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Microsoft offers zero-percent financing for ERP, CRM

The deal is for purchases between $20,000 and $1M

By Chris Kanaracus
November 13, 2008 12:00 PM ET

IDG News Service - Hoping to spark sales as companies put the squeeze on capital spending, Microsoft Corp. said today that new customers of its Dynamics ERP and CRM applications in some parts of the world can apply for zero-percent, 36-month financing.

The deal, through Microsoft Financing, is good on purchases with pricing between $20,000 and $1 million. It applies to licensing and "first-year enhancement costs" on Dynamics NAV, AX, GP and SL, as well as Dynamics CRM.

Microsoft is also offering standard financing rates on other ownership expenses, such as partner services and customization work.

The zero-percent promotion is available in the U.S., U.K., Australia, Belgium, Canada, France, Germany, Italy, Netherlands, New Zealand, Spain and Switzerland.

While Microsoft's offer is for a limited time, it hasn't set an end date, according to a spokeswoman. The offer does not apply to Dynamics CRM Online, which is sold by subscription, she added.

Microsoft's move fits into a recent trend, reported by The Wall Street Journal, where vendors lend more money to customers.

But one industry observer questioned whether Microsoft's move will have a major impact on sales.

"I'd be stunned if that really influences anyone," said AMR Research analyst Bruce Richardson. "I think it gets your attention and maybe you take a look at [Dynamics] if you're thinking about that versus Salesforce."

Price is only one part of choosing a software package, Richardson said. Customers also must weigh factors such as the amount of training users will need or the logistics of importing legacy data to the new system, he said.

Richardson compared the Microsoft offer to the zero-percent financing deals frequently offered by automakers such as General Motors. It's not as if customers base their decision solely on the fact they'll save money, as opposed to the car or truck's features, he said. "You have to really want that GM vehicle."

Reprinted with permission from Story copyright 2014 International Data Group. All rights reserved.
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