Microsoft Dynamics ERP Is Moving toward The Azure Cloud & Embracing The "SaaS Hybrid" Model

Last week, Microsoft made two announcements in regard to its Dynamics ERP suite: they will be updating their online ERP package, and their ERP hosting business has more than doubled over this past year as they move their software into the Windows Azure services cloud. They will also be adding two new online services to the Dynamics ERP suite: Sites Service and Commerce Service, which are also built on the Azure platform.

In early 2010, the Azure services cloud is scheduled to exit beta testing, and Microsoft Dynamics ERP’s GM, Crispin Read, noted that many of their testers have enjoyed the option of moving certain apps to the cloud while maintaining some on-premise services. In terms of the competition, general accessibility to the Azure cloud is none too soon, and will most certainly help them compete against more established ERP providers like SAP and Oracle.

The Sites Service for Dynamics ERP will provide developers the ability to create and manage websites from within the ERP platform. It will give the back-office ERP users the access to marketing campaigns, as well as the ability to get quotes from business partners and general access to what most would consider a CRM-related community.

Also intended to put developers at ease, the Commerce Service will enable them to build multi-channel commerce systems that link ERP products with e-commerce technologies. Microsoft will also be expanding their Payment service within the Dynamics ERP platform, and it will let users process sales transactions across multiple channels.

While Salesforce.com has been entirely SaaS-based and therefore has a leg up on Microsoft, it will be interesting to see how SAP and Oracle—as companies that have been slow to move to the cloud—respond to their continual movement of Microsoft Dyanmics ERP products to the Azure cloud. Microsoft is smart to acknowledge the growing desire for both hosted and on-premise ERP, but at the same time they are making some really great products to attract more users to the cloud.

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