OK, so I am not the only person who thinks Microsoft's Software+Services branding is confusing. The company announced Friday that it is changing the name of its CRM Live software to differentiate between on-demand consumer and small business offerings and on-demand small, mid-sized and enterprise offerings - that it hosts itself. that is. Partners have a separate on-demand offering (that's also on premise) called CRM 4.0.

The new name for Microsoft CRM Live: Microsoft Dynamics CRM Online.

Huh.

The name change to me moves Microsoft's Dynamics brand - four separate ERP suites and CRM - even further away from Microsoft proper by distancing CRM on demand from the company's Live offerings, which are Office (lite) on demand applications. I spoke with an analyst yesterday, James Governor from Redmonk, and he pointed out that because Microsoft is a huge company with "different businesses that have different drivers" the separate businesses shouldn't have the same branding concerns. I agree, to a point. Sure, there should be a completely different nomenclature around xBox than there should be around, say, .Net. But I do think that the naming for on-demand business applications should fall in lock step.

Because branding, it seems, is important.

A recent study released by market research firm CoreBrand, which polled about 12,000 U.S. business leaders, suggests that Microsoft's brand power is in a free fall - and has been for about four years. In 2004 Microsoft was ranked the 12th most powerful U.S. company brand. That rank fell precipitously to 59th in 2007. Microsoft's apex: 1996, when the company ranked No. 1 in brand awareness in the country.

According to media reports CoreBrand ranks companies, after familiarity, on three core principals: overall reputation, perception of management, and investment potential. Apparently while Microsoft still does really well with brand familiarity (is there anyone in the developed world who hasn't used Office?) it is declining in the other areas amongst the 1,200 companies surveyed.

Here's what Microsoft CRM GM Brad Wilson had to say about the CRM Live name change:

"About 18 months ago, we announced plans to release an on-demand offering for Microsoft Dynamics CRM that is managed within Microsoft data centers. This product is now in production with more than 500 early access customers and is moving into broad 'open access' in the U.S. and Canada in Q2 2008. During this incubation phase, the working name for the new product was Microsoft Dynamics CRM Live.

In recent months, Microsoft has launched the new Online brand, with tremendous investment in and focus around on-demand technology for business users. Whereas the Live brand is focused on consumers and small businesses, the Online brand is fully aligned with our existing Dynamics CRM strategy of delivering outstanding solutions for small businesses, midsized companies and large enterprises. As a result, we will be launching the new service as Microsoft Dynamics CRM Online. This is simply a name change; there is no change to the product release dates, target markets, channel strategy or pricing."