As a manager of an IT department or a CIO, you are probably well aware of all the very great benefits to your IT department that comes with moving from an on-premises CRM solution to a cloud-based one.
- With cloud-based CRM, 25 per cent of IT time can be allocated to IT strategy, compared to just 10 per cent with traditional CRM.
- With traditional CRM, 86 per cent of IT’s time will be spent just keeping the lights on undertaking everyday maintenance and support tasks. With cloud-based CRM that falls to 66 per cent.
- And there is more budget to spend on new IT initiatives with cloud-based CRM. Some 27 per cent, rather than 14 per cent for traditional CRM.
Reduce the strain and become more agile
But what are the specific benefits that the IT department can realise by a move to Microsoft Dynamics 365?
- With Dynamics 365, IT will no longer have to spend time managing infrastructure and installing updates as this is all undertaken by Microsoft. This frees up IT to work on value-added projects.
- Microsoft has a guaranteed 99.9 per cent uptime service level agreement, so there is less downtime and lost productivity due to the server going down.
- IT will no longer have to bear the burden of keeping data secure either, as this is all kept by Microsoft in its highly secure, state-of-the-art data centres, which offer best-in-class security.
- New users can be activated and deployed almost instantly, without the need to build new infrastructure.
Reduce the costs
Microsoft commissioned Forrester Consulting to conduct an independent Total Economic Impact study of its cloud-based Sales Productivity Solution, which incorporates Dynamics 365, Office 365 and Power BI*. It interviewed four existing customers and conducted a global survey of 102 organisations that used Microsoft Dynamics 365. Many of these organisations moved to cloud-based CRM solution in order to “reduce the strain on internal IT resources and become a more agile organisation”.
The identified and quantified benefits are:
- Reduced infrastructure costs: Microsoft Dynamics 365 enables organisations to avoid initial and cyclical costs associated with data centre leases, server hardware, security hardware, operations engineers and electricity consumption. With CRM in the cloud, organisations only pay for what they use.
- Reduced maintenance costs: With Dynamics 365, Microsoft handles maintenance and updating instead of the customer. Major security and functionality updates occur seamlessly throughout the year.
- Revenue uplift from faster deployment: Organisations realised a quicker time to value due to very little infrastructure build-out, which shortens the deployment cycle.
- No on-premises CRM software licenses: The SaaS model allowed organisations to avoid paying for on-premises licenses.
But how do the savings really stack up?
From the survey, Forrester was able to put figures to these benefits and create a composite organisation1 to demonstrate the kind of benefits and costs a business would experience by switching to Microsoft’s Sales Productivity Solution.
It found that the costs to an organisation using Microsoft’s cloud-based solution, including software, support and license fees; training costs; and data migration and integration, were $8,387,364 (£6,643,756.83) over a three-year period.
Over the same three-year period, the total benefits came in at $33,704,636, including $608,781 from the reduction in effort needed by support staff, some of whom were able to work on other areas of priority in the business. The net present value or NPV gained by an organisation was $25,317,272.
The ROI after three years was 302 per cent.
So, the move to cloud-based Microsoft Dynamics 365 will not only reduce the burden on your IT department, it will also deliver financial benefits to your entire organisation.
If you would like to learn more about how Alithya can help you to implement Microsoft Dynamics 365 and make a real difference to your IT department, why not listen to our webinar, Your Options for a CRM On Premise Upgrade or visit our web page on how moving CRM to the cloud delivers business value.
Your Options for a CRM On Premise Upgrade
1 The composite organisation had the following characteristics: Multinational corporation growing at a rapid rate; 6,000 employees, 1,500 of whom are active users of CRM, Power BI, and Office 365; and annual revenues of $800 million.