Navision Solution Providers Elated By Possible Microsoft Bid

Microsoft Navision

Last week, Financial Times reported that Microsoft was in negotiations to acquire the Danish company, a report that drove Navison's stock up more than 21 percent in local trading, according to the Associated Press. Neither company would confirm the report, but Navision released a statement saying it was "considering a possible strategic transaction."

Many of Navison's U.S. partners also sell Microsoft's Great Plains accounting software, a competitive offering, and say the marriage would give Microsoft a commanding, global position in financial software for small- and midrange business markets.

"The two of those together would be like being in the cola business and offering both Coke and Pepsi," said Bruce Ciarleglio, vice president of marketing for the Aston Group, North America, La Jolla, Calif.

Aston Group, an SMB consulting firm with 44 offices worldwide and based in Copenhagen, Denmark, is Navison's largest reseller and also a large Great Plains partner. The company has been buying Navision solution providers in the United States over the past few years.

"I view it very positively. I would love to see it go through," Ciarleglio said. "And I believe Aston would be sitting on something very pretty if it does go through."

Navision offers two financial packages in the United States, one called Attain that competes with Great Plains in the midrange market, and another called Axapta, an enterprise ERP product that resellers said was pitted more against J.D. Edwards and Lawson Software. Both include integrated CRM capabilities. Navision sells exclusively through channel partners, solution providers said.

Solution providers said the deal makes sense for both companies. Navision is one of the top-recognized ERP vendors in Europe, a market in which Great Plains has had trouble penetrating. Navision, meanwhile, has about 300 North American resellers concentrated in certain markets but lacks strong name recognition.

"One of the big problems with Navision is that it's not very well branded in the United States," said Al Adamsen, principal at KLH Consulting, Santa Rosa, Calif. "When we get to the table, we do very well. It's just a matter of getting to the table with Navision."

Other Navision partners also believe an acquisition by Microsoft would give Navision instant credibility and a big boost in the U.S. market.

"We've observed what Microsoft did with the acquisition of Great Plains, with the resources and commitment, and we think the Navision acquisition would be more of the same," said Joe Baird, president and CEO of CBH Consultants, Irvine, Calif., which also sells both Navision and Great Plains software to SMB clients.

Partners said they would expect Microsoft to maintain both products in the market. While they compete in the same space, they also each have their own strengths and niches. "When you understand the products and understand where they fit, it's very rare we go to a customer and say either one will work," Ciarleglio said.

He said Navison's strategy is to deliver the basics and good functionality, but not all the bells and whistles, and then provide a package that's flexible and easy for clients to customize to fit their operations. He said Great Plains offers a more complete, mature and therefore more expensive application that is also more difficult to customize.

"We don't position the products head-to-head," Baird said. "We see Navision for specific vertical markets that Great Plains doesn't have and vice versa. Each has their strengths and weaknesses and we position them appropriately."