Thursday, September 15, 2016

Early analysis of Microsoft's Dynamics 365 Strategy

Earlier today we have reported the leaked pricing details of Dynamics 365. And sites like pcworld reported this is little expensive when buying individual components. And we think this is the right strategy. And is similar to Office 365 strategy. have you ever checked the price of Sharepoint Online individually? it is not cheap at all. But when you buy as a bundle along with Email, Skype and Office Sharepoint is much cheaper. So customers will stick to this bundles and it will become  the key differentiation from  its competitors.

Lets take the Business edition which Microsoft sells for $50 which include financials sales and marketing. You can't even imagine a decent CRM and financial solution for $50. But Microsoft have a massive Sales team to sell this worldwide and they have cloud data centers in 34 regions. if they could able to grab a  2 million paying users, this  will become a 1 billion annual business for Microsoft. Understand the potential  for this is much high. And if that happens Microsoft again will add missing components like Customer Service , HR to this edition and will introduce a plan 2 which may cost little higher (say $75). And the revenue potential will again increase. Unlike Salesforce Microsoft will give the option to develop industry solutions to its partners which will make it as platform with a lot of talented professionals. That is the strategy.Will it work out? we have to wait and see.

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