Dynamics Down Under: Microsoft Scores Big in Australia with AX 2012

After a tight race for their IT dollars Brisbane-based Hastings Deering, which supplies Caterpillar heavy equipment, recently chose Microsoft Dynamics AX 2012 for its enterprise resource planning (ERP) solution. Beating out competitors like SAP and Oracle, Microsoft gains 10,000 new Dynamics users under Hasting Deering's $3 billion plan to double its workforce.

Xapt, a specialist Dynamics partner will provide specific Dynamics modules and heavy equipment domain knowledge while Microsoft's Consulting Services Division will provide implementation services, according to OnWindows.com.

Though a significant gain for Dynamics, there's more work ahead if this ERP wants to make inroads - SAP still owns the bulk of Australia's ERP market at 31%, followed by Oracle at 16% and Microsoft at a distant 7%.

Changing of the Guard

Right now, Hastings Deering has a "few hundred" legacy applications in Cobol and Microsoft Excel spreadsheets according to John Birch, the company's chief information officer (CIO). He hopes the new Microsoft system can eliminate a "few thousand painpoints" that exist in its self-designed system, citing the AX offering as a "full end to end business solution." Implementation spans three years with the aim of providing "one source of truth" for all customer files rather than multiple versions.

But despite Microsoft's important victory, they still lag behind ERP giants SAP and Oracle - both globally and in Australia. Shayum Rahim, head of software research for IDC Australia says that "it is a tall order for any organisation to be able to take share from SAP's commanding lead". With the Redmond company only entering the market in 2000, it has great deal of ground to make up.

Dashing Off

As an emerging IT market, Australia ...