December 19, 2002

Microsoft CRM is delayed

My spin: Hmmm....maybe Microsoft read SalesLogix position and listened to others and decided to put this plate back in the microwave for a few more minutes (well until next year).

Microsoft said Wednesday that it plans to delay until next year the release of its new customer relationship management software, which it had slated for release by the end of the year.
The company is still testing the product and plans to ship version 1.0 early next year.

"We've ended up with a couple of small delays over time and now we're wading into the holiday," said Holly Holt, Microsoft's senior product manager for MSCRM. "But we are very close, we just need to get through the final testing."

Microsoft has also pushed out the release of the international version of MSCRM, Holt said. The company expects to ship that version by September 2003, rather than the previous goal of June.

Analyst weren't surprised by the delay. "This is a lot harder than you think," said Bruce Richardson, an analyst at technology research firm AMR Research. "There will be a lot of demand for this product, but it needs to be more than a generic sales force automation tool."

Microsoft needs "to think carefully about features and industry requirements. They may have been too optimistic (by aiming for a year-end release)," Richardson added.

Other analysts said initial test versions of MSCRM are missing key features that other CRM competitors offer, and that may be holding up the release. (full story)

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