Avanade, Microsoft for the CRM SaaS Market
Microsoft has reportedly doubled down on the SaaS and managed hosting market with Avanade. This is the software giant’s joint consulting and integration venture in partnership with Accenture. The SaaS platform by Avanade is going to be called, Avanade Online Services and is initially focused on the Microsoft Dynamics CRM. The space already boasts of a number of players, which include Microsoft itself.
NaviSite, Agile Wave CRM and SherWeb are just a few of the many businesses that are hosting Dynamics CRM. Microsoft is also a key player with its own Business Productivity Online Suite. Will Avanade be able to put the squeeze on Dynamics CRM hosting or will there be other work enough to go around.
The market for CRM appears to grow significantly over the years. Gartner Inc, an independent research firm has listed CRM as one of the largest revenue producers for SaaS. The CRM niche has raked in $2.3 billion in 2009, a considerable increase from the recorded $1.9 billion back in 2008. Gartner also adds that SaaS comprised about 24 percent of the CRM sector’s total revenue for the previous year.
A lot of managed services providers have also ventured in SaaS CRM. About 19 percent of the 100 participants in the MSPmentor survey said that they already offer SaaS-oriented CRM to their clients. The complete results of the said survey are going to be distributed on February 10.
Many MSPs are also running proprietary CRM systems within the professional services automation software. Their CRM either runs on the premises or in the cloud by partnering with companies such as Autotask, Tigerpaw and ConnectWise.
Be that as it may, Avanade is still looking to differentiate its services. It cited the Avanade Productivity Platform as a packaged functionality for solutions based on CRM which include rules-based user interfaces, Microsoft SharePoint integration and field level security.