Microsoft’s Push at WPC to Be “Tier 1” ERP Provider Bodes Well for Users, with Emphasis on BI, Servers, CRM, Sofware Plus Services

Last week's Worldwide Partner Conference was targeted at all Microsoft partners and ISVs, but Dynamics received more attention than usual, report two partners.

By focusing heavily on Dynamics, Microsoft signaled its readiness to "nudge its way into the Tier 1 party" of ERP providers that has long been dominated by Oracle and SAP, predicts Chris Zimmerman, vice president of the partner program at Kineticsware Inc., a Microsoft Dynamics AX ISV

John Pence, president of Sunrise Technologies, a Microsoft Dynamics partner, got a similar sense, via Microsoft's push on both the server and business intelligence sides. "They're taking a very long-term approach, and bringing more focus to the Dynamics channel," he observes.

According to Zimmerman, "There was a real transition toward Dynamics in general. We see a shift toward true enterprise platforms like AX." As evidence, he pointed to announcements by Microsoft of a 26% increase in Dynamics partner spending and significant increases in Microsoft R&D budgets.

"They are putting their money where their mouth is," he says.

Pence and Zimmerman see three primary effects on users from these trends:

Harder push for Vista. "Microsoft is going to push very hard to bring Vista and server products into the mainstream," says Pence. It has discontinued offering XP on new commercial desktop machines. "At a minimum, our customers will end up in a mixed desktop environment...and they will have to look at upgrading".

Upgrades of servers. Sharepoint, Performancepoint, and SQL Server, including SQL 2008 due out next month-will enable "a very robust BI environment," says Pence.