The Underlying Strategy Guiding Integration of Cloud Services with Microsoft Dynamics ERP

Microsoft chose an admirably straightforward moniker for its strategy to connect the latest, cloud-based services with traditional, installed software. "Software + Services" has been welcomed by many, but criticized by some as a way for Microsoft to pay lip-service to new computing architectures, while continuing its licensed software orientation.

Is Microsoft really counting on cloud services to become mainstream? In a recent address at the University of Washington in Seattle, Microsoft CEO Steve Ballmer left no doubt when he said, "The inspiration for what we are doing now starts with the cloud." He further characterizes Microsoft's bet on the cloud as "all in."

In fact, every business already uses cloud services. Does your company use external hosting for Web sites or email? What about software-as-a-service for customer relationship management or human resources management? Your PC software is no doubt maintained automatically by Windows Update. You search using Google or Bing, and visit one or more social networking sites for business purposes. Microsoft considers all of the above to be cloud services, and Software + Services is aimed at making them behave more like a single resource.

Does this mean that in-house, server-based software is about to disappear? Hardly. Microsoft didn't name their plan "services instead of software." They realize that while the case for using services provided beyond the firewall is clear for many applications, on-site software remains an important part of the mix.

Software + Services aims to provide benefits precisely by applying an appropriate blend of multiple resources. "By deeply and genuinely combining the best aspects of software with the best aspects of cloud-based services, we can deliver more compelling solutions for consumers, developers and businesses," in Microsoft's own words.

Nowhere is the case for installed software more convincing than for ...