A while ago Paco Contreras has made a very interesting post on business value of CRM in the cloud, you can find the post “Demystifying business value of CRM in the cloud” on the Microsoft Dynamics Blog. In my opinion his post is a bit on the long side, lacks a few explanations and misses some illustrations. Whereas the info-graphic by IDC captured all the relevant data you need. In case you missed it, here it is (Or you can download the .pdf file here: Microsoft_CRM_Cloud_Infographic): Furthermore I have summarized the post from Mr. Paco Contreras:
In a typical ‘on-premises’ deployment a customer will be responsible for managing all following aspects:
- purchasing, installing software and hardware, providing the necessary storage,
- network and data centers needed to achieve global scale, trouble shooting, support, updates and upgrades
- and work hard to achieve security and compliance as required by the business and regulators.
- Allocated cost per user = the cost of accessing and using the software (not the cost of managing the solution).
- A lot of variables are involved in managing an on-premises deployment for the complete lifecycle of the application. These variables are the aspects which are mentioned earlier in this post.
In an ‘online’ deployment Microsoft will be responsible for managing all following aspects:
- Networking, Storage, Servers,
- Middleware, Runtime, O/S,
- Hardware and software.
- Plans priced on a per user per month basis
“You need to look at what the opportunity cost is in the marketplace- the time and money you spend on in-house resources versus pursuing your core business opportunities in the market.” – Mary Wardley (IDC)
Why pick a cloud deployment?
- IT staff spends 20% less time on routine service maintenance and has twice as much time to invest in IT strategy.
- Because deployments are three times faster in the cloud, 54% more of sales staff will adopt the solution and in half the time.
- Once deployed, users will enjoy 93% less service down time.
What is the cloud revenue for Microsoft?
When taking a closer look at Microsoft earnings for 2015 Q3, you’ll truly notice the grow in commercial cloud revenue, catalyzed by Dynamics CRM Online:
Commercial cloud revenue grew 106% (up 111% in constant currency) driven by Office 365, Azure and Dynamics CRM Online, and is now on an annualized revenue run rate of $6.3 billion
How does the cloud future look like?
Well, nobody can exactly predict the future, but these new numbers published on Forbes suggest that cloud computing will grow exponentially in the coming years. By 2018, 62% of all CRM software will be cloud-based, with Salesforce solidifying its market leadership position.
Where is my cloud data for Dynamics CRM Online stored?
Your CRM organization location determines where your data will be stored. Microsoft has several major data centers around the globe. I will be posting more about their data centers, privacy and cloud storage in a future post.