Microsoft bandwagon moves on manufacturing SMEs

No fewer than 16 more system integrators are now partnering with Microsoft Business Solutions to offer the Axapta SME manufacturing ERP system in the UK. That brings the total to 33 that have joined the MBS bandwagon. Names include recently announced Gedas, the integrator arm of automotive giant VW, which is working automotive-specific developments, and Siemens Business Services. It also includes Bearing Point (formerly KPMG) and Sterea (formerly Integralis, Bull’s system integration arm), and now Open Business Solutions, the Mapics (and thus also Frontstep, post acquisition) ERP VAR in the UK. MBS managing director Simon Edwards says that although the firm is having to work hard for ‘mind share’, it is now happening. He says revenues have already grown 50% as a result of the expansion of partnerships, and is confident of continued growth as what he claims are the price/performance benefits, coupled with industry experience, kick in. In fact, the deal for SME manufacturers is about to be further strengthened. From July 1, Microsoft is reorganising, giving MBS responsibility for developing and marketing not only all three of its ERP solutions (Enterprise (formerly Great Plains), Axapta and Navision (formerly Attain)) through the partners, but also the whole Microsoft range of 13 enterprise servers, services and the rest for SMEs. MBS globally will be headed up by Orlando Ayala (who ran Microsoft’s global commercial organisation), with Edwards in charge of the UK company. Sales will be via the partner programme, set to continue growing and managed by Microsoft SMS&P (Small to Medium Solutions and Partners), a new organisation coming out of the SMB part of Microsoft. As for the longer term strategy, Edwards remains intent on transforming ISVs gradually into distributor/partners. He says that once Microsoft’s Business Framework is launched (within two years), the sophistication game will have move significantly up. That being the case, he says the incentive is already there for ISVs to reconsider their development strategies, and work with more closely with Microsoft – partly to deliver value add applications on top of what will become a pervasive and given framework, and partly because they simply won’t be able to afford the R&D cost of keeping up.