Microsoft Dynamics in the complexity vice

by admin on October 24, 2006

in General

Fellow Irregular Josh Greenbaum offers a reality check regarding Microsoft Dynamics:

The prospect is clear: when you take the ubiquity of Office – 450 million users – and tie it to the enterprise applications functionality of Dynamics, you’ve got a pretty potent competitive weapon.

Score one against SAP BusinessOne.

The emergence of Dynamics into the realm of complexity is one of the main obstacles the company has created for itself, and it’s going to be hard for it to stop digging this hole.

That’s a monster issue for mid-market vendors. The mid-market is much more aggressive when evaluating bang per buck. Keeping it as simple as possible is a lot more appealing than lots of moving parts. And Dynamics is becoming complex. In the UK, dumping the Navision brand has not helped. A bad move in a region where Navision has traditionally been a strong competitor.

Practitioners acting in the consulting field tell me Microsoft is fading off the radar. Increased complexity will only exacerbate that trend. All part of not understanding the market they’re playing in I’m afraid to say.

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Sorry - should have been clearer - brand identity got lost in the mix in the minds of many people.

Dennis,

By "In the UK, dumping the Navision brand has not helped." do you mean that MS no longer sells Dynamics NAV in the UK or do you mean it was an error on their part to change the name from Navision to Dynamics NAV?

Thanks

I agree with Josh but if Dynamics (Navision) is below the radar then the other players have a real problem:

Sap B1 has hardly any customers in the UK - 1600 ish in the whole world and after a few years trying

Sage MMS has only sold 400 ish systems, mainly upgrades to L100/50 users in 2006. L500/1000 a fraction of this in the UK.

With a replacement coming which will probably require a reimplementation and significant cost only a fool would buy Dynamics today.

The real issue is that almost all these solutions do not give the user what he wants at a price he is prepared to pay in the SMB area.

I read Josh Greenbaum's article, and if correct (>15 servers?!) Microsoft have well and truly lost the plot here. I'll second your "keep it simple" mantra. It is my experience that the SMB market want their software to "just work". Software without administrative overhead and without hours of endless tweaking. Gosh. This has come as a surprise, as I was really impressed with some of the earlier research in this space by Microsoft.

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