VARs mixed on Microsoft CRM

Worries over missing features, complexity and vague channel strategy

Microsoft's long-awaited move into customer relationship management (CRM) in the US last week has received a mixed reaction from the UK channel.

The Microsoft CRM package is slated to be available in the UK in the second half of this year. However, fears surrounding missing features, complexity and a vague channel strategy could cause problems, sources told CRN.

No decisions have yet been made about how to manage the product in the UK, although it is understood that Microsoft will distribute the Standard edition of CRM through its Small Business Solutions unit, providing a huge reseller opportunity.

Simon Edwards, head of Microsoft Business Solutions in the UK, said: "They [resellers] have the expertise. The lead will come from them and we will support them with new technology."

Originally, the software was to have been distributed through a small channel of CRM-certified partners.

However, David Rankin, managing director at Tenon Group, said the proliferation of resellers is bad for business because it is likely to mean a dilution of resources.

"It takes time to develop expertise in these products and small resellers are unlikely to be in a position to devote that time when a product is under review and the market remains difficult," he said.

Alex Kaye, managing director of reseller AK Marketing, said: "Microsoft has a huge brand awareness among end users, who see other CRM vendors as more specialist. A lot of resellers will also be able to latch on to the integration possibilities with their own packages."

Clive Longbottom, at analyst Quocirca, agreed that it will provide a huge services opportunity. "CRM is not a technology problem, it's a corporate processes problem," he said. "It needs consultancy."

Microsoft CRM is available in Standard and Professional editions, and is targeted at organisations or departments with up to 500 users.