Autumn 2009

The appeal of Microsoft's Dynamics software platform in the multi-channel market could pick up in the light of moves by Microsoft to add more vertical-market capabilities to its core system.

Until now, the basic proposition behind the platform has been that it offers a core interface plus processing and database functionality, saving developers from having to create their own underlying system, but it leaves specialists to configure the system and add functions and processes suited to specific user markets.

This remains true, but now Microsoft is also adding some industry-specific content, notably to the AX version of Dynamics. According to Crispin Read, general manager of Microsoft Dynamics ERP: 'We are investing in building industry functionality directly into the Microsoft Dynamics AX application.'

From Microsoft's perspective, the organisation seems to be competing with other, bigger enterprise resource planning specialists, rather than with vertical market vendors. Crispin Read draws a distinction between his company and other ERP sellers, who 'are cutting corners or trying to reconcile multiple industry offerings as a result of acquiring several companies.'

 

Microsoft, too, is on the acquisition trail, but apparently is taking a highly targeted approach. It has just acquired no fewer than four independent industry solutions based on Dynamics AX, including a process manufacturing solution from Fullscope, a professional service solution from Computer Generated Solutions, and retail solutions from LS Retail EHF and To-Increase Denmark.

UK software house K3, which offers solutions based on the Dynamics platform, takes a strongly positive line on this new development. It has worked closely with LS Retail, and says the acquisition 'will firmly embed retail into the Microsoft roadmap.'

According to Colin Bain, K3 BTG managing director: 'It will secure the future for customers and provide a stable platform on which partners like K3 can continue to innovate with focused point solutions like the K3 Multi Channel suite.'

The full Dynamics platform also includes the NAV (formerly Navision) and GP (Great Plains) solutions, though it is not clear yet whether future vertical market acquisitions will also affect these product lines.