Leveraging CRM as a Platform to Grow Your Business
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Transcript of Leveraging CRM as a Platform to Grow Your Business
Leveraging CRM as a Platform to Grow Your
BusinessFrank Falcone
Senior Product ManagerMicrosoft Dynamics CRM
Truly a ‘Software+Services’ Opportunity - CDN
On-Premise 5 year CAGR = -2.0%SaaS 5 year CAGR = 56.0%
Projected CRM Spending in Canada (Millions)
(SaaS vs. On-Premise CRM Growth) CRM ‘Software as a Service’ continues to gain momentum in Canada and is projected to grow from $13M in 2006 to over $100 M by 2011, a 5-year (‘06-’11) CAGR of 56%. IDC expects that by 2010, over half of all CRM spend will come from SaaS CRM.
Truly a ‘Software+Services’ Opportunity - US
2007 2008 2009 2010$0$5
$10$15$20$25$30$35$40
$7.2 $8.0 $8.8 $9.7
$28.3 $31.0 $33.8 $36.8
CRM Software CRM Services
**Bi
llion
s of
US$
Sources: *Gartner Dataquest 2006, **Forrester Research, 2007
SaaS CRM revenue projected to grow to
22% of total CRM software revenue by
2010*
What this means for you…
• The market is shifting- From large-scale implementations to agile solutions that
drive immediate benefit
• S+S is a catalyst for change- Perception for buyers is that S+S is more affordable with
less risk
• “Choice” is the best strategy for long-term success- On premise, partner hosted, or Microsoft hosted
PARTNER BUSINESS MODELIndependent Software Vendor
Microsoft Partner Business Models• VARs add value to
hardware and software products by providing consulting, customization, development, integration and support services.
Value-Added Reseller
• SIs create customized solutions by integrating disparate systems and technologies. SIs typically have functional and domain expertise.
SystemIntegrator
• ISVs develop unique intellectual property that they package in a custom application and repeatedly sell to specific industry verticals or customers.
Independent Software Vendor
• Service Providers offer infrastructure and/or application hosting and other services to customers.
ServiceProvider
• System Builders specialize in assembling complete computer systems based on components from multiple vendors.
SystemBuilder
• Small Business Specialists have expertise in marketing, selling, planning and implementing solutions for small businesses.
Small Business Specialist
ISV – Example• James founded a 25 person software development shop about 7
years ago, based in Calgary, Canada, servicing enterprise and mid-market companies in the oil & gas industry. The company recently released a front-office solution based on Microsoft Dynamics CRM.
• Partner Level: Certified• Number of CRM Customers: 48• CRM Experience: Developing competency• Core Strengths: .Net development, oil & gas, back-office systems • Focus: Mid-market, enterprise, oil & gas
Amount (USD)
Oil and Gas Solution - 25 seats $55,000*ISV Royalty Fees ($10,500)
Software maintenance & support
$11,000*
Implementation and training(100 hrs)
$20,000*
TOTAL: $86,000
Seats: 25Time To Implement: 1 month
Why James likes to work with Microsoft CRM:Great revenue and margin opportunities
– Attractive royalty schedule based on volumeSolid product
– Rich platform, takes advantage of .Net, Office Client and Server, SQL for reporting, and business intelligence
– Ease of development (Visual Studio, .Net, Workflow) – Flexibility of deployment (on-premise and hosted)
Great support – Training, certifications
*88% of revenue flows directly to ISV
PARTNER BUSINESS MODELService Provider
Service Provider – Example• Claus works for a 250 person infrastructure and application
hosting company based in Denmark. His company hosts and manages email and business applications on behalf of companies based in Denmark, UK and the Netherlands. He partners with SIs for the consulting and customization work, as well as ISVs.
• Partner Level: Gold Certified• Number of Customers: 1,500+• CRM Experience: 4 years• Core Strengths: Infrastructure and application hosting, hosted
Microsoft Exchange, Microsoft SharePoint and Microsoft Dynamics CRM
• Focus: Mid-market, manufacturing, financial services
AmountPrivate Label – 50 seats@€68 per seat, per month, 24 months contract
€81,864
Hosting Fees €42,978*
Microsoft SPLA Fees (€24,559)
Implementation and training by CRM Partner (200 hrs)
€27,288
TOTAL: €109,152Why Claus likes to work with Microsoft CRM:Great revenue opportunities
– Recurring fees from customers/private-label partners
Solid product– Built on Microsoft stack with multi-tenant capabilities– Common application platform for ISV solutions– Integration with SharePoint, Exchange
Great support – Large partner ecosystem, hosting documentation and tools
** In this example, CRM Partner sourced the deal, owns the customer and invoices them. CRM Partner pays the Service Provider a recurring monthly fee for hosting services.
Currency conversion rate of .6822 used on invoice example.
Seats: 50Time to implement: 30 daysPrivate Label Model**
Seats: 50Time to implement: 30 days
AmountHosted CRM – 50 seats@€68 per seat, per month, 24 months contract
€81,864*
Platinum support – 20 seats@€10 per seat, per month, 24 month
contract
€4,800*
Microsoft SPLA Fees (€24,559)
TOTAL: €86,664
Direct Model
*53% of hosting revenue flows to SP
*72% of hosting revenue flows to SP
Rapid implementation
Anywhere-access
Low, per user monthly fee
CRM Online
Control & ownership
Technology investments
Advanced integration
On-PremisePartnerHosted
Outsourced IT
Industry / Vertical configuration
Packaged solutions
The Power of Choice
Choose how you use itOutlook, browser, mobileChoose how you get itSoftware or serviceChoose how you buy itOwn it, rent it
Dynamics CRM: The Power of Choice
On-premise
CRM Onlin
e
Partner Hosted
Single code-baseacross all offerings!
CHANGE YOUR MIND AT ANY
TIME !
Microsoft Dynamics CRM Online
5 – 25 users 26 – 150 users 151 – 250 users
NO-IT Organizations
Workgroups
Departments
Small Businesses
Resource Constrained IT
Departments
Divisions
Mid-market Organizations
Resource Constrained IT
Departments
Divisions
Enterprise S+S Pioneers
Pilots
“Perfect Fit” “Great Fit” “Good Fit”
The Partner Opportunity
• Be part of the transition from on-site to S+S– Sell and service Microsoft CRM on-site while you
learn the new market for CRM Online• Diversify Revenue Sources– Microsoft Services Annuity– Partner Services – Standard license margin for on-premise
The Partner Financial ModelAnnuity-based model for partners• Partners will receive recurring annual
compensation for customers that they deploy on the Live CRM platform
• Partners will receive 10% of the service revenue for each user, with a special rate of 15% per user in 2008
• Payments will be made in advance on the first year of 12 & 24 month contracts
• In addition, partners can also receive standard software margin if the customer chooses to move on-premise
Innovation, Investment & Partners
Microsoft Dynamics:• 291,000+ customers• 10,000+ partner ecosystem• Footprints in 132+ countries• 20+ years experience
Microsoft:• Three Aligned Business Units• Delivering Integrated Innovation• 57,000 Employees• 27,000 designers and developers• $7.6B in R&D• History of Pioneering Software Innovation
Microsoft Data Center
30 Day Free Trial of CRM Online
https://offers.crmlive.com/canadapromo
DEMOThe Power & Flexibility of
the Dynamics CRM Platform
Thank you!