As a technology goliath, many already know the humble origins of the company founded in 1975. Microsoft’s mission is to empower every person and every organization on the planet to achieve more, but how does that shape its ERP offerings? Join EAG for a methodical review of Microsoft in the ERP market.
Microsoft
Microsoft is a household name which expands far beyond its original scope since its founding in 1975. Microsoft originally developed and sold software for the personal computer, Altair 8800, but then rose to dominate the personal computer operating system market. Today, Microsoft offers an extensive array of technology products, including Enterprise Resource Planning software.
Microsoft has around 181,000 employees with approximately 103,000 in the United States and 78,000 employees international. While they are headquartered in Redmond, Washington, they have offices in over 100 countries. With over 60 data centers, they have continued to expand further, adding 15 of those in 2021 on five different continents.
What Does Microsoft Sell?
Microsoft offers an array of products and services for consumers and businesses. Consumers are most familiar with Microsoft’s Office 365 products, which include Word, Excel, Outlook, and PowerPoint as well as gaming applications like Xbox. However, Microsoft also offers Teams, cloud computing infrastructure solutions, and ERP applications.
Microsoft ERP
Microsoft’s legacy ERPs include Great Plains (GP), Solomon (SL), Navision (NAV), and Axapta (AX). All these products were acquired by Microsoft from various providers and were repackaged as “Dynamics.” While these products are still well-supported in the Microsoft channel, they are not the Company’s “go forward” applications. Fairly recently, Microsoft launched new cloud-based ERPs to replace their legacy products – MS Dynamics 365 Business Central and MS Dynamics 365 Finance and Operations (also known as Microsoft Dynamics 365 Finance and Supply Chain). In addition to core ERP functionality, the Dynamics 365 applications also incorporate artificial intelligence and robotic processing automation capabilities.
The upgrade path for GP, NAV, and SL is MS Dynamics 365 Business Central (BC) while Finance and Operations (or Finance and Supply Chain) is the replacement for AX.
Microsoft Dynamics 365 Business Central is the preferred enterprise resource planning solution for small to mid-sized businesses. Business Central is deployed in Microsoft’s Azure cloud environment. Business Central Essentials provides the basic features needed to run a business, from finance and marketing to warehousing and project management. Business Central Premium builds upon the functionality of Essential with the addition of service management and manufacturing features. The product’s price point is very attractive to growing businesses.
Microsoft Dynamics 365 for Finance and Operations delivers ERP solutions for large enterprises that need deep industry capabilities, complex configuration options, multi-company accounting functionality, and robust transaction processing capabilities due to high transaction volume.
Microsoft ERPs can be found in the largest of enterprises or start-up businesses, providing an entry point for small budgets but delivering international, best-in-class functionality for complex, international operations.
Microsoft Azure provides the core technical infrastructure for supporting over 200 products and cloud services and is built for scalability and flexibility. Its unique environment connects businesses from DevOps to business analytics to the Internet of Things and even virtual reality across several industries.
What Kind of Partnership Ecosystem Does Microsoft Have?
Microsoft has partners in all corners of the world, from Independent Software Vendors (ISVs) to device partners to Systems Integrators. The partner network is invaluable to Microsoft as it enables digital transformation and efficient growth for users.
Independent Software Vendors develop and sell separate software solutions that run on different platforms. Microsoft utilizes ISVs to drive innovation and provide specialized solutions to consumers that cannot be developed on a general scale.
Microsoft’s Device Partner Program provides support to partners who provide devices as part of their overall customer solution offering. Their program offers resources to partners in the form of enablement training, marketing and sales tools, and support resources.
System Integrators work to build custom autonomous systems for specific industries or businesses. These partners are engineering professionals providing support to users with their autonomous initiatives.
Why Does Microsoft ERP Win Over Their Competitors?
Microsoft wins ERP deals with consumers for several reasons, one being its recognizability in the market. As its revenue increases, Microsoft invests back into the business to provide ever-evolving solutions to its users. Users are heavily attracted to companies that are constantly improving their products. Microsoft’s innovative nature drives the creation of groundbreaking technology and the utilization of technology in ways that could never have been previously imagined.
Microsoft’s wide array of solutions also makes them appealing in the software market, providing an a la carte model. Flexibility is a prevalent feature of Dynamics 365, which is why so many users turn to it to run their basic operations.
Its solutions are also user-friendly. Microsoft’s consistent user interface is visible across its desktop applications and ERPs which makes users feel at home with the ERP instantly, winning Microsoft ERP deals. Other companies have an extensive investment in the Microsoft stack across their technology products and gravitate to Microsoft’s ERP to keep their technology investments consistent.
Conclusion
Microsoft’s ERP solutions are among the most prominent applications in the market as proven by solid re-investment, reputation, pricing, functionality, and adoption in the market. This lands them on top of their fair share of ERP selections. Its recognition globally and commitment to innovation continue to drive its growth, both vertically and horizontally.