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Microsoft Considers Offering Short-Term Contracts For Dealer Systems

September 6, 2006

Microsoft Corp., currently developing its own brand of dealership management system, plans to turn out a system with short-term dealer contracts, reported Automotive News.

According to Microsoft officials, hearing dealers’ complaints about being locked into long-term service contracts of five years or more, triggered the idea for month-to-month contracts for its system.

Microsoft wants third-party software companies to be able to provide dealers with software that can easily connect with its new system. Microsoft has begun working with developers of third-party software that want to sell the programs to dealers. The company plans to introduce software providers to dealers at the National Automobile Dealers Association convention in Las Vegas, this February.

Microsoft is forming an advisory group of 10 to 20 auto dealers to assist it as the company develops its system for dealers in North America.

The company plans to begin testing the system in a handful of dealerships during the first half of 2007.

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