Microsoft News Tracker

As promised back in March, Microsoft today announced the release of Microsoft Dynamics GP 10.0 (formerly Great Plains) and Microsoft Dynamics SL 7.0 (formerly Solomon). GP is a full featured accounting package and SL is an enterprise resource planning software system and both are targeted at medium sized businesses as part of Microsoft’s historically sluggish Dynamics family. New features are “increased business intelligence functionality, a more intuitive user interface and the introduction of structured and unstructured search.”

Last week Microsoft held their Convergence 2007 soiree for their Microsoft Business Systems customers and announced a package linking Dynamics ERP to Office and the upcoming availability of Microsoft Dynamics GP 10.0, Microsoft Dynamics NAV 5.0 and Microsoft Dynamics SL 7.0.

They also trotted out CEO Steve Ballmer to demonstrate the upcoming Microsoft Dynamics Live CRM service targeted at Oracle, SAP, and Salesforce.com. You may recall that it has a rather checkered history involving Microsoft competing with partners for the hosting business.

I wish I could get more excited about the MBS family of products which were all solid if unexciting businesses until Microsoft took them over, at which point they settled into mostly profit-free lassitude despite promises of a grand convergence via Project Green. Now, we can’t even tell how they’re doing since they have been folded into the Windows Business Division (i.e. Office), but it is hard to believe that it is much better.

While Steve Ballmer may be excited about competing with long time partner SAP and the others (see also Barbara Darrow’s report), a relevant question is why they don’t just spin MBS off when it would likely be better for both parties.

In Munich today, Bill Gates kicked off Microsoft’s first Convergence Conference for EMEA and used the occasion to tout how the Microsoft Dynamics solutions fit into the overall Microsoft picture including the “Live” push:

In his keynote speech Gates also outlined the vision for Microsoft Dynamics in the “Live” era that takes business productivity to the next level by deeply integrating Microsoft Dynamics and the Microsoft Office system with online services that accelerate user adoption and maximize the value people get from their business applications. Key elements of this vision follow:

Online business processes from Microsoft and its partners will give customers a rich set of choices when they decide to move a particular process online in a secure environment. The first set of processes that will be available online are the marketing, sales and service capabilities offered within Microsoft Dynamics Live CRM. These will be followed by additional services:

Microsoft adCenter integration is a service that enables Microsoft Dynamics CRM to create online marketing campaigns that place keyword advertising on MSN^®. In addition, similar integrations to Yahoo! and Google can be made by Microsoft Dynamics partners. Integration with Microsoft adCenter will be offered for all deployment options of Microsoft Dynamics CRM: on-premise, partner-hosted and Live.

eBay integration allows on-premise Microsoft Dynamics AX customers to use eBay as an online sales channel, enabling easy placement of inventory and downloading of financial details for sold items.

There’s more by following the link including online collaboration services and communities.

And speaking of online, the other big news was that Microsoft announced a new hosted subscription licensing model for Microsoft Dynamics AX, Microsoft Dynamics GP, Microsoft Dynamics NAV and Microsoft Dynamics SL. Julio De Villasante, Director of Software as a Service Strategy, Microsoft Dynamics:

Another missing piece of the puzzle has been the availability of new licensing models that allow a company to choose between purchasing the solution or subscribing to a monthly service. This is what we are able to deliver today through our ecosystem of Microsoft industry partners. Microsoft Dynamics CRM has been available as a hosted application since last March and it has been extremely well received by partners and customers alike.

Now, our partners can also deliver the full suite of Microsoft Dynamics ERP applications, in either a hosted or on-premise deployment model – and they have the option of purchasing, subscription licensing or a combination of both. The grand finale to this offering is that there is no minimum time commitment; customers can sign up for a short time period, such as a few months, or as long as they would like.

Microsoft ran into a conflict with partners already offering hosted Dynamics CRM in July when they rolled out their own offering and it looks like they have consciously avoided that this time around by leaving it solely to the partners. Of course, that’s what the partners thought back in March when hosted CRM was first announced.

Update Nov. 7: Microsoft also announced Dynamics CRM 2007 which, among other enhancements, works with Vista and Office 2007 and has an additional licensing model. It will be released at the same time as Office 2007 and will be a free upgrade for exisiting customers.

Press release:

Microsoft Corp. today announced the Business Ready Licensing model and the Business Ready Enhancement Plan for Microsoft Dynamics™ that introduces simplifications and improvements in value to the licensing and maintenance programs for its Microsoft Dynamics business management solutions.

Business Ready Licensing streamlines pricing for Microsoft Dynamics solutions — Microsoft Dynamics AX, Microsoft Dynamics GP, Microsoft Dynamics NAV and Microsoft Dynamics SL — by moving from a pricing model based on hundreds of modules and granules to a new model based primarily on the number of concurrent users who actually use the software. This new model has three simple offerings: Microsoft Dynamics Business Essentials, Microsoft Dynamics Advanced Management and Microsoft Dynamics Advanced Management Enterprise. They are based primarily on common functionality and represent a price reduction for a typical entry-level configuration, eliminating much of the complexity of licensing enterprise resource planning software. Designed to increase value for customers through the life of their product solution, the new Enhancement Plan represents a global maintenance program for Microsoft Dynamics solutions and introduces new benefits such as transition investment credits, unlimited online training courses for customers, and resources to connect customers with the Microsoft Dynamics community.

Last week, Microsoft announced a new add-on for Microsoft Dynamics SL (formerly known as Solomon):

Microsoft Corp. today unveiled BIO™ for Microsoft Dynamics™ SL, an operational analytics application that gives decision-makers throughout an organization unique and relevant insight into business drivers. Slated for release to manufacturing in May, BIO (Business Intelligence Optimization) for Microsoft Dynamics SL provides personalized, role-based business performance scorecards that empower employees to help increase the value of their customer interactions, lower product and service delivery costs, and create strategic plans for expanding their business. BIO for Microsoft Dynamics SL extends the solution to include a robust strategic, operational and financial analytics solution.
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Built on Microsoft® SQL Server™ Analysis Services, it also fully integrates with SQL Server 2000 and 2005.
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Microsoft worked closely with channel partner NexVue Analytics Corp. to develop the new business intelligence capabilities for Microsoft Dynamics SL. NexVue, a business intelligence development and consulting organization, is focused specifically on delivering out-of-the-box business analytic solutions specific to the requirements of midsized businesses. NexVue has designed and developed both a business and technical model (BIO) that build on the Microsoft business intelligence development environment for the midmarket that reduces the technology gap and the cost of implementing BI solutions.

Today comes word of another Dynamics SL partnership:

Temtec, a leading provider of intuitive self-service analysis and reporting software for business intelligence, today announced it has signed a software distribution agreement with Microsoft Corporation whereby Microsoft will market a private label version of Executive Viewer® as part of its analytical platform.

“Our partnership with Microsoft Dynamics SL will enable us to significantly extend our penetration into the mid market and add real value to Microsoft Dynamics SL analytical capabilities,” commented Temtec Managing Director, Alan Parker.

Temtec is a Microsoft Gold Certified partner and a leading provider of self-service analysis and reporting software. Executive Viewer is designed to optimise user access to information stored in Microsoft Analysis Services and provide non-technical users the ability to analyse business critical information at the speed of thought for better informed decision making.