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Edition: U.S. Article Comments (0) Email Print Reprints Read Taylor says U.S. headed for recession | 06 Dec 2010 Obama announces tax deal with Republicans | 06 Dec 2010 China's GDP is "man-made," unreliable: top leader 06 Dec 2010 Latest WikiLeaks developments 06 Dec 2010 Appeals court hears California gay marriage case 06 Dec 2010 Discussed 62 Senate bid to renew ”middle-class” tax cuts fails 43 Premature to end military’s ban on gays: Senator McCain 41 Special Report: A day without genetically altered orange juice Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Playboy opens Mexican casino Sun, Dec 5 2010 Analyst Research Report Title Price Market Edge Equity Research Report Provider: Market Edge $10.0 Buy ValuEngine Detailed Valuation Report for CRM Provider: ValuEngine, Inc. $25.0 Buy CRM: Risk/Reward Rating: Full Report: Cash Truth Behind the Reported Earnings Provider: New Constructs, LLC $25.0 Buy SALESFORCE-COM INC (CRM=US) - REPORT FOR ACTIVE TRADERS Provider: Pechala's Reports $25.0 Buy Infotech Industry Market Research and Competitive Analysis 2010 Provider: Plunkett Research, Ltd. $299.0 Buy NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. Small Business Using your smartphone as a remote Controlling a ball with a smartphone is just the tip of the iceberg for entrepreneur Ian Bernstein. The Orbotix founder envisions many applications for his technology such as helping the physically challenged. Full Article | Video Factbox: Orbotix TechStars’ founder predicts accelerator implosion Microsoft offers Salesforce users money to switch Tweet This Share on LinkedIn Share on Facebook SEATTLE (Reuters) - Microsoft Corp is offering customers of Salesforce.com Inc thousands of dollars in rebates to switch over to its own customer relationship management system. In an advertisement placed in the U.S. West Coast edition of the Wall... Related News UPDATE 2-Sony sells 4.1 million Move systems, races Kinect Tue, Nov 30 2010 Microsoft eyes leap back into TV: sources Mon, Nov 29 2010 Supreme Court to hear Microsoft appeal on i4i patent Mon, Nov 29 2010 UPDATE 1-Reuters Summit-Microsoft eyes leap back into TV-sources Mon, Nov 29 2010 UPDATE 2-Top US court to hear Microsoft appeal on i4i patent Mon, Nov 29 2010 Analysis & Opinion Deals wrap: Novell deal a Microsoft maneuver? Related Topics Technology » Hot Stocks » Asian Markets » Stocks Salesforce.com is seen in a screengrab taken December 6, 2010. Credit: Reuters/Salesforce.com SEATTLE | Mon Dec 6, 2010 4:34pm EST SEATTLE (Reuters) - Microsoft Corp is offering customers of Salesforce.com Inc thousands of dollars in rebates to switch over to its own customer relationship management system. In an advertisement placed in the U.S. West Coast edition of the Wall Street Journal on Monday -- timed to coincide with the start of Salesforce.com's annual 'Dreamforce' user conference in San Francisco -- Microsoft is offering companies $200 per user to move to its product. The incentive, to be used as a rebate on the cost of transferring to Microsoft's system, could add up to tens of thousands of dollars or more for some companies. Microsoft's move is the latest in a lively rivalry between the two companies, vying over the emerging role of "cloud computing," or providing computing power and applications over the Internet. Salesforce.com, which sells programs to organize companies' contacts with its customers, is a leader in the "cloud" and aggressively campaigns against the use of installed software, which is Microsoft's stock in trade. Microsoft has countered by taking many of its services online and now offers alternatives to Salesforce.com's products using a combination of installed software and databases accessed online. "At Microsoft, we do not believe you should be forced to pay a premium to achieve business success," Microsoft executive Michael Park wrote in an "open letter" to Salesforce.com customers, which appeared as an ad in the Journal on Monday. In the letter, he urged customers at the Dreamforce conference to ask Salesforce.com to justify its prices and service. Salesforce.com said it had not yet seen any of its 87,000 customers cancel as a result of Microsoft's offer and dismissed the ad as the ruse of a struggling competitor. "The ad marks a new decade of desperation from Microsoft," said Kendall Collins, Salesforce.com's chief marketing officer. "The fact that the ad is centered on pricing and a rebate, it's just a very desperate strategy from a company that clearly does not have a good product." Collins said the timing of the ad acknowledged that Dreamforce -- attended by 30,000 people this year -- was the world's most important cloud-computing event and likened Microsoft's customer relationship management product to its unpopular Zune. "Microsoft's CRM is doing for CRM what the Zune has done for music players," he said. "It doesn't bring any innovation, it doesn't bring a new vision, it brings an inferior product at an inferior price." Microsoft's online CRM product usually costs $44 per user per month, although it is currently offering an introductory year at $34. Salesforce.com's comparable offerings start at $65 per user per month, with its most popular product priced at $125. Salesforce.com Chief Executive Marc Benioff has long been a strident critic of Microsoft, which he has referred to as a technology monopolizer and "patent troll." Earlier this year, the two companies settled a patent disagreement over who owns the technology behind their respective systems. Microsoft shares, which are down 12 percent this year, fell 0.7 percent on Nasdaq. Salesforce.com shares, which have almost doubled this year, rose 1.7 percent on the New York Stock Exchange. (Reporting by Bill Rigby; editing by Andre Grenon) Technology Hot Stocks Asian Markets We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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