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 an AI-powered tool called "Dynamics 365 Activate" that can help Salesforce customers transition to its own SaaS solution with ease. Executive VP Jeff Teper described this as a comprehensive, AI-driven software designed to simplify the migration process and reduce risk for both partners and customers. The tool is currently available for a public preview and promises to convert Salesforce implementations to Dynamics 365.
Microsoft aims to create a unified implementation experience, covering new business setups, migrations from existing tools like Salesforce, or the growth of existing Dynamics-based businesses. The AI-powered converter analyzes data, identifies relationships and dependencies, and highlights customizations that require attention. This process gives implementation teams a clearer blueprint for the migration, making it more efficient and reducing potential risks.
Microsoft has targeted Salesforce partners with this tool, as it believes it will expedite their understanding of users’ existing applications. By using the insights provided by the AI converter, partners can better assess Salesforce environments, determine which elements to preserve or redesign, and identify potential migration risks earlier.
This empowers teams to focus on solution architecture, industry expertise, and change management. Microsoft has been striving to build a significant business applications business since acquiring Great Plains Software in 2001. Although it's difficult to quantify its success due to the lack of a specific revenue line item for CRM and ERP, the Productivity and Business Processes business unit, which includes Dynamics, garnered $140 billion in revenue in FY 26, marking a nearly 15 percent year-over-year increase.
It's believed that Microsoft holds around 25 percent market share in the ERP sector but only holds about four to five percent of the CRM market, where Salesforce dominates with approximately 20 percent share. However, Salesforce's Agentforce platform hasn't impressed users, and AI spending at the CRM giant has impacted its margins.
This presents an opportunity for Microsoft to attract Salesforce customers who might be dissatisfied with the company's AI offerings.
Written by urgent.news from The Register's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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