Is it "Live" or is it CRM?

News out of  the Microsoft Worldwide Partner Conference is that Microsoft is starting to prime the marketing pump for its next release of Dynamics CRM , aka CRM Live.  Microsoft Dynamics CRM 4 will finally have the multi-tenant architecture to allow Microsoft to compete in the SaaS space with Salesforce.com, NetSuite and the other pioneers of the CRM on-demand model that has changed the landscape.   Microsoft Dynamics CRM 3.0 Small Business Edition is a solid product but it really couldn't compete with the SaaS folks on the low end because of the up front costs associated with installing server software.  Couple that with the growing number of small businesses who don't want to (or can't) maintain systems and you knew that Microsoft would have to make this move quickly if they were serious about capturing market share in the hot SMB space.   And according to this Destination CRM article, it looks like the same code-base will be used in the "live" service as the installed product, with the "live" operations being managed in the Windows Live data centers.

So some time in the 2007 Qtr. 2 Microsoft will officially join the on-demand race.  With the lion share of small businesses just beginning to take a serious look at CRM, look for this to accelerate the pace of adoption.  Salesforce.com's Marc Benioff doesn't seemed to concerned though, as he sees Microsoft as being "out hustled by everyone."  One thing we know about small business though is that they like buying names they know.  So although they are late to the party, Microsoft will still command your attention.  We'll have to see if CRM Live will be worth the wait.