Running a business is not a walk in the park. It entails a lot of things aside from the simple act of selling products and services. These days, it is not enough to simply sell to your customers. You have to create a relationship with them. If you fail to do so, you will see them choose your competitor over you. This is where business software comes into play.
Business software usually contains different facets like tracking customer information, mapping resources, and seeing your sales funnels. All these come together in software called CRM or ERP.
CRM stands for customer relationship management. The goal of this software is to keep in contact with clients. Here, you can input the details of your clients. It is not limited to their name alone. You can also input their contact details such as their phone number, address, and e-mail address. These details will help you keep in contact with them for future promotions.
ERP, on the other hand, stands for Enterprise Resource Planning software. It will help you see how your business is doing and where it is going. It will be able to track revenue and see how you allocate resources.
There is a brand that is taking the market by storm in this arena. This is Microsoft Dynamics. In fact, their business suite constitutes 30% of their stocks. It is that profitable to their company. This is a CRM and ERP software that competes with other software such as SAP, Oracle, Sage, and Infor. According to recent statistics, their market share in their CRM software has increased but their share in ERP has decreased. This is in the period of 2006 to 2009. Market share in CRM is only around 3% in 2006 and this has increased to 7% in 2009. Meanwhile, there is also the market share for the ERP. This has declined by 1% from 4% in 2006 to 3% in 2009.
But even with a low market share, the revenues of Microsoft have significantly increased. From $0.92 billion, this has soared to $1.25 billion in 2009.
The software is used in 2 ways. This can either be On-Premise or On-Demand. The On-Premise model is for companies who want their software hosted in their house. This is a model where the user is asked to install the software, manage and configure it along with their network. On-Demand, on the other hand, is where the software is delivered over the Internet. This can save some hard drive space for the company and they can have access to the software at any time.
In the future, the market share for Microsoft Dynamics is expected to increase. The On-Demand option along with the SaaS offering is very attractive to users and is expected to be adopted by different companies in the upcoming years.
However, the ERP option is expected to lose the market. Their competitors are slowly taking the market by storm especially Oracle. There is also Infor and Sage which Microsoft Dynamics has to look out for.
Revenues are still expected to increase. It may even surpass $2 billion by the year 2016.
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