Dive Brief:

• Microsoft on Monday announced it had entered a six-year agreement with HP Inc. to supply Microsoft Dynamics customer relationship management (CRM) software, according to an announcement. 
• The contract is a boon for Microsoft, as HP previously used Salesforce for its 6,500 person sales staff and Oracle products for its 20,000 support personnel, according to a Fortune report. 
• Jon Flaxman, HP's chief operating officer, pointed toward Microsoft Dynamics' ability to better facilitate collaboration across the business in a single CRM for HP, rather than using two disparate solutions for different providers. In particular, Flaxman highlighted the tool's simplicity and speed. 

Dive Insight:

The contract is a major win for Microsoft over two key competitors. In July, Microsoft announced it was working to combine its current CRM and ERP cloud solutions into one platform called Microsoft Dynamics 365. The platform allows businesses to pay for the solutions they need in a single platform, including financials, sales, operations, marketing and customer service, among others.

Unlike many of its competitors, Microsoft can tout a united platform, which could work to attract more customers looking for more collaborative SaaS solutions across different enterprise departments. 

Last week, Synergy Research Group released new Q2 data showing Microsoft is the new overall Software as a Service leader.  Microsoft took the lead from Salesforce, though Salesforce continues to dominate the CRM segment. In particular, Microsoft is a leader in the collaboration space, which can tempt customers looking to become more streamlined and efficient across business units.