Directions 2016: Microsoft asks NAV partners to embrace differences of Dynamics 365 opportunity

After hearing two days of guidance on what to expect with Microsoft Dynamics 365 and NAV 2017, partners at Directions 2016 might be forgiven for scratching their heads about the path forward.

Microsoft has made it clear that Dynamics NAV partners are both well qualified and largely unprepared to sell and deliver Dynamics 365 Business Edition (D365BE) Financials. The new offering is based on NAV (that's good), but it can't be a pillar of a company full of well-paid employees who deliver high-value services and support like a NAV partner does today (that's bad). It provides much improved integration with Office 365 (that's good), but Office 365 will also not be sold by most NAV partners, at least not as a primary line of business (that's bad).

What Dynamics NAV partners do not yet have, Microsoft acknowledges, is a business model that can support the sale of D365BE Financials. The main challenge they will face is how to profit from volume sales of a very low-priced product by ERP standards. Compare a typical D365BE deal (as far as it can be imagined today) with the type of business that sustains a typical NAV VAR's team today, and the problems become immediately clear. NAV partners hire skilled employees and compensate them relatively well. Work is planned based on lengthy engagements (i.e., more than a day or two). And just a few NAV upgrade or implementation projects can sustain a smaller shop in tough times. By contrast, an organization selling D365...