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Microsoft Announces New Dynamics ERP Online Services

November 19, 2009

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REDMOND, Wash (RPRN) 11/19/09 — Customers can now combine online services with on-premise ERP or on-demand ERP to quickly increase business capabilities.

— Microsoft Corp. today announced a collection of online services that can be attached to its Microsoft Dynamics enterprise resource planning (ERP) solutions, including a new Sites Service built on the Windows Azure platform, a new Commerce Service, and an expansion of its Payment Service. In addition, the company revealed that its Microsoft Dynamics ERP hosting business has more than doubled in the past year, demonstrating strong uptake by partners to deliver Microsoft Dynamics ERP via on-demand and subscription-based hosting models as well as complementary services.

“Our customers increasingly appreciate the option of moving certain applications and services into the cloud while maintaining an on-premise option for their ERP solution,” said Crispin Read, general manager of Microsoft Dynamics ERP. “Providing this choice and flexibility is a competitive advantage for us and our partners around the world.”

The Sites Service allows customers to seamlessly create and manage Web sites within the Microsoft Dynamics ERP application. For example, people can easily create landing pages for marketing campaigns, dedicated request for quote sites to get quotes from business partners, sites for product registration information and customer feedback, human resources sites for job recruiting, and sites on anything that the customers would want to reach out to their community on. Sites Service capabilities will include embedded intelligence and optimization models, which provide analytics to help customers make the most of their marketing efforts all within the context of their Microsoft Dynamics ERP application.

Another new service, Commerce, extends multichannel commerce scenarios by providing a link between the ERP products and different e-commerce opportunities such as business-to-consumer e-commerce marketplaces, dedicated e-commerce storefronts or built-in shopping cart functionality. This enables customers to list products and accept orders from a multitude of places, all from one easy-to-use interface.

Lastly, Payment enables customers to process payment transactions from the Microsoft Dynamics ERP interface across multiple channels, including e-commerce, point of sale and call center transactions. The Payment Service currently works with leading payment processing services, including First Data Merchant Services Corporation, for all major credit cards, such as Visa, MasterCard, American Express and PayPal. As part of today’s announcement, Microsoft shared that the company has recently signed agreements with CyberSource Corp. and Pensio to provide these services to its ERP customers in the U.S. and Europe, with more agreements forthcoming.

“We are excited to be working closely with Microsoft as it extends its ERP offerings to allow for online capabilities such as payment processing and e-commerce,” said Michael Bolton, partner at Keyora Inc. “More customers are demanding speed to market. This move by Microsoft can help increase its competitiveness.”

There are now more than 150 partners delivering subscription-based Microsoft Dynamics ERP solutions in geographies around the world, with strong momentum for new partners joining the program.

“The ability to provide Microsoft Dynamics ERP cloud solutions to Microsoft partners worldwide is central to our business strategy,” said Herb Prooy, CEO of SaaSplaza, a Microsoft hosting partner. “Our partners appreciate the ability to move certain of the customers’ applications into the cloud while maintaining an on-premise option or any mix of these. This option protects their current investment while getting them ready for the future, something that other vendors do not provide today. It’s been a real competitive advantage for us at SaaSplaza, our partners and their customers as well.”

As further evidence of customers’ desire for choice in deployment, Saugatuck Technology Inc., a Westport, Conn.-based research firm focused on emerging and disruptive technologies, revealed that software as a service (SaaS)-based solutions are being increasingly linked with on-premise data, applications and processes through Web services-based integration APIs, such as those contained in Microsoft Dynamics ERP, and that although most SaaS vendors with on-premise and cloud-based offerings will not have interoperating versions, or seamless data compatibility through 2011, Microsoft Dynamics ERP will be among the handful of first-wave “hybrid” exceptions.*

The new Microsoft Dynamics ERP Sites and Commerce Services are expected to be available in the first half of 2010, with the additional payment service providers available in the first quarter of 2010. More information about the details of Microsoft’s online ERP strategy, or the new online services being announced today, can be found at http://www.microsoft.com/dynamics/en/us/erp-software-plus-services.aspx.

About Microsoft Dynamics

Microsoft Dynamics is a line of easy-to-use, integrated and adaptable ERP and CRM applications that enable business decision-makers to quickly respond to market shifts, take advantage of new trends, increase their competitive edge and drive business success. Microsoft Dynamics solutions are delivered through a world-class network of partners who provide specialized services and additional innovation to help customers excel in their industry.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

*Saugatuck Technology Report: Key Trends in SaaS/Cloud: Clearing the Air; Oct. 20, 2009

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