Microsoft To Offer Dynamics ERP As A Cloud-Based Service Through Azure
Microsoft (NASDAQ:MSFT) is one of the largest enterprise software makers, but has been a relatively late entrant to the on-demand enterprise software market. It already has a cloud computing platform, Azure; a cloud-based version of Office, Office 365; and has announced that it will soon launch a cloud version of Dynamics ERP through the Azure platform. Microsoft said that it may unveil its first Dynamics ERP cloud implementation as a subscription-based offering by the end of 2012. [1]
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Microsoft will target its cloud-based version of Dynamics ERP at small businesses, capitalizing on the rapidly growing cloud-based enterprise software market that is driving the overall growth in enterprise software sales. Its major competitors in the cloud ERP market are Oracle‘s (NASDAQ:ORCL) Fusion ERP, SAP‘s (NYSE:SAP) Business ByDesign and Salesforce.com‘s (NYSE:CRM) new ERP apps by Infor.
It will offer Dynamics ERP for public, private as well as hybrid clouds, depending on the customer needs. With the private cloud Dynamics ERP offering, it hopes to attract even conservative companies who prefer to keep their data secure on their own servers. Microsoft will also update Dynamics CRM Online with new features including social capabilities for customer service.
Dynamics is an important part of Microsoft’s Business division, which also includes its most profitable product offering – Office. Office and Dynamics together account for nearly 37% of the $38 Trefis price estimate for Microsoft, which stands nearly 15% above its current market price.
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Notes:- Microsoft Inches Closer To Delivering Cloud-Based ERP, InformationWeek [↩]