At Concentrix we take a "product agnostic" approach to CRM, finance and ERP systems. We generally don't have a preference which one we sell to whom, as long as it is the best tool for the job. Sometimes this does leave us feeling a bit like parents as we don't have favourites. However, you do feel little bit conflicted when one of your kids is doing a lot better than the others.
In recent times, Microsoft Dynamics CRM has been dominating the mid to enterprise CRM market. This has had quite an impact on Sage's offerings, especially Sage CRM and to a lesser extent SalesLogix. We provide all three, so while we are proud of Microsoft's achievements (and have a large number of high profile, complex, innovative and some really big Dynamics CRM projects in progress or recently completed) we could have started feeling a bit sorry for Sage....
...and this is why I'm very happy that Sage is fighting back!
What's the story?
Sage is obviously best known for accounts and ERP software, but they also own three genuine industry leading CRM products, all of which they have acquired (not written - so it's not CRM written for or by accountants!) and have taken pretty good care of. The three are:
- Sage ACT! - a contact management solution. Sage ACT! is not "real" CRM, but the best in its division. We sell it but it's not on my radar much.
- Sage CRM: browser-based, excellent mid-market to enterprise CRM. Super-configurable, customisable and integratable. We've done some very large projects with Sage CRM for the likes of Royal Mail, Parcelforce, British Gymnastics, sportscotland and Ruddle Merz. Sage CRM is ace!
- SalesLogix - all-powerful CRM from back in the day, recently upgrading so it is client-server and browser based. One of the best in the business for offline and mobile access.
And then there is Microsoft Dynamics CRM. Comparable in features, functionality and cost to Sage CRM but arguably more scaleable and enterprise-focused. It's from Microsoft, so obviously blends into Office and especially Outlook. People like it because it's very, very good; it's Microsoft-ness helps to achieve higher rates of user adoption. To coin a cliche, "nobody ever got fired for buying Microsoft". The full might of the Microsoft brand and marketing machine, coupled with genuine excellence makes this CRM software on every buyer's shortlist.
Now, if you are Sage then you are a "leading supplier of business software and services to 5.7 million customers worldwide", you've got a global presence, marketing leading products and an army of eager Business Partners selling your stuff for you. You might think that you can go toe-to-toe with Microsoft when they enter your market. You might even think you can win.
What's changed?
Having suffered fierce competition from Microsoft, Sage has (in my opinion) taken a strategic view on improving their product offering, focussing on being good where Microsoft Dynamics CRM is weak(ish) and strengthening a few areas where Microsoft have been clearly ahead of the game..
Personally, I'm pleased, nay impressed that Sage is doing SOMETHING, anything. However, I'm even happier that some of these things are actually pretty cool.
While recent developments include improving some functional areas and strengthening the integration with the Sage 200 system, the exciting things from my point of view are changes to the licensing model (I'm a licensing model geek, OK?).
Sage CRM is now available (once again) in "Standard" and "Advanced" flavours. This used to be the case, but someone decided to do away with Standard, stealing Advanced's thunder and making people who wanted entry level CRM go for GoldMine or something similar.
Standard will save you a few hundred quid but cost you case management and marketing, as well as web portal licensing. I doubt many people will buy Standard, but at least it's an option. (There's a data sheet showing Sage CRM standard and advanced licencing compared in the Concentrix CRM Knowledge base)
Sage has also moved away from the frankly bonkers model of buying Sage CRM is blocks of 5 users (so if you had 11 members of staff you'd have to buy 15 users). You now pay for a server license and a license "per user" (so if you have 11 users, you buy 11 user licenses. Genius). This is the same model as Microsoft Dynamics CRM but is a bit cheaper (unless you are a charity, academic institution, government agency, big business, Microsoft Partner... Microsoft licensing is a bit complicated).
However, the best thing Sage has done is introduce proper Concurrent licensing for Sage CRM. This is something that Microsoft Dynamics CRM DOESN'T have (yet - someone in Microsoft is probably working on it right now). At the moment, it sets Sage CRM apart.
Concurrent licensing can be a big deal for some people. For example if you have 100 members of staff but only 11 of them will ever use the CRM system at the same time then you can just buy 11 licenses. I'm not an economist, but that'll save you some cash.
At the moment it's either/or for the whole CRM system, but Sage are introducing "mixed-mode" licensing soon and this will mean you can have some "named" users and some concurrent users on the same CRM. Which I think will be great.
Put that together with the other benefits of Sage CRM and the relatively low cost of such a powerful system and you've got a few extremely good reasons to take a second look at Sage CRM, instead of plumping for Microsoft Dynamics CRM because it looks like the rest of your desktop.
Where does that leave SalesLogix?
Well, SalesLogix is a different animal and will always have a top place in CRM World, even if it becomes more of a niche product for people who have specific offline or mobile needs that something like Microsoft Dynamics CRM can't meet. Sage has simplified and sanity checked the SalesLogix licensing recently, so it's a better and clearer deal.
In Summary - Sage CRM vs Microsoft Dynamics CRM
While Microsoft Dynamics CRM will continue to get better and Concentrix will continue to do bigger and more complex projects with it, Sage CRM is differentiating itself and coming back with a strong alternative.
If you want to have a closer look at which CRM is best for your organisation then please contact Concentrix, and we'll be happy to come and review your requirements, look at the options, analyse the benefits and help you make an informed choice.
John Odell - CRM Consultant
Do you find the system requirements and internal infrastructure differ between a similar implementation of both Sage CRM and MS CRM?
How does this affect the cost of a typical installation?
Thanks
Anon
Posted by: Anon | 05 September 2009 at 09:53 PM
Hello Anon,
Thanks for your question.
The hardware / infrastructure requirements for Sage CRM and Microsoft Dynamics CRM are pretty similar.
Microsoft CRM benefits from a slightly higher spec of server to run on and is best on the latest spec client (PC or Laptop) operating system and version of office.
Microsoft CRM is also a bit "hungrier" for resource, so you wouldn't want to host it on the same server as your other business critical applications. That said, from a best practice point of view you shouldn't do this with Sage or any alternative CRM package.
Both Sage and Microsoft CRM run on Microsoft SQL Server databases, so if you don't already have SQL in your organisation you will need to invest in it for either.
The real determining factors with hardware costs are: How many users will you have? What do you need the CRM to do for you? What is your current IT strategy?
If hardware could be prohibitive to implementing CRM, have you considered going for a hosted / Software as a Service (SaaS) CRM? We provide Hosted Microsoft Dynamics CRM which removes the need for any server hardware and is a great way to get started with CRM with minimal investment and risk.
I hope that answers your question. If you would like to talk about your specific requirements in more detail then please drop us a line.
Many thanks
John
Related reading:
Hosted CRM Blog: http://concentrix.typepad.co.uk/crm_uk/2009/09/hosted-crm-the-easiest-and-quickest-way-to-get-crm-working-for-your-business.html
Join me for an online "Get Started with CRM" seminar - 10th September at 3.30pm: http://concentrix.typepad.co.uk/crm_uk/2009/08/how-to-get-started-with-crm-free-webinar-10th-september-2009.html
Posted by: John Odell | 06 September 2009 at 09:02 PM