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Monday, September 22, 2008

AMR Research: Awakening a Sleeping Giant - Inside Microsoft Business Solutions' ERP Strategy

According to AMR Research "With IT budgets primed for growth and expansion, a perfect storm is brewing for Microsoft to capitalize on this opportunity with its technologies and Dynamics ERP product family."

AMR Research released a report recently authored by Simon Jacobson and Miles Prescott. In this report they review the current progress of MBS products, or Dynamics brand line from Microsoft, and also offer insight into their belief for what will be necessary for Microsoft to do, in order to increase it's market share of the ERP segment.

Accroding to this report, it's is stated that Microsoft only has a 4% market Share. This was baed on a report called 'The ERP Market Sizing Report 2007-2012'. Meaning that this number is most likely based on 2006 numbers and forecasted beyond that.

In this report AMR intereviews several partners, customers and product teams. In doing so, the key finding for this report are:

- ERP, a crucial component of MBS People Ready positions, also present revenue opportunities for other Microsoft businesses.

- The key to success is in how its partner ecosystem adapts the products to specific company needs.

- Value for customers, partners and Microsoft as a whole depends on the value of business applications integrated with a stable back-end infrastrcutre.

This report has a lot of great information, and not just about Dynamics AX either, but all Dynamics brands. It does point out, and hopefully can help people udnerstand, that Dynamics AX is the flagship brand from all the Dynamics brand that can be classified as ERP offering.

If you interested in this report, you can purchase the full report by going here: AMR Research Paper Link

I want to take these key findings pointed out here and talked about them. The first one, ERP a crucial componer of MBS people ready. This first key point is something not to take as a simple marketing term. That is the people ready marketing term that we all know and have heard before. This is actually a real strategy that Microsoft has been working on, for making their products to be designed with human use in mind. Meaning that it's designed to be ready to use, setup customize and more. Microsoft shoots to make the product easy to use, and is doing this throughout all of it's product lines, like Office, SharePoint, etc.

Second point, the key to the success is in how Microsoft's partner ecosystem adapts the products to specific company needs. I hope that Microsoft keeps this in front of them. The key to the success of the Dynamics brand is the partner ecosystem. The partners are the solution providers, and Microsoft is the platform provider. This should be easy to determine, and understand. Microsoft udnerstands and offer the platform while the partners offer the verticals.

For example Sunrise Technologies, Inc. the Gold Certified VAR I am a part of, is the number one VAR in the world for Textile, Apparel and Footwear verticals. We are the trusted source on this, and customers along with Microsoft understand that. So when a company that falls into that range needs Dynamics AX, Microsoft knows we are best fitted to do that implementation, and offer that client the TAF template. (more here on the TAF template) Sunrise is also good at many other verticals like IEM, Process, and many more. But we offer the TAF template that focuses ont he Textile, Apparel and Footwear verticals.

The third and final key finding, value for customers and partners including Microsoft as a whole depends ont he value of the business applications integrated with a stable back-en infrastrcutre. This thrid point is underscoring the fact that Microsoft is the platform provider. That is what Microsoft should be supplying, the platform. And that is what Microsoft is doing a good job with SQL Server 2008 now, Office SharePoint Server 2007, BizTalk Server, Windows Server and the Dynamics applications that run on them.

I again I would like to recommend you going to the following link and purchasing a copy of the report if your a partner, current or soon to be customer. It will give insight into why Microsoft's Dynamics brand is the right ERP platform for you.

And if your ready to take the next step, contact Sunrise Technologies, Inc. for more information and seeing how we can deliver your next great ERP platform for you.

Check back soon!

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