The Consolidation of Microsoft Dynamics AX Partners and the Growth of the Independent Market: How do SMB customers adjust?

Microsoft Dynamics AX has evolved over the years from an ERP system designed for small and mid-size businesses (SMBs) to what is now seen as a true enterprise grade system for companies that once would only consider SAP or Oracle. 2016 has already proved to be a year of change within the Dynamics AX market, starting with the replacement of Convergence with Envision, and of course the release of the new Dynamics AX.  

As with every new release cycle, there is a bit of uncertainty from stakeholders in the ecosystem regarding what changes in the community and product really mean. Existing customers must balance the need to upgrade their systems with the associated risks and cost. Adding another layer of complexity is the new AX's stance as a true "cloud first" platform. Customers who are new to AX face a crucial challenge: finding knowledgeable consultants who can help them implement the system and provide support post go live. One way to accomplish this is by going through the traditional VAR model, which is what most customers choose to do. However, for SME customers, we have seen an uptick in the demand for independent consultants who are fully dedicated to a project, and can be used on demand.

One of the factors in the increased demand for independent experts by SMB customers is the rapid consolidation of Microsoft VARs. In 2015 alone we saw a number of major transactions. UXC spent millions of dollars within 6 months on acquisitions, only to be bought by CSC in a $300 million dollar deal in October of last year. Audit firm