Why Microsoft’s Dynamics 365 Is Set for Spectacular Growth



CRM: the fastest-growing enterprise software segment

So far in the series, we’ve looked at Microsoft’s (MSFT) Dynamics 365 performance as well as the company’s initiatives to mark its presence in the CRM space, wherein Salesforce (CRM) leads with a market share of more than 18%.

As businesses increasingly refresh their enterprise software platforms to make them suitable for ongoing cloud technology and to integrate them with new systems to support digital projects, IT (information technology) spending is bound to rise globally. Microsoft is thus bundling its various cloud offerings in an effort to benefit from this growth wave.

The above chart by Salesforce shows that with an expected CAGR (compound annual growth rate) of 13.7%, CRM is not only the fastest growing enterprise software category but also expected to be the largest area to attract spending in enterprise software.

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Growth and competition in CRM is attracting Microsoft

Sharing his thoughts on expected increased adoption of CRM and ERP, John-David Lovelock, research vice president at Gartner, noted that CRM and ERP systems should witness spending of $39 billion and $30 billion respectively, this year.

Lovelock stated: “We’re getting to the post-modern ERP systems, we’re replacing and wrapping existing systems with cloud, and CRM (customer relationship management) is growing gangbusters because CRM is easy to bring on in a cloud offering.”


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