Microsoft CRM moves under the microscope
Published: 17 Apr 2002 12:01 BST
Skeptics claim Microsoft has a history of initially entering a market with less-than-ambitious aims only to slowly gather steam and an ever-larger presence over time.
Former Novell CEO Ray Noorda, for example, complained constantly about Microsoft's server-based operating system efforts and related applications strategy. Now Novell has been rendered an afterthought while Microsoft's Windows 2000 Server operating system continues to gain market share.
By adding features to existing products, Microsoft has also altered large swaths of the market, such as when it introduced an online analytical processing (OLAP) server to its server-based software, cutting out various OLAP niche players.
But CRM may be different. Given the complex nature of the systems and the highly involved nature of the consulting services necessary to implement a large-scale system, some doubt Microsoft will be able to crack the territory now dominated by Siebel, SAP and Oracle.
Microsoft's "genetic makeup is set up to sell to a large number of customers," said Dwight Davis, analyst with technology consultants Summit Strategies.
At the same time, Davis said, the difference between Microsoft's initial CRM package for small businesses and those of its larger competitors will likely be "fleeting."
Some CRM customers are skeptical as well. "Our strategy for the foreseeable future is to use integrated" systems, said Gary Hensley, director of information technology for organic fruit juice maker Odwalla. "It would be challenging for a new entrant to gain market share in the large systems market."
"Acquiring or helping to promote a company that's used to handling small businesses and trying to scale that up to say, 'Look, we're running Chevron' seems like a bit of a stretch," added Hensley, whose company uses Oracle business software.
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