Microsoft Announces Pricing for Microsoft Dynamics CRM Online Fall ‘13

In a surprising move, Microsoft has abandoned the one-price-fits-all strategy for Microsoft Dynamics CRM Online that it has embraced since the service debuted in 2008. Gone is the simple $44 per user, per month rate. In its place is a three-tiered pricing strategy designed to give CRM users more options and make Dynamics CRM Online more flexible. Microsoft will offer the three new licenses (at $15, $30, and $65 price points) beginning around October 2013 with the rollout of Microsoft Dynamics CRM Online Fall ’13.

The new pricing structure is part of a major redesign of the Microsoft Dynamics CRM product line for 2013. Previously codenamed “Orion” (now deprecated), the official product names are “Microsoft Dynamics CRM Online Fall ’13” for the online version hosted by Microsoft, and “Microsoft Dynamics CRM 2013” for the on-premises and partner-hosted versions. This redesign includes a shift to a “result-driven user interface,” as well as MarketingPilot integration, Yammer integration, and Netbreeze integration. Crucially, the 2013 release will also feature vastly improved mobile CRM functionality at no additional cost!

Here is how Microsoft describes the three licenses that it is introducing in the fall:

Professional ($65*) For the core CRM users, who need the full capabilities of Microsoft Dynamics CRM including sales force automation as well as marketing and customer care. We believe most users will find this license best fits their needs.

Basic ($30*) For sales, service and marketing users who need to manage accounts, contacts, leads, cases and access custom applications as well as for business analysts who require reporting capabilities.

Essential ($15*) For light-weight users who need to access custom applications developed in house or by our vast network of partners.

(*) CRM Online list price shown per user per month in USD, actual pricing might vary by geography. Other fees may apply for add-on services such as additional storage, testing and production instances. Prices are exclusive of any fees you may incur to procure Internet connectivity.

Source: http://community.dynamics.com/crm/b/crmconnection/archive/2013/07/08/introducing-a-more-flexible-and-personal-way-to-buy-microsoft-dynamics-crm-online.aspx#.Udr6mzvqlrU

The game plan that Microsoft is employing appears to be to match the feature set of Salesforce.com while also providing outstanding value. It is clear that Microsoft intends for the Professional license ($65) to go toe-to-toe with Salesforce.com Sales Cloud and Marketing Cloud. The Basic license ($30), meanwhile, provides the core features of a modern CRM system. You are essentially getting everything that the current Dynamics CRM Online provides, for $14 less per month (CRM Online is currently $44). Finally, the Essential license ($15) provides a lightweight license to leverage as a platform for custom line-of-business applications. Microsoft has stated that companies can mix and match the three license types within the same organization, providing a lot of flexibility and value.

At xRM, we are looking forward to the upcoming release of Dynamics CRM, and we think that the new pricing licensing options should benefit many businesses.

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