This document discusses the competitive forces at play in the Microsoft Dynamics CRM services market. Practice leaders and strategists within service providers should use this research to develop strategies to increase revenue and market share from Dynamics CRM services.

Overview

Key Findings

  • Large Microsoft Dynamics CRM deals involving 2,000 or more users across multiple sites and countries are becoming more common, demonstrating that in the enterprise market, Dynamics CRM is gaining significant momentum as an alternative in CRM product selection. For the profiled companies in this report, the expected average revenue growth from Dynamics CRM-related services is 33%.
  • While there are more than 650,000 Microsoft partners worldwide, relatively few have made strategic investments to develop services for Microsoft Dynamics CRM. This would translate into opportunities for service providers to develop horizontal or industry-specific solutions to increase visibility and differentiate in the Dynamics CRM services market.
  • Gartner groups Microsoft Dynamics CRM service providers into these categories: Microsoft Services, Avanade, global system integrators (SIs), global Dynamics CRM technology integrators, regional SIs, and local resellers and SIs.

Recommendations

CRM practice leaders and strategists within application service providers should:

  • Target customers that have invested in other Microsoft technologies as these can be integrated relatively easily with the Microsoft Dynamics CRM product, and IT buyers will favor providers that can address and integrate the full set of Microsoft technologies.
  • Aggressively grow the Microsoft CRM practice and incorporate cloud computing, social CRM, digital media, mobility and business consulting, or form partnerships with specialist vendors. Service providers that focus solely on traditional on-premises CRM implementations will gradually lose market share in the next one to two years.
  • Partner with Microsoft for technology insight and certifications that can be used to generate potentially market differentiating services, and also to market credibility through depth of solution and scale of certified consultants.

Read more: Gartner.com