Microsoft Plans Web-Based CRM Offering

Updated from 4:49 p.m. EDT

Hoping to grab a larger piece of a $5.7 billion market and target rivals Salesforce.com(CRM Quote) and Oracle(ORCL Quote), Microsoft(MSFT Quote) plans to offer a Web-based version of its customer relationship management software.

The new products will be available in the second quarter of 2007 and will initially target small businesses, the software giant said Monday.

Announcing a product a year early is a classic tactic aimed at freezing purchases by customers who may prefer to actually see the new Microsoft CRM application before deciding what software to buy, said Cowen analyst Peter Goldmacher. "This is Marketing 101," he said in an interview. "Near term, it isn't a threat, and it's questionable that Microsoft will be a long-term threat to Salesforce, since this looks like a low-end product," he said. Cowen does not have an investmen-banking relationship with Salesforce. ...