In Hosted Dynamics CRM Arena, Partners Big and Small Will Compete to Add Value

In the realm of hosted Dynamics ERP and CRM, there is a place for Microsoft and a place for the partners.  So long as each competes in the appropriate spaces there should be plenty of business for all.  So says Jeff Edwards, Director of Dynamics Partner Strategy, who described Microsoft's partner strategy as quite stable in its current form - a balance between formal agreement and freedom to operate.

"We think [the hosted model] is a huge opportunity and we're investing a lot," said Edwards.  Microsoft is leaving the field wide open for partners to market their own hosted Dynamics CRM and ERP services.   Other than a "standard contract", as Edwards described it, there are no restrictions on what partners can offer.  

Specialized offerings are what Microsoft believes will allow partners to continue to grow in the hosted space.   The newest and most visible partner to enter this space, EDS, has announced its intention to become the "largest enterprise hosting services provider" to deliver Microsoft Dynamics CRM solutions.  According to Jeb Horton of EDS, the hosted model from EDS will be of a scale and service level that will be able to accommodate "SLA-driven,enterprise class deployments" - something smaller partners may not be able or willing to accommodate or compete on.   While they have no specific IP offerings yet, Horton expects announcements in the next 3 to 6 months.   

EDS will target their existing customers such as those utilizing hosting for Exchange or SharePoint servers as well as new direct customer sales, but they will be openly looking to work with other channel partners looking to provide their customers with an outsourced server hosing solutionfor Dynamics CRM.  "Microsoft has a terrific ecosystem of partners," ...