Core grabs Excitation amid Microsoft CRM skills stampede

Microsoft's decision to 'mainstream' CRM prompts yet another union between Microsoft online services partner and CRM specialist

The mad scramble among Microsoft partners to buy their way into the vendor's new favourite technology area - CRM - continued this morning with news of yet another acquisition.

Microsoft online services specialist Core announced this morning it has splashed £1m on Microsoft CRM consultancy Excitation.

Acquisitive Core had been hunting targets in the Microsoft CRM space since the vendor announced at its Worldwide Partner Conference in July that it is "mainstreaming" CRM in eight countries, including the UK.

"This means every Microsoft account manager will carry a CRM target," explained Core chief executive Conor Callanan (pictured below), who said he understood the vendor is aiming to treble its CRM revenues over the next three years.

The union is not the first - and surely won't be the last - example of top Microsoft partners acquiring their way into the CRM market. In December, Chess snapped up Microsoft Gold partner The CRM Business, ahead of Consult CRM's acquisition by Advanced Computer Software this April.

Other Office 365 specialists such as Lanway are forming strategic alliances to bridge the gap.

Core made two acquisitions last year and Callanan said dipping into its M&A war chest once again was the only way to develop a CRM practice at speed.

"Doing it organically would have taken too long," he said. "If you build a team, you have to build up clients and references. Excitation also had some IP [intellectual property] - they have an add-on for CRM for charities and trade associations."

The acquisition of 14-man Excitation adds to Core's existing prowess around SharePoint, System Center, Exchange, Identity and Access and Microsoft's Online Services offerings: Windows Azure, Office 365, Windows Intune.

Excitation chief executive Mark Dendy and head CRM architect David Jennaway - the latter of whom Core claimed is the UK's longest-standing CRM "MVP" - are both staying on as part of the deal.

Core is not ruling out further acquisitions as it chases a 2016 revenue goal of £12m to £16m, Callanan said.

Andrew Henderson, managing director of Lanway said further consolidation among Microsoft partners is inevitable following the vendor's decision to harmonise Dynamics CRM into its Online Services team.

"In Office 365, there are SKUs that include Microsoft Dynamics CRM and Power BI for a little over £50. That represents a 40 per cent saving," he said.

"This acquisition is not a surprise at all."