Microsoft, Tyler Technologies Team On Public-Sector Financial Apps

Dallas-based Tyler specializes in financial software for public-sector institutions, such as local and state governments, and it sells its .Net-based software direct. Together, Microsoft and Tyler will build Axapta-based solutions for those types of accounts.

Both companies plan to sell the resulting products to their customer base, Tyler via its direct-sales team and Microsoft via its 1,400 authorized Dynamics AX partners worldwide.

"This is really the outcome of us realizing how important public sector is to Microsoft Dynamics. It's a multibillion-dollar market worldwide," said Glenn Bray, director of vertical strategy for Microsoft Dynamics.

Bray acknowledged that although Dynamics AX has a good record in commercial accounts, there are "known gaps" in the public sector. "We will collaborate to jointly develop core accounting fundamentals to support the public sector in fund accounting, grant management, encumbrance, etc.," he said.

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The development work will take place in Renton, Wash., where Tyler has offices, said Dusty Womble, executive vice president of Tyler. The companies expect to have deliverables in the 2009 time frame.

Tyler, which typically competes with SAP, PeopleSoft (now part of Oracle) and Lawson, will continue to sell its .Net line as well, according to Womble.

"The attraction for us is twofold," he said. "First, there's the association with Microsoft. It will help our profile when we're chasing large, tier-one accounts. With Microsoft standing behind this product, it adds to our credibility. And [second], their channels will help -- especially internationally, where we don't have a large presence."

Axapta, which Microsoft acquired in its Navision buyout five years ago, has strong presence in Europe and is seen by many as the company's best response to SAP Business One.

Also, Axapta is the poster child for Microsoft's Industry Builder initiative, in which Microsoft works closely with ISVs on vertical implementations. The resulting applications are on Microsoft's price list with branding and certifications, but are sold through VARs and integrators.

This story was updated Thursday with the number of Axapta partners.