Microsoft Keeps Dynamics ERP's HR Management Capabilities Low Profile in Crowded HRMS Space

When it comes to human resource management systems, Forrester Research recently found that Workday, Oracle PeopleSoft, Oracle E-Business Suite (EBS), and SAP lead the pack - each with its own unique strengths. The Microsoft Dynamics unit declined to participate, according to a footnote in the Forrester report.

So how does the HR functionality of Microsoft Dynamics ERP products stack up to other HR systems?  In short, it depends on the product - both for current capabilities and the roadmap.

"I think it's kind of a two-tier thing," said Robert Helm, an analyst at Directions on Microsoft. "I think for the mid-market partners there's probably not going to be a huge change of scope in terms of what those products do for HR. So for Dynamics NAV, Dynamics GP, and Dynamics SL, I think it's going to continue to rely on partners."

But it's a different story when it comes to Dynamics AX, which is planning to expand and rebuild in the HR area. Helm said Microsoft made such massive changes to the architecture in Dynamics AX 2012 that it couldn't be sure all its solutions would run on the new product. So Microsoft said it's going to improve the HR capabilities in the Dynamics AX 2012 R2 release set for sometime in 2013.

"For example, when Microsoft came out with Dynamics AX 2012, [the product] lost the ability to do US payroll," Helm said. "It had a US payroll module for Dynamics AX 2009 but AX 2012 doesn't have that. That's something Microsoft plans to add ...