Microsoft goes after Salesforce and ERP users with AI-powered converter
Ironically, this idea lands as Salesforce is struggling to sell its own AI
Microsoft has unveiled a new AI-powered tool called "Dynamics 365 Activate" to assist businesses in migrating from Salesforce to its own Dynamics 365 software. The software, described as "comprehensive" and "AI-powered," aims to simplify the migration process, reduce manual effort, and lower the risk involved. Microsoft has made the tool available for a public preview, which can convert Salesforce implementations to Dynamics 365.
The company's ultimate goal is to create a single, unified implementation experience for businesses, covering everything from starting a new business or business process to migrating from an existing tool like Salesforce or growing an existing Dynamics-based business. AI plays a crucial role in the conversion process, as it can profile data and entities, identify relationships and dependencies, and highlight customizations that require attention.
For Salesforce customers, the tool will analyze their existing CRM environment to build a detailed understanding of data, business processes, customizations, and dependencies. Microsoft's partners are also a key target for the AI-powered converter, as it helps them quickly understand users' existing applications and make informed decisions about preserving, simplifying, or redesigning aspects around AI and agents.
Microsoft has been investing in the business applications market since acquiring Great Plains Software in 2001. Although it's difficult to quantify the success of this strategy due to the lack of a dedicated revenue line item, the Productivity and Business Processes business unit, which includes Dynamics, generated $140 billion in revenue in FY 26, marking a 15% year-over-year increase.
The company is believed to hold around 25% market share in the ERP market, but only about 4-5% in the CRM market, which Salesforce dominates with approximately 20% share.
Despite Microsoft's aggressive push, Salesforce customers may be increasingly interested in exploring alternatives, as its Agentforce platform hasn't generated much enthusiasm according to recent reports. However, Microsoft is using AI to its advantage, potentially targeting Salesforce customers who are not satisfied with its AI offerings.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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