Microsoft eyeing rift in cloud-based Dynamics adoption

Tuesday, April 12, 2011

Factors such as government regulations and companies' desires to retain their financial information on premise are restricting Microsoft's (Nasdaq: MSFT) cloud-based ERP growth in Latin America, Microsoft's Dynamics regional director for Latin America, Daniel Peña, told BNamericas.

Those stumbling blocks are creating a rift in Microsoft's Dynamics cloud computing adoption trends. Only 1% of Microsoft's Latin American Dynamics ERP users signed up so far have been in the cloud, in comparison to nearly 10% for Dynamics CRM.

Looking forward, the software giant is only expecting 20-30% growth in cloud-based Dynamics ERP users in Latin America during the next 12 months, while cloud-based Dynamics CRM growth will be in the high triple digits, according to the executive.

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"The growth in the number of [cloud-based CRM] trials that we are seeing in Latin America is one of the highest in the world," he said. "In particular, Brazil has one of the highest numbers of on-demand CRM trials in the world. The demand that we are seeing in Latin America at this time is higher than Europe or Asia."

Meanwhile, Microsoft is gaining CRM and ERP market share from competitors in several countries and vertical markets, including Brazil, Colombia, government, banking and insurance, according to Peña.

Microsoft Latin America is also gearing up for new Dynamics releases, which will take place in the second half of calendar year 2011.

The full interview with Peña can be read in this week's Information Technology Perspectives, for subscribers only.