Microsoft Dynamics Grows Up

Seven years after Microsoft spent $1.1 billion to buy Great Plains Software, that acquisition is finally paying some major dividends. The latest example: Electronic Data Systems (EDS) has agreed to sell, service and support Microsoft Dynamics — the next generation of Great Plains’ software. EDS’s backing is the latest in a growing list of key endorsements for Dynamics.

Getting to this point hasn’t been easy for Microsoft. Great Plains focused mainly on client-server business software when Microsoft announced plans to acquire the company in 2000. Since that time, Microsoft — backed by dozens of partners — has re-branded and revamped Dynamics to work in a range of settings, including increasingly popular software as a service (SaaS) configurations.

In recent months, Microsoft VARs, partners and managed service providers have been busy getting cozy with one another, inking alliances in a bid to cash in on the growing interest in Dynamics.

Software developers also are jumping on the Dynamics bandwagon. Idera,  for one, has pushed beyond its SQL Server tools business to introduce a worldwide channel program for Microsoft Dynamics resellers and integrators.

Still, The VAR Guy isn’t suggesting that Dynamics is a run-away market winner.  Salesforce.com is still the SaaS company to beat (look at their recent financials), and open source players like SugarCRM are doubling their annual revenue.

But seven years into the game, Microsoft is finally showing considerable momentum in the business application market.