Microsoft, a $ 1.63 trillion company, is gearing up to compete with Salesforce. The goal is clear, to make Salesforce lose its relevance and increase its market share.
Dynamics 365 wants to take the leadership of Salesforce
CNBC reports that Microsoft has informed its suppliers. For them to aggressively target their installed base of businesses to adopt their Dynamics Customer Relationship Management (CRM) software. Aims to maintain low revenue growth in the cloud. This means that Salesforce is your new target.
“I think what’s happened is it’s a new priority,” RBC’s Alex Zukin told CNBC in an interview Thursday. Microsoft has developed its offering and is ready to compete.
The sale will focus on Dynamics and PowerApps, and Zukin said senior management at Microsoft must approve any commercial license renewals that exclude Dynamics. This includes CRM and other business management software, as well as PowerApps, a tool that can be used to build applications. Microsoft had previously focused on Azure.
Although work is intensifying with its new fiscal year, Microsoft has already had some success with Dynamics 365, which grew 38% in Q2 2020, faster than other Microsoft products, probably generating over $ 1.8 billion. of dollars. in the last exercise.
However, Microsoft still has its work cut out for it. According to Marc Benioff, CEO of Salesforce, in 2019, Salesforce controlled 18.4% of the market in 2019, while Microsoft held 3.7%.
However, it is unclear how he has acted over the past year. And it remains to be seen how intense the competition will be between these traditionally somewhat hostile companies.
In the past, Microsoft has attempted to buy Salesforce and recently outbid it in a LinkedIn bidding war. The relationship between companies is complicated.
According to Zukin, Microsoft could gain market share from Salesforce just by buying the company, but it probably doesn’t want to attract regulatory scrutiny by then.