Dynamics Wave Two Promises Consolidated Product

Along with updates to each of Microsoft’s four enterprise resource planning (ERP) applications, a new ERP product could emerge as part of Dynamics Wave Two, the second phase of a project designed to bring consistency across the Microsoft Business Solutions portfolio and lay the foundation for eventual consolidation. The new product will combine functionality from all four existing ERP applications, but its architecture, services, and programming interfaces will probably most resemble those of Dynamics AX, formerly called Axapta. This could make the transition to the new product difficult for customers and partners of products other than AX.

One ERP Product the Goal

Shortly following the acquisitions of Great Plains in 2001 and Navision in 2002, Microsoft began discussing plans to consolidate the four separate but similar ERP products—now called Dynamics AX, GP, NAV, and SL—that those acquisitions netted. A single ERP product serves several business objectives for Microsoft Business Solutions (MBS), which has only recently attained profitability despite steadily increasing revenue. (Microsoft’s financial results for the fourth quarter of its fiscal year 2006 are summarized in “Volume Licensing Strong in Q4’06“.) Most obviously, it will eliminate the redundant development efforts that exist today among the group’s four overlapping product lines. In addition, a more coherent strategy centered on one product should simplify Microsoft’s marketing and partner efforts and improve the efficiency of its sales channel, allowing it to attract new customers and partners.