Microsoft Dynamics ERP Sets Its Sights on The Mid-Market

Today Microsoft announced the acquisition of four technologies for its MS Dynamics ERP product—specifically the Dynamics AX platform—with the intention of providing core industry functionality for that platform’s applications. Dynamics ERP helps businesses manage financial and project accounting, supply chain, field service, and HR business processes; AX is one of four platforms within the Dynamics ERP line and caters to midsize to large organizations.

From Fullscope, Microsoft acquired a process manufacturing solution that provides integration of business processes across individual manufacturing and process manufacturing. From Computer Generated Solutions, it gained a professional service solution aiming to deliver a single system to manage projects and resources, execute financial transactions and customer billing, and match resources with client assignments. Lastly, there were two retail-related acquisitions from LS Retail and To-Increase Denmark A/S, to allow point-of-sale management and merchandising capabilities.

Mid-market customers tend to seek customizing applications to meet end-user needs, and these acquisitions will expand customization abilities. Instead of having to build out functionality internally by adding other solutions to their ERP application, Dynamics AX users will have one tight, contained system. These AX acquisitions also provide a vertical focus via implanting industry functionality directly into the application. Attention to this core functionality sets user focus on the last stretch of the innovation process—which is believed by some to be the most significant business stage. Given that Dynamics AX was already the Microsoft ERP platform most competitive with SAP’s and Oracle’s mid-market solutions, the prospect of this new Dynamics product certainly ups the ante.

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