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HP Drops Salesforce for Microsoft Dynamics in New Deal
HP Inc. has switched CRM providers from Salesforce to Microsoft, seeking “enhanced” sales, marketing, and service collaborations, Microsoft said this week. HP was already using Azure, Office 365, and other Microsoft cloud services in-house, and the six-year agreement will bring Microsoft Dynamics to thousands of HP employees.
“We have chosen Microsoft Dynamics as our CRM solution for our direct selling, partners and services,” said Jon Flaxman, chief operating officer, HP. “This brings us a cloud-based solution that delivers a more effective and efficient collaboration engine across our business.”
Customer relationship management is generally considered closer to the core of Salesforce than of Microsoft, though Dynamics is evolving, with Microsoft announcing its intention to merge its CRM and enterprise resource management (ERP) offerings as Microsoft Dynamics 365 with apps built for specific business functions.
In November HP Inc. was split from Hewlett Packard Enterprise, which merged software assets with Micro Focus last week. Now HP Inc. wants to make its sales and partner environment more integrated, and Dynamics CRM and Power BI will match its other productivity tools.
“HP continues to innovate in its customer engagement, with the tools and business processes it provides to its employees and partner community and, of course, the products and services it delivers,” saidJudson Althoff, executive vice president of Worldwide Commercial Business at Microsoft. “We share this dedication to digital transformation with HP and are incredibly proud to work with it as it delivers amazing technology experiences to people around the globe.”
Microsoft is expected to bring Dynamics online from its new UK data centers in the first half of 2016.
Salesforce has made several acquisitions this year since it announced AWS as its preferred cloud infrastructure provider, most recently gobbling up document collaboration company Quip in August. Salesforce may also benefit from the acquisition of continental European Salesforce provider New Energy Group by Accenture last week.
