Saturday, December 12, 2009

Microsoft's Dynamic New Approach to Professional Services Automation

With the recent re-branding of the Microsoft Business Solutions product line as Microsoft Dynamics, Solomon, Microsoft's flagship professional services automation (PSA) solution for the small and medium business (SMB) market, has been repackaged as Microsoft Dynamics SL. Microsoft Dynamics SL version 6.5 extends the solution's prior functionality through its business portal, as well as by offering new modules for purchase requisitions and bank reconciliations. Moreover, Dynamics SL offers its clients extensive project portfolio management (PPM) capabilities with its real time bi-directional integration with Microsoft Project Server 2003.

Replacing the old Project Green strategy, the new Microsoft Dynamics initiative will align its product line of business solutions, including Microsoft Dynamics SL, with its research and development (R&D) efforts in two waves. The first wave, which is underway and will continue into 2007, involves re-branding all business solutions under the Microsoft Dynamics banner, and developing these products to adopt a similar look and feel in terms of their interfaces and their usage of the business portal. The second wave will deliver a single Microsoft Dynamics solution that combines best-of-breed functionality from each product line by the end of 2008. To help its clients with the transition, Microsoft has put in place its Transformational Assurance plan that will allow users to migrate to the Microsoft Dynamics solutions at their own pace.

Eventually, Microsoft likely will absorb its PSA product strategy into its Microsoft Dynamics product strategy, providing a unified solution that will serve the various vertical markets requiring financials, enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM), and PSA solutions. However, the question remains: will Microsoft move in the direction of offering a single integrated PPM solution for service organizations by embedding Microsoft Project Server with the Microsoft Dynamics product line, or will it continue to offer distinct solutions, integrating Microsoft Project where needed? In either case, the Microsoft Dynamics product line will remain compelling to SMB organizations by continuing to offer a single technology that provides comprehensive PPM capabilities through Microsoft Project Server.

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