Microsoft's Reseller Partner Channel

Microsoft is now putting a new channel management team in place, financial incentives to stimulate partner satisfaction, and strong mechanisms to protect partner interests as the company continues its transition to the .NET Web services platform.

The firm is using partner conferences to unveil $500 million in channel programs, including the hiring of hundreds of additional partner account managers, as well as financial incentives to motivate employees to bring partners into small to medium-sized enterprise (SME) and enterprise projects.

Microsoft's product development groups will tailor software to specific customers and the partners that serve them. One example of this is the Small Business Server .NET product, which incorporates features to help resellers deploy the software out of the box for SMEs.

Microsoft built CRM on the Microsoft .NET foundation to open opportunities for Internet service vendors and partners to extend their systems by using Web services. Microsoft CRM is the first Microsoft business application built on .NET that facilitates the easy connection of systems and enhances solutions with external Web services such as credit checking, analytics, and marketing automation services that extend the core functionality of Microsoft CRM.

According to Joe Outlaw, research director at Gartner Inc., “Gartner Dataquest estimates the respective penetration rates of CRM solutions by small business and medium-sized business are 2 percent to 3 percent and about 20 percent, respectively. These markets are at early stages of adoption with large opportunities for CRM vendors that approach the markets with the right products and messages. SMEs don't want large-enterprise solutions at discount prices or with minor modifications, such as a few features turned off. SMEs want products and services designed, priced and delivered from vendors that understand their needs and are committed to meeting them.”

What all this means to the small businessperson using Microsoft CRM is better software delivered faster. Vendor competition for the opportunities in this market means that the quality and maturity of the CRM suites available to SMEs will continue to improve. Furthermore, the vendors who focus most closely on the needs and requirements of SMEs will be the most successful. Those who do not focus on core needs, will not survive economic downturns. A key factor in selecting CRM software will be the viability of the vendor in the marketplace. Microsoft's unquestionable strength gives Microsoft CRM a clear advantage in this regard.