Will Microsoft’s Dynamics Business Remain Indirect in the Cloud?

This article is adapted from the WPC 2011 Business Report by Dynamics consultancy TerDege.

Microsoft is experiencing the most exciting phase to date in its 36-year history. The transition from the traditional on-premise delivery model to delivering software as a service "from the cloud" is a challenge that transcends all previous challenges! This transition has implications for all conceivable areas of the business - from product development to marketing and from financial results to customer expectations. And not only Microsoft, but also Microsoft Dynamics partners are facing a radical transition!

...

Requires FREE Membership to View

Login
Become a Member Joining MSDynamicsWorld.com gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more, and it’s all FREE. You’ll also receive periodic email newsletters with the latest relevant articles and content updates.
About Guus Krabbenborg

Guus Krabbenborg (1961) has been active in the world of business software for more than 25 years. He has held various sales and management positions at Philips, Digital Equipment and Navision Software successively. He was also co-founder and co-owner of the Dutch Dynamics partner DBS Business Solutions. From 2000 till 2007 Guus has worked as a consultant and trainer at TerDege Training & Consultancy, an independent agency focused on the international market for business software.

Since 2007 Guus is co-founder and partner in the firm Partner Master Class, the Dutch PDC. In a growing number of countries in Europe and Asia Pacific this company offers training and coaching in the five business areas that are part of the Dynamics Partner Academy.

His newest venture is called Quattro Business Solutions. This company acts as the Master VAR (better: Value Added Distributor) in the Microsoft Dynamics channel in a number of countries in Western Europe. Guus is co-founder and co-owner in QBS and has responsibility for the training and coaching activities.

Read full bio...

Challenges of the Cloud

Thanks Guus for introducing this topic, which is indeed one of the most significant to face Dynamics Partners worldwide.

My own research into cloud adoption backs up your observation that Microsoft will have to radically re-invent itself on the Service delivery side in order to make it work. This is no small feat.

So, if they succeed, does that mean the reduction of margings for VARs?

If they fail, does that mean the VARs are safe?

Unfortunately the answer to the first question is "yes" and to the second "no". Or at least it will be "no" to the second unless some major changes are made to the MS Partner Program. Following your advice, again, look at what SAP are doing with ByDesign and how they are compensating the channel.

Lastly, I agree again that we need to look at the "VA" in VAR. Customers will always pay for value - yes they will have preferences as to whom they pay and what the terms are - but they will pay. This opens up further discussions about Marketplace and Verticals, of course. Interestingly it will be the NAV and GP resellers who could win biggest here. The AX channel may only be left with delivery.

Cloudlight
...behind every cloud...

Partnermargins in the cloud

Thanks for your feedback Cloudlight!

I do believe there will be pressure on the marging for partners that add no or only little value to the standard Dynamics offering. With that it's important to realize that what is of value in the cloud today could be a commodity tomorrow!

On the other hand the partners that do deliver real customervalue the margin will increase. That's the other side of the same coin.

So the message for Dynamics partners is quit simple: climb higher in the value tree and don't wait too long with that!

minivan