Microsoft's foray into the CRM arena has not been a bed of roses, despite its indisputably large marketing muscle and R&D investment, its strong channel, traditionally attractive pricing policies, and the aura and experience within the market segment. Microsoft CRM remains both a threat and an opportunity for the most nimble mid-market CRM vendors. Microsoft’s entry with CRM evangelism through an array of seminars nationwide has bolstered the market’s awareness of the need for CRM applications.
Thus, all going well, Scala should fairly quickly add basic CRM features to its ERP offering, which should strengthen its competitive position in the segment. The vendor will continue to target midsize enterprises that require an integrated, enterprise-wide offering at a lower price than those of Oracle, PeopleSoft/J.D. Edwards and SAP. While Tier 1 systems can cope with the complex needs of centralized functions and a large number of users, they are often not well suited to handling the less complex