Microsoft Aims To Lift MBS To New Heights

As the company kicks off its Velocity Worldwide Partner Conference in Toronto, one message will be that the Axapta, Great Plains, Navision and Solomon lineup of financial applications are not just for mom-and-pop shops. Indeed, Microsoft will bump up its investment to move more of these applications into the Corporate Account Space, sources said.

"is doubling, more than doubling, their investment in the CAS/MBS selling org," said one Midwestern partner. "Last year, they gave a quota [in that space] but didn't empower anyone to make it happen. This year, there will be massive investment in selling and field resources to make sure customers in those accounts are served by MBS," he noted.

MBS COO Orlando Ayala recently reiterated his belief that there are 40 million potential customers out there for these financial products. If true, that's a lot of opportunity for a relatively small group. There are just 2,700 U.S. MBS partners vs. 300,000 total Microsoft partners. Should those partners re-up for the new program, they will clearly be in the spotlight as Microsoft tries to boost sales volumes of its ERP lineup.

Solution providers say Ayala's appointment and Dan English's move to MBS and Microsoft's Small and Midmarket Solutions and Partners group could bolster CAS sales. English has long worked with Microsoft's Large Account Resellers, which service enterprise accounts and specialize in volume license management.

"We're increasing our focus with MBS in the CAS over the next 12 months. This isn't a change in strategy, but will represent an increase in effort," said Don Nelson, general manager of managed partners at Microsoft.

Microsoft will also continue to fill in details about its MBS competencies, which will officially launch this week. It has already reassured anxious MBS authorized partners that the ERP lineup will continue to sell through the authorized channel only at least for the foreseeable future. In May, the company said its new MBS Solution Provider Agreements, which had been good for a year or less, will be extended to two years.

Microsoft executives, aware of how acutely sensitive MBS partners are to change, have been careful to talk out big strategy shifts in advance. The fact that MBS Senior Vice President Doug Burgum now reports to CEO Steve Ballmer signals how critical business applications are to Microsoft's growth strategy.

"This is the year of focus. With Steve really taking the reins and Orlando at the COO post and Doug's vision, MBS is poised for growth," said Andy Vabulas, CEO of IBIS, a Norcross, Ga., solution provider.