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Microsoft Business Solutions: Not Just For SMBs

As Wall Streeters gather this week at Microsoft's headquarters for the company's annual financial analysts meeting, it's becoming clearer that Microsoft Business Solutions (MBS) is extending beyond its original target of small- and mid-size businesses.

Though Redmond, Wash.-based Microsoft has always acknowledged that its CRM and ERP offerings would find their way into enterprises via subsidiaries or departments, the enterprise attack now appears to be for real. That's partly because, as MBS Senior Vice President Doug Burgum and other company executives acknowledge, Microsoft Dynamics CRM 3.0 is much more scalable and capable than previous versions.

Forty percent of Microsoft's second-half CRM revenue was in the enterprise, Burgum told CRN. "Our overall revenue increased, and the percentage of CRM going into large companies also increased," he said.

"I'd say we're letting the lid off CRM in terms of larger customers, in terms of number of seats. It's faster there than on the ERP side, but both are moving upward," Burgum added.

Microsoft said it added 50,000 new CRM seats in its fourth quarter ended June 30. Other company executives say the CRM takeoff mirrors SQL Server growth and think the Dynamics CRM product could become Microsoft's next billion-dollar product.

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