CDC Corporation's (CHINA) subsidiary CDC Software has formed a strategic alliance with Microsoft (MSFT) to develop, market and deliver CRM enterprise applications to customers in China via the software-as-a-service (SaaS) model.

"This agreement with Microsoft highlights the compelling value of our Microsoft-centric applications and our unique position as a leading provider of enterprise applications and online services in China," said Peter Yip, chief executive officer for CDC Corp. and executive chairman for CDC Software.

As part of the first phase of the agreement, the companies will offer the Microsoft Dynamics CRM platform together with the CDC Software c360 CRM add-ons as on-site applications in China.

CDC Software's c360 CRM add-on products and development tools for the Microsoft Dynamics CRM platform have been delivered to more than 1,000 customers worldwide in more than eight languages through a network of more that 450 channel partners.

"China represents a strategic growth opportunity for our CRM business," said Brad Wilson, general manager for Microsoft Dynamics CRM at Microsoft. "Our alliance with CDC Software will enable us to leverage its popular c360 CRM add-on products, its deep knowledge of Chinese markets and channels, and its nationwide infrastructure to accelerate delivery of innovative products and services to this important high-growth market."

In a multiphased approach, the alliance agreement also includes plans to explore opportunities to integrate Windows Live Services and MSN with CDC's China.com portal.