Microsoft sales changes could help it challenge Salesforce in cloud software

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Microsoft is now making sure that its salespeople bring up Dynamics 365 cloud software with customers. The effort could lift Microsoft's small market share.

A person who works with Microsoft customers told CNBC he has seen Microsoft aggressively promote Dynamics and PowerApps into as many enterprise agreements as possible. This person declined to be named discussing confidential customer information.

"Microsoft engages executives throughout the agreement renewal process and we routinely check in with salespeople to make sure they're exploring Dynamics 365 and Power Platform prior to each deal's completion," Microsoft spokesman Frank Shaw told CNBC in an email on Tuesday. "This is about being efficient with customer engagement and ensuring awareness of the growing interest we see in these offerings, without introducing any change to the structure of customer agreements.

Earlier this month, Salesforce CEO Marc Benioff published a tweet containing a chart that shows Salesforce's expansion in the CRM market, based on data from research company IDC. The data shows in 2019 Salesforce controlled 18.4% of the market in 2019, while Microsoft held 3.7%. An IDC spokesperson did not have more recent data available.

 

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