Kennedy said that when Microsoft acquired Great Plains Software, which eventually became Dynamics GP, the ERP unit struggled when Microsoft tried to integrate it too closely with the rest of the company, eventually structuring it as a more independent operation. That earlier experience could raise a red flag if Microsoft is pulling the Dynamics business back into its core.
Kennedy said a reorganization like the one Microsoft is undertaking can cut both ways for competitors like NetSuite, causing uncertainty for customers but also potentially making the restructured company more effective if the reorganization achieves its goals. "It gives us reason to watch things closely," Kennedy said.
Kennedy also noted that while NetSuite and Microsoft compete in the ERP and CRM applications arena, the two company's announced a "cloud alliance" in May under which the companies integrate NetSuite's ERP applications with Microsoft's Office 365, Azure and Windows software. The reorganization "actually makes it easier for us to work with Microsoft as a partner," Kennedy said.
PUBLISHED JUNE 17, 2015