Microsoft Corporation (NASDAQ: MSFT) is pushing products from its Dynamic business segment in a bid to enhance the Commercial Cloud revenues.
According to CNBC, the tech giant is instructing sales personnel to target existing customers to adopt its business management software, PowerApps, and customer relationship management (CRM) software.
What Happened: CNBC reported Microsoft’s directives to its sales teams based on insights from RBC Capital Markets. The efforts to promote its CRM software could lead to increased competition for market share with the dominant CRM player, Salesforce.com Inc CRM.
Reportedly, Microsoft senior management personnel have to validate all enterprise license renewals that leave out the Dynamic 365 and PowerApps.
Why Does It Matter: Microsoft’s fiscal fourth-quarter earnings in July reported a 38% year-over-year revenue growth from Dynamics 365.
According to a publication on CRM.org, Salesforce is the market leader with close to 19% market share, and Microsoft Dynamic 365 ranks fifth with a market share between 3% to 4%.
A report by Statista published in August forecasts a $40 billion market for CRM software by 2023.
Grand View Research’s Report published in April anticipates a CAGR of 14.2% from 2020 till 2027 in the CRM software market.
Price Action: MSFT sshares closed 0.20% higher at $214.65 on Tuesday.
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