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11 Apr 2011
Microsoft has promised that customers will soon have the ability to run its Dynamics ERP applications in the cloud.
The company made the announcement at its Convergence 2011 conference in Atlanta on Monday.
“We’re helping you stay ahead of the curve and ahead of the industry,” Kirill Tatarinov, corporate vice president of Microsoft Business Solutions, said during the opening eynote.
“I’m proud to announce that the next generation of Dynamics ERP technology will be taken to the cloud.”
Tatarinov spoke of Microsoft’s experience in the cloud so far, mentioning MSN and the Windows updates that patch many devices daily.
Microsoft has been offering its Dynamics portfolio since 2003, but all of the applications with the exception of online CRM have only been available to install on-premise.
When Microsoft Dynamics enters the on-demand ERP market, it will compete with the likes of NetSuite and SAP Business ByDesign.
Microsoft has not yet said when the new on-demand applications will become available, nor how many customers it is expecting to request the new offering.
However, the firm did say that the applications will run on the Windows Azure platform and that Microsoft will offer customers a Dynamics Cloud Partner Profitability Guide which offers key success factors and an execution roadmap.
Dynamics ERP and CRM applications are delivered through a network of resellers and partners that provide specialised services.
Microsoft said that its channel will soon be able to showcase cloud-enabled vertical solutions, add-ons and services in the Dynamics Marketplace to make it easier for customers to buy solutions that fit specific business needs.
The Dynamics customer base has increased from 30,000 10 years ago to 350,000 customers today, according to Microsoft.
Microsoft also plans to give customers a first look at its updated Dynamcis AX 2012 release at the conference.
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Cloud ERP for heathcare
Migrating Microsoft Dynamics AX to the cloud is potentially a good move. The cost of purchasing Dynamics AX has always been a concern for customers. Cloud based applications are generally less expensive, so this could remove that hurdle to adoption. I see great opportunity for Dynamics AX (deployed on site or hosted in the cloud) in the healthcare market. Its ability to accept messages from both clinical and admin applications can support trusts (and soon GP consortia) by providing data on the success or otherwise of patient treatment, success or otherwise of healthcare providers and the cost of treatment. However, assuming that the AX cloud version will be available in England, from a healthcare perspective, a cloud application could pose another problem. Today, Microsoft's data centre is based in Ireland. The NHS in England has a policy that patient data must be held in England. This leads me to suggest it will be necessary for Microsoft (and other cloud vendors) to enable resellers and integrators working with the English NHS to establish private clouds or set up an ERP cloud service using English data centres.
Posted by: Paul Malcolm, Simpl UK 29 Jun 2011