Dominion expands Microsoft ties
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Rob Lamb, Reynolds and Reynolds: "I've had dealers tell me they don't want 10 different systems written by 10 different companies that somehow have to be bolted together with the DMS." |
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Dominion Dealer Solutions is expanding its Microsoft ties to entice auto dealers to switch to Dominion's new dealer management system.
Dominion, which teamed with Microsoft to launch the industry's first major new DMS offering in years, intends to sell various Microsoft software and services as it calls on dealers, Dominion is expected to announce Saturday.
Because Dominion's DMS product, called Dominion DMX, is built on a Microsoft platform, it was natural to offer other Microsoft office products as Dominion rolls out its system, said John Reed, Dominion vice president in charge of the DMS business.
For instance, he said last month that dealers want telephones that link seamlessly with their DMS. Dealers also want to share work in progress on multiple computer screens.
Dominion faces a daunting task to pull dealers away from the two giants in the business, ADP Dealer Services and Reynolds and Reynolds, along with several smaller players, including DealerTrack, AutoMate, Quorum and AutoSoft.
Reynolds has spent five years and millions of dollars to upgrade and weave together its software for a comprehensive suite of products that allows dealers to run their stores, Reynolds President Ron Lamb said in a statement. "I've had dealers tell me they don't want 10 different systems written by 10 different companies that somehow have to be bolted together with the DMS," he said.
ADP and Reynolds together hold about 80 percent of the DMS market. Reed acknowledged that it's difficult for dealers to change DMS vendors because of the training required by a switch. He also said it's inevitable that some dealers will negotiate with Dominion to try to lower prices with existing vendors.
Nevertheless, he said Dominion will appeal to dealers looking for the latest technology. Every year, Reed said, about 20 percent of all DMS contracts expire, presenting an opportunity for dealers to change vendors. c
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