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Should Salesforce Be Worried?
We caught up with analyst Brad Shimmin of Current Analysis to get his take on Microsoft’s move to take Dynamics CRM into the government cloud. He told us Redmond’s cloud platform is “extremely well positioned” to play a disruptive role.
“Look at the incredible momentum Microsoft has achieved with its platform-as-a-service, which is in my mind the most direct and dangerous counter to what Salesforce is trying to do with Force.com,” Shimmin said. “This comes as no surprise and definitely is a shot over the bow for Salesforce but also smaller players that have seen good success in the cloud catering to the government.”
As Shimmin sees it, Microsoft is among the tech behemoths that can come into a market and take the Walmart approach, putting the mom and pops out of business. He expects Microsoft to “make hay” with its push to make Dynamics CRM available in the government cloud.
“I’m not sure how pricing will work out -- if Microsoft will be able to come in and undercut Salesforce, which has been famous for driving pricing down [among] cloud services,” Shimmin said. “That’s something we’ll have to wait and see how it shakes out. For now, I think Microsoft is definitely playing to its strengths.”