketing departments by giving the ability to lock down the subsets of features. For example, some marketers may only want to manage email and social campaigns while other orgnaizations could open up a full scale integrated marketing management process to track budgets and investment across the full range of marketing investments.
“[Dynamics Marketing] can scale from small to medium to large,” explained Dynamics CRM general manager Jujhar Singh. “On the issue of simplicity, different organizations have different needs. We try to direct the product at different roles.” Singh sees customers as small as 5 marketers adopting Dynamics Marketing, with the ability to handle very large teams as well. Singh explained that Windows marketing team of over 200 people used Dynamics Marketing to launch Windows 8.1.
Kolsky says this approach to offering Dynamics Marketing, while in its earliest days, is the right move in the enterprise cloud software business. “It reflects, more than anything, the cloud computing approach to the world where you can turn on and turn off components and interfaces.,” he says. “I think they are taking the right step, but it will still take a long time to get where they are going.”
By Jason Gumpert, Editor. Published March 5, 2014
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