Forecasting the Azure ramp up for Microsoft Dynamics ERP partners: More learning, less burning

Microsoft officials have said recently that, unofficially at least, that they believe the number of partners actively selling Dynamics GP or NAV solutions running on Azure (and, ideally, "in" Office 365) could triple in the next year. The current number of early adopters sits at "more than 100" with at least 250 customers live.

If hundreds of Dynamics ERP partners are set to adopt Azure in the next year, how and why will they do it?

Leadership teams in larger partner organizations are likely going to be well positioned to invest in adding Microsoft cloud competencies without dragging down the rest of the business. And channel newcomers without a legacy ERP provider's business structure may also have a good shot at building out an organization tuned to the economics of the cloud. But for the broad base of smaller Microsoft Dynamics partners, those who manage a traditional business and who are themselves SMBs, the prospect of changing business models mid-flight may be too much - especially while the on-premise solutions market remains reasonably stable and perhaps even sustainable.

Meet the early adopters

At this point, the most likely journey to the cloud economy for the majority Microsoft Dynamics partners will be made on the backs of the early adopters. Several companies have already built the mindshare and the technology that could become the beacon for the fast-followers, laggards, and the rest. Let's take a few examples of Microsoft partners who have been evolving their cloud businesses in important ways recently.

In terms of selling Dynamics ERP solutions that could be called a "real" cloud offering, complete with quick provisioning, transparent subscription pricing, and integration with services like Office 365, a few offerings gained some traction coming out of WPC 2014.