Microsoft Corporation (NASDAQ:MSFT) is laughing at the expense of Salesforce.com, Inc. (NYSE:CRM) and Oracle Corporation (NYSE:ORCL). Microsoft announced Monday that HP Inc (NYSE:HPQ) will use its Dynamics customer relationship management (CRM) software to run its sales processes. For years, HP has been using Salesforce and Oracle software so this is a big win over Microsoft’s rivals.
Microsoft Corporation Lands Big HP Deal
The terms of the six-year contract have not been fully released. It is also unknown how much the deal is worth.
Until 2023, Microsoft will deploy Dynamics across the HP landscape. This will help HP improve collaboration between the marketing, service and sales departments and operations. HP will roll out the product to around 20,000 support personnel and 6,500 HP sales persons.
It is also being reported that 2,500 members of its sales team will be equipped with its new Elite X3 tablets and Dynamics CRM beginning next year.
HP COO Jon Flaxman told Fortune magazine that the tech firm wants to enhance big data and analytics. In order to do that, Flaxman noted, it need its teams to simplify, become more modern and increase speed. This is something that Microsoft could definitely help HP achieve. Most of Microsoft’s partners run Dynamics already so HP’s utilization of the service could help simplify the partnership and data exchange. HP has more than 100,000 partners worldwide.
“For us it was a natural move to look at one combined vendor end-to-end,” Flaxman told the magazine. “This is more than just sales funnel product. We liked that and with this integrated platform we can improve our collaboration with customers and partners [and that can] made a huge difference in our thinking.”
Microsoft unveiled plans this past summer to create a new approach to business process applications with Microsoft Dynamics 365. This included merging its CRM and ERP cloud solutions into one cloud service. The tech giant urges users to sign up for a webcast series to learn how to maximize productivity.
HP and Microsoft have been longtime hardware partners. HP computers ship with Microsoft Windows and its Office applications.
Microsoft Corporation & HP Making Moves in 2016
This is just another business deal for the two tech firms that have been making a couple of big ones this year.
When it comes to HP, it recently made headlines over the weekend. HP announced that it would be acquiring Samsung’s printing business for $1.05 billion. This will add roughly 6,000 employees to HP’s entire workforce of 50,000. The move will help HP enhance its presence in Asia. It is expected to close the deal within the next 12 months.
Over at Microsoft, it made waves in the stock market when it acquired LinkedIn Corp (NYSE:LNKD). Microsoft is hoping the $26 billion purchase will reinvigorate the Microsoft brand and also stimulate LinkedIn’s saturated market. Microsoft CEO Satya Nadella thinks he can integrate the social network of LinkedIn with its suite of Office applications. The merger has helped LinkedIn stock surge 61 percent over the last three months.
Year-to-date, Microsoft shares have increased a tepid 2.8 percent to around $57.
Many pundits believe that Microsoft has plenty of legs in the coming years as it attempts to control the enterprise world. Microsoft could eventually become the cloud computing leader.