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XRM Pricing (Question)

• Barry Paquet - 4/25/2009 5:17:45 PM (PST)

  Can anyone direct me to XRM pricing?

  We are looking to build a LOB app based on XRM --- but we have no idea what our cost will be? Has the pricing model been annouced?

  Any insight would be great. Thanks!

• Helpful Vote = 0
  Julie Yack - 4/25/2009 11:44:37 PM (PST)

  Well, it's not cut and dry.  CRM pricing model is based on number of users and types of access granted.  There are full licenses, read-only ones, external connectors, etc.

  How do you envision your typical user of your XRM solution using your solution?

  Our user group is fed by CRM but the members are not directly interacting with CRM so (luckily) I don't have to worry about licensing CRM to some 500 members.  Our group management team all need a licensed seat of the CRM, but not those with just exposure via the website.

  Do you have an MS partner you are working with for your CRM product licensing?  They would be the best source for you on pricing the CRM seats.

   

  --julie

• Helpful Vote = 0
  Barry Paquet - 4/27/2009 12:22:24 PM (PST)

  Hi Julie,T

  hanks for the response. Unfortunately, I only have more questions :)

  Are you suggesting that if I develop a LOB app on XRM (i.e., just the PaaS) my base cost (COGS) is equal to MS Dynamics CRM SRP? For example, "if" the SRP is $60/month --- I will owe MS $60/month for every seat I sell. Is that correct?If so, I'm very concerned. In addition to the $60/month, I need to develop, market, sell and support my app. These costs plus a reasonable margin throw my business case upside down (i.e., not viable). Besides, why would I pay full SRP? I'm only using the platform and not the CRM business logic/APP?It appears the model makes little business sense. The value of leveraging the platform erodes considerably :(Let me know if I misunderstand something or if you can direct me to a qualified resource. I know several MS CRM partners but none are familiar with the notion of XRM.

  Thanks.

• Helpful Vote = 0
  Julie Yack - 4/28/2009 1:05:37 AM (PST)

  questions are good, they keep me on my toes.

   first, I am NOT a licensing expert.  I can find one for you though.  I am a partner, a reseller, crm user, xrm-maker, etc.

   so, only those interacting directly with CRM proper need the traditional CRM license. 

   Say you build a customer loyalty application for a retail outlet on CRM/XRM.  The folks likely to interact with CRM proper would include customer service reps, marketing managers, internal people.  Each of those internal people interacting with CRM would need a licensed CRM seat.  You extend CRM to manage the external-facing customer portal.  The store's customers will not have a need to be licensed users of CRM.  You would likely need what is called an external connector license, but that is a one-size-fits-all and resonable cost.

   

  Any better now?

   

• Helpful Vote = 0
  Shan McArthur - 5/18/2009 2:53:55 PM (PST)

  Barry,

  There are three primary ways to get CRM licensing.  You or your customers can get CRM Online, which I believe that you will get a referral fee for.  With CRM Online, you won't have any cost of maintaining your infrastructure because Microsoft is providing the entire service for you.  With CRM Online, there is no external connector license.

  If you are setting up a business to provide the application to multiple clients, you can also consider partner hosting (SPLA).  This licensing model allows partners to host CRM for clients and pay Microsoft per user per month.  As with CRM Online, there is no requirement to purchase an externl connector.

  Finally, your clients can purchase their own on-prem license of CRM.  If your solution has a self-service customer portal, you will also require them to purchase an external connector license.

  As Julie mentioned, you only have to pay for CRM licenses for the 'users' that require access to the CRM user interfaces.  If you build a web portal that surfaces some of the CRM functionality (such as helpdesk), you don't have to count external contacts as user licenses.  In laymans terms, if you build an XRM application with contacts for your external customers instead of using users, you won't have to pay for user licenses.  The design of each XRM application is different, but for the most part, what Julie says, considering the people inside the company to be users and outside of the company to be contacts is good guidance.

  Good luck!
  Shan McArthur
  www.shanmcarthur.net

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