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Microsoft CRM 2011: Enterprise software, meet consumer expectations

By | February 4, 2011, 8:49am PST

Summary: As much as some may wish for Microsoft to abandon the consumer market and refocus on its enterprise business, that’s not going to happen. Instead, what is increasingly happening is business-focused products and groups at Microsoft are integrating more and more concepts and features that many consider “consumer”-oriented rather than “business”-focused.

As much as some may wish for Microsoft to abandon the consumer market and refocus on its enterprise business, that’s not going to happen.

Instead, what is increasingly happening is business-focused products and groups at Microsoft are integrating more and more concepts and features that many consider “consumer”-oriented rather than “business”-focused.

That point was driven home to me last week during a meeting I had with Craig Unger, the General Manager who heads up R&D for Dynamics CRM. Unger has been at Microsoft for almost 20 years, starting back when he worked on Excel 4 and 5 as a designer. The past four years, he’s been working on Dynamics CRM.

As I blogged previously, with the 2011 release of Microsoft CRM, the Redmondians did something unprecedented (for Microsoft): They rolled out the online version of the product before the on-premises version. Until I chatted with Unger, I didn’t really think about the kinds of changes on the back-end that rollout strategy required.

“How do we take enterprise software and mesh that with consumer expectations of how advances should arrive?” Unger asked. That was a key question for the hundreds of Softies who worked on the CRM 5/CRM 2011 release for the past three years, he said.

The team had to switch up everything from the kinds of engineering and test processes it conducted, to how it structured its pre-release programs. The CRM team had to “make sure we used our calendar time so that new development processes were running in parallel,” he said.

“There was no more ‘wall’ to throw the (finished) code over,” Unger said. Instead, there was a single team working on the online and on-premises versions of the product from the get-go.

In terms of specific “consumer-friendly” features, the CRM team also for the first time delivered the product in 40 languages simultaneously by creating a language codepack that gets installed alongside the single core codebase. The language pack allows any organization to decide on any customized subset of languages for its workforce.

Unger cited the try-before-you-buy option for the new 2011 release as another example of how the “consumerization of IT” is having an impact on Microsoft’s directions.

“This (easy-to-sign-up-for trial) is a whole different model for enterprise software,” he said.

In a world where users expect regular updates, rather than waiting for two to three years for a “major” update, the rules are different, Unger said.

Unger’s comments made me think back to former Chief Software Architect Ray Ozzie’s 2005 “Internet Services Disruption” memo. Ozzie wrote:

“Products must now embrace a ‘discover, learn, try, buy, recommend’ cycle – sometimes with one of those phases being free, another ad-supported, and yet another being subscription-based. Grassroots adoption requires an end-to-end perspective related to product design. Products must be easily understood by the user upon trial, and useful out-of-the-box with little or no configuration or administrative intervention.”

Ozzie has moved on now, but it looks like his advice is starting to take hold….

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft CRM 2011: Enterprise software, meet consumer expectations
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The new way is starting to take hold, perhaps. On the other hand, look at the update frequency for a clear consumer thing: Windows Phone 7.
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Yes. maybe
Mary Jo Foley 4th Feb 2011
Exactly. Just when you think they are kind of "getting it," you see examples to the contrary. MJ
@Mary Jo Foley don't really agree there.... maybe you haven't used WP7 for any time... because I have and it's really quite good.
@John Baxter

You do realize that the WP7 update is a LOT more than just adding copy and paste which is what everyone gets spun up on (smart text already handles most of these requirements in the phone anywya). Remember, they are to launch on CDMA/LTE networks this Spring, so I imagine the update will also allow for phones on Sprint, Verizon etc...
@omdguy
To end-users already holding GSM WP7 devices, having availability on CDMA networks considered an 'upgrade' is a bit of an insult.

I actually like Microsoft, but it's no secret that they 'don't get' consumer stuff.
Definitely the move to the cloud with CRM Online is shaking up the delivery model. Sort of a good trade off for much faster time to market and ability to sign up a new customer faster. CRM Online feels very much like SalesForce now though.
... that are applied to the business market, are MS' best hope of keeping Apple and Google at bay in the business market. Generally I see nothing wrong with MS entering new markets for the sake of diversification. The problem with entering new markets, is that you have to recognize different priorities and develop new skill sets; plus you have to innovate over the incumbents in the new markets, to get ahead. Innovation is not restricted to new technology, it also has a lot to do with marketing and various forms of support. Therefore entering new markets is generally not supposed to be a breeze.

I see nothing wrong with the PC today. I think it just needs to be re-invented, primarily with a new touch UI, along with supporting services. Overall I think MS should move away from the browser as much as possible.

I believe there is more than one way MS can drive users to its services, remain relevant, and actually make money doing so. As I've said several times over the years, I believe MS should come out with an MSN app, and make it part of Windows. Actually I believe MS should come out with a MS services, lightweight, rich client app, that includes access to all of MS properties - including an app store, its Zune services, MSN, Microsoft.com, and MSDN. This would not be an unprecedented move. This is precisely what Apple does with iTunes. The MS properties app would just be larger in scope, and have tiered subscription services in certain sections. If regulators have an issue with the app being included in Windows (which should be pinned to the task bar by default), MS could strike a deal with OEMs to knock $1 off the Windows license, if they include the app on their PCs.

The above has the potential to generate a lot of revenue, and cause MS online services to actually make money - not lose hundreds of millions of dollars every year, like it has done over the last 15 years. Again, Apple (with iTunes) has proven that it is possible to have a rich client app, successfully be the gateway to services, in a profitable manner.

My point is that I believe that MS should be in, and learn the consumer market, and use its derived knowledge to consumerize its business and other software - but in ways that are overall to its advantage. MS should not follow every trend, but understand trends, and use them in ways that are to its advantage. That is why I believe MS should continue to develop strategies - but ones which lessen its dependence on the browser.
...then it will lose users by the thousands. Who would pay for stuff that the competition is giving away free? Don't get me wrong - I love the new Hotmail interface and the way it's been made seamless with SkyDrive and other Live services. I also have an ideological bias against Google and will not use use any Google service - paid or free - because I simply don't trust them to keep my information private. But if MS were to charge money for anything that's currnetly free, I would definitely look for a third alternative... maybe Yahoo, even though the UI is extremely clunky.
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RE: Microsoft CRM 2011: Enterprise software, meet consumer expectations
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