CRM Online and the Business Productivity Online Suite — Which One is Ready for the Cloud Computing Primetime?

If ever there were a good candidate for cloud computing the Microsoft way, it’s me. I’ve managed a Microsoft partner firm for …well, a long time, and we pretty much drink the Redmond kool-aid: Exchange for email, SharePoint for our web site and collaboration, Office for all the docs that go into SharePoint, Dynamics CRM for sales, marketing and service, .NET code for any plumbing work. We’ve always had a more or less dedicated IT staff to maintain all those servers. Over the last 5 years I’d guess we averaged 1.5 full-time resources for IT, give or take. Last Summer I sold a big chunk of our business, and along with the chunk I sold went about 70% of my employees and revenue, and about 85% of my expenses.

So now I’ve got a smaller, more profitable business, no IT staff, and no desire to hire any non-billable resources any time soon. I used to justify fulltime internal IT resources by thinking, “well, that’s what we do for customers, so it’s good to get the practice”…but now I don’t want internal IT staff, I don’t want servers, I don’t want to hassle with bandwidth or firewalls or any of that. I just want email, CRM and SharePoint up and running. Maybe recessions make you focus your attention on the stuff you really need, or maybe I’ve become a curmudgeon.

So I tried Microsoft’s two highest profile SaaS offerings, and my experience is decidedly mixed. Here’s my executive summary, after almost a year of experience with Dynamics CRM Online and about four months experience with Business Productivity Online Suite (Exchange and SharePoint online, basically, BPOS if you prefer acronyms):

Dynamics CRM Online is very good, and getting better. I think any small business looking at CRM should consider the hosted options. If you’re a Microsoft shop or you’ve got Outlook users, you should look at Dynamics CRM. You pay, you’re up and running, it works, they’re always adding cool new features. This was what I thought cloud computing should be.

BPOS, on the other hand, is terrible. I’m amazed Microsoft took this product to market. After my nice experience with Dynamics CRM Online, I whipped out my credit card and paid for my monthly BPOS subscriptions, expecting we’d be up and running in no time. That was in November, and although I’m getting monthly BPOS bills regularly, we have yet to get our hosted Exchange email up and running, and worse yet, we have yet to get any worthwhile help or technical support!. It turns out that you apparently need a full-time staff MCSE or a consulting firm to figure out how to actually send and receive emails with BPOS. Don’t get me wrong – I’m all about consulting firms. I can see that you might need professional help to do something complex like migrate users’ mailboxes or implement customizations. But if all you want to do is something that should be simple like get your email up and running, it shouldn’t take months and lots of professional help. If it does, I’d say it pretty much defeats the purpose of “cloud computing”!

I remember early discussions from Microsoft execs on the hosted Exchange model, ca about 12-15 months ago. Back in those days, their stated approach was to only go after the largest organizations; the argument being that they wanted to prove the model with engagements large enough to justify the consulting and services investment required to make them successful. 

Well, based on my early experience with their hosted Exchange, I’d say they should have stuck to this model until they got their product finished…or at least, “finished enough” to be usable without lots of hours from Microsoft Consulting Services. 

Anyway, that’s my two cents worth. Anybody else have a different experience? If so, maybe could you shoot me a quick email with some tips & tricks on how to set up my mx records on my networks solutions dns settings…or whatever that stuff is.

Cheers, Richard — richardk@imginc.com

 

4 Comments »

  1. Mark Adams Said,

    March 16, 2009 @ 5:33 am

    Hi Richard
    BPOS – I am not surprised as a Hosted Exchange provider in the UK since 2001 we know how difficult it is to provide these services successfully, it is not about the technology it is about the service wrap that flows around it. Microsoft will get this right (eventually) and the model does work, I have over 5000 satisfied customer who will testify to that, but choose your partner carefully…

    Mark

  2. Richard Knudson Said,

    March 16, 2009 @ 5:52 am

    Hi Mark –
    Thanks for your comment. I’m relieved at what you wrote, “…we know how difficult it is to provide these services successfully…”. I was starting to wonder if I was just dumb! I don’t doubt that once you get it up and running it works great. But I think a lot of small businesses, especially if they go into it thinking it will be easy, will have a very frustrating experience with BPOS. Either Microsoft should make it clearer what’s required to get it up and running and drive services out to people like you, or make it easier…or a combination of both.

    Regards, Richard

  3. John Butler Said,

    April 8, 2009 @ 3:52 pm

    Hi Richard, I can’t think of a single one of our customers who would want to inflict upon themselves, the nightmare of trying to use Microsoft support lines to get help in setting their email up.

    As Mark comments, in this sector it is about providing support and service (in addition to a solid solution) and that is the critical factor.

    It’s annoying that Microsoft is kicking all of us hosting providers in the teeth in a knee-jerk reaction to win their Google-war, but not terribly worrying because they don’t have a hope of doing it this way. Their partner economics are terrible, the concept of asking people to hand their customers over is flawed..and the customer would not benefit and end up being poorly served..ALWAYS. Microsoft’s concept of a small business is one of a few hundred employees; dealing with a 10 person business is something they’re hopelessly under-qualified to do. The person in the foreign call centre has only a few flow charts to work off…step out of those and they’re lost..and so are you.

    So as long as Mark’s company, mine and others continue to provide what customers in this sector really want, namely top-notch service, you should consider your choices more wisely next time you reach for that credit card!

  4. Richard Knudson Said,

    April 9, 2009 @ 2:36 pm

    Hi John,

    How do you really feel, though? :-)

    Seriously, while I experienced more than my share of frustrations in getting BPOS set up, I DID end up getting it working, and I really like it now that we’re up. In fact, a day after posting the original article, I had about 3 people from the MS Online Services team calling me repeatedly trying to set up support calls and get my issues resolved…which they did and my issues got resolved!

    I was very impressed with their followup, and I’ll put up a more complete post shortly on the experience.

    And btw, I don’t undervalue the services provided by companies like yours and John’s — far from it, since while we aren’t in your space, we do provide services on CRM that are complementary to CRM Online. I was simply making the point that it needs to be easier to set up if they expect small businesses WITHOUT partner support or internal staff to have any success with it.

    Regards,

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