When Microsoft Corp. began shipping its new Dynamics CRM 3.0 update last week, it also tweaked the software's licensing structure to encourage more partners to offer the CRM (customer relationship management) system as a hosted, subscription service. But Microsoft's change is essentially a cosmetic one: The architectural overhaul necessary to make Microsoft a true force in the on-demand software market won't happen until Dynamics CRM's next update, scheduled for release no sooner than 2007.

Microsoft cuts price, still lags in hosted CRM