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How much do you know about Microsoft Dynamics 365? Whether you’re a Managed Service Provider (MSP), a Value Added Reseller (VAR) or a small business, Dynamics 365 is a great opportunity to attract new clients and market your services. In this article, we will explain what the opportunity is and most importantly, we will help you decide whether or not you should resell Dynamics 365.


The opportunity

Gartner has predicted that the market for Customer Relationship Management (CRM) software will be worth more than $37 billion by the end of 2017.

CRM experts say this growth follows a trend by many companies to swap their legacy custom-built software for packaged applications such as CRMs and ERPs. Businesses want to get all the application updates and avoid big upfront investments to develop applications in-house.


Resell Dynamics 365


Here are two more facts that might surprise you. In the last year alone, CRM usage increased from 56% to 74%. In addition, Allied Market Research predicted that the market for ERP software will reach $42 billion by 2020. Given that information, you might be wondering, ‘Can I make good money reselling Dynamics 365?’

The answer is yes. First of all, the profit margins for Dynamics 365 are much higher than what you’d earn with Office 365. Dynamics licenses are more expensive and clients are usually willing to pay more for complex solutions such as ERPs and CRMs.  Second, services surrounding the resell of Dynamics 365 are often more profitable. The same logic applies: bigger businesses equals bigger budgets.

As we said earlier, this is a good time to tap into a booming market for Dynamics 365. Do you think it’s the right move for your business? Here are 3 questions that will help you decide.


Should I resell Dynamics 365?


1. Do you already resell Office 365?

Microsoft products are usually an easy sell. Not only is Microsoft one of the most recognized and trusted brands in the world, but their products have proven to be highly effective. This easy sell is even easier when your existing clients are already Microsoft users. They know the applications and their learning curve isn’t as steep. When you talk to your clients, you can also mention the added productivity that comes from bundling products such as Office 365 and Dynamics 365.

If you already resell Office 365, adding Dynamics 365 to your product offering is an obvious step. Office 365 and Dynamics 365 work incredibly well together. Your clients can benefit by centralizing all of their applications and reselling Dynamics 365 is a great way for you to diversify your revenue and increase profit margins. As we said earlier, licenses for Dynamics are more expensive than Office 365, which means better profit margins for you.


 2. Who are your customers?

A CRM solution is a good tool for companies with 20 to 300 employees. However, this number can vary, depending on the percentage of employees that have customer-facing roles. For example, a 150-employee company with customer-facing roles that equal 10% will need about 15 CRM licenses. Manufacturing, retail, consumer goods and service organizations make up the bulk of the clientele for CRM software.

Since ERPs are very complex solutions, the type of companies that use this system varies greatly. Bigger companies are more likely to use ERPs. The more complex the company’s daily operations are, the more they will benefit from an integrated solution such as an ERP. Companies that deal with manufacturing and delivery are usually good candidates for ERPs.

Don’t see your client type in the descriptions above?  Don’t worry. Dynamics 365 isn’t just focused on ERP and CRM. In fact, many Dynamics 365 applications such as field service, customer service and talent can be sold separately or bundled together to attract different types of clients.


3. What type of services do you offer?

As with any reselling business, you can make great profits from the services you offer with a product. For example, if your firm offers consulting and training in Sales and Marketing, it makes sense for you to resell Dynamics 365 for Sales. Many CRM partners have an onboarding process, which they offer to their clients. If you offer consulting in logistics, you can bundle your services with Dynamics 365 for Operations (ERP).

However, the most profitable service that Dynamics 365 partners can offer is system implementation. As we mentioned earlier, Dynamics 365 is more complex than Office 365, meaning it’s not simply “plug and play.” Most clients will need a customized solution, plus the need to integrate Dynamics 365 with other business applications. This is great news for you because it means you can generate revenue for implementation and customization services.


Focus on what you do best

By now, it should be clear that reselling Dynamics 365 is a great opportunity to grow your business. But, you should also know that it won’t be an easy and painless process. There are many aspects to consider before taking the leap into this business venture. How will you migrate your clients’ data? Can you provide 24/7/365 technical support? What other costs should you consider?

Perhaps the most important question you should ask yourself is this: ‘What am I really good at?’ Your answer should be your main focus. For all the other concerns, you can rely on a partner like Sherweb.

Written by The Sherweb Team Collaborators @ Sherweb

As a value-added cloud solutions provider, Sherweb is dedicated to providing more for its partners, direct customers and extended network. The Sherweb Blog is just one example of how we make this happen, and our team members frequently collaborate on content to ensure it's as beneficial as possible for our readers. If you like what you see here, we strongly encourage you to subscribe!