Microsoft Dynamics Partner Gut Check: Upcoming Certification Changes Realign VAR Ecosystem (Part 2)

With the upcoming changes to the Microsoft Dynamics Partner organization beginning in October 2010, Microsoft will require its ERP and CRM partners to become more industry focused, more scaled up, and better able to tell the full story of an integrated solution. 

Microsoft Partners' opinions on the new requirements are mixed, and not all based on the organization's size. And a number of opinions are given to MSDynamicsWorld.com only without attribution, reflecting the sensitivity of partners to the coming marketplace changes.

"What Microsoft is doing impacts the small consultancy firms," said one Microsoft partner, who asked not to be identified. "This whole approach of verticalizing partners is going to do away with what we know as Lifestyle partners-the small partners and consultant firms that don't do too many sales but live off the services that those sales generate. The mom and pop consultant firms with only three or four employees."

The partner said given the new competency requirements, it's going to be a lot harder for small consultancy firms to fulfill all the new certification requirements and to go after new business. He said Microsoft realized that smaller partners can only deliver so many sales in a year, so the software giant aggressively started a campaign about two years ago to have partners focus on vertical industries-something that's just not possible for the smaller partners.

"When you don't have a vertical focus, then it will be harder and harder to go after business," he said. "What's going to end up happening is less and less attention is going to be paid to the small partners. Microsoft is forcing the consolidation of the market, that's why you see so many acquisitions going on right now. It's easier for a larger partner ...