Feeds

Microsoft 'streamlines' ERP and CRM pricing

From each according to his own

The Essential Guide to IT Transformation

Microsoft is introducing per-user pricing for its business applications in an attempt to streamline licensing and reduce the cost of its CRM and ERP software.

On Tuesday, the company announced three new pricing bundles for its Dynamics range of software under the Business Ready Licensing Plan, which it claimed will be simpler for customers to understand and cheaper.

Microsoft will charge for the number of concurrent users with features bundled according to functionality, instead of charging for hundreds of modules and granules.

Features will be bundled under Microsoft Dynamics Business Essentials, Advanced Management, and Dynamics Advanced Management Enterprise with pricing starting at $2,250 for Dynamics Business Essentials.

Microsoft said the Business Ready Licensing Plan introduces more value to customers while streamlining its offerings. The change comes as business application providers increasingly charge customers using a monthly or annual per-user-based subscription.

Tuesday's change is Microsoft's latest attempt to harness the industry trend without actually fundamentally challenging its own revenue model by adopting pure subscriptions. Last December, Microsoft launched Dynamics CRM 3.0 starting at $440 per user and $528 per server for the year, excluding software upgrades. At the time, Microsoft business division president Jeff Raikes said the package mean Microsoft's CRM was "easy to use, adaptable and affordable".

However, Microsoft was still massively overpriced compared to the competition. Salesforce.com starts at $65 per-user, per month. It is unclear how Business Ready Licensing Plan pricing will prove materially beneficial to customers or whether it will just be simpler to manage. ®

The Essential Guide to IT Transformation

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.