LOS ANGELES, CA (July 28, 2009) Advanced Systems Integration (ASi) has been selected among hundreds of resellers from across the nation and will be featured in the August edition of Accounting Today and Accounting Technology magazines. A great honor especially in a year when a slowing economy is challenging small and midsized businesses, the featured VARs (Value-added Resellers) had to demonstrate they have what it takes to not only survive, but succeed, in the down economy. This annual distinction highlights firms that demonstrate extraordinary commitment and character, innovative marketing techniques and an exemplary level of service. The 2009 listing of Killer VARs will be available in the August edition of http://www.webcpa.com.
"We are proud to be a recipient of the "Killer VAR" award,” said Lisa Aschenbrenner, ASi-Marketing Manager. “As one of the original Damgaard Partners here in the U.S. we have been committed to the Microsoft Dynamics AX (Axapta) platform since 1997 and look forward to helping our customers profitably grow and gain market share.
Advanced Systems Integration, Inc.(ASi) is a Gold Certified Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) and Learning Solutions partner founded in 1991. ASi delivers comprehensive enterprise class applications that improve customer relations, enhance partner collaboration and create efficiencies across supply chains and business operations. ASi also offers industry specific extensions integrated with Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) solution. Based in Orange County, California, ASi serves California including the counties of San Diego, Orange, Los Angeles, Ventura, Riverside, San Bernardino, Alameda, Sacramento, San Francisco and Santa Clara. Please visit the company’s web site at www.advancedsystemsintegration.com.
Friday, August 21, 2009
Tuesday, August 18, 2009
What Is the Future of Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) in the Cloud? Being Upfront About the Obstacles
I am currently reading The Big Switch - Rewiring the world from Edison to Google by Nicholas Car. The book draws a colorful parallel between Thomas Edison's battle to power the world versus a "Google type" company's battle to power the emerging cloud computing technology shift. The book sounds a warning to the major on-premise solution providers such as Microsoft, IBM and Dell, as Nicholas Car ultimately declares that utility computing will forever change the computing landscape, and most important, is here to stay.
I mention this book because most of Microsoft's Worldwide Partner Conference (WPC) was focused on Microsoft's Software-Plus- Services (S + S) strategy, especially as relates to Windows Azure, Microsoft Online Services, Microsoft Dynamics CRM, and Microsoft Business Productivity Online Suite (BPOS). At the heart of Microsoft's strategy is the "power of choice". The strategy differs from pure Software-as-a-Service (SaaS) by attempting to achieve server/services symmetry by allowing businesses to move parts of their applications to/from terrestrial servers into the cloud. If you are not exactly familiar with the term "cloud computing" or Software-as-a-Service (SaaS), I have summarized the National Institute of Standards and Technology (NIST) definitions below:
•Cloud computing is a model for enabling on-demand, metered access to a shared pool of location independent configurable computing resources that can be rapidly provisioned.
•Software-as-a-Service (SaaS) is one of three (3) cloud computing delivery models where applications running on a cloud infrastructure are accessible from various client devices through a thin client interface such as web browser.
What is the future of SaaS for ERP applications like Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta)? What follows are some considerations.
Logically thinking about the typical procurement process for enterprise business applications such as Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta), the first and often most important decision is whether to own "capital expenditure" or rent "operational expenditure". This simple decision is often at the center of debate regarding on-premise vs. on-demand business applications. This single decision dictates how the transaction will be recorded on the company's financial statements. This single decision can actually have a tremendous impact on EPS (Earning per Share) financial ratios, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) and ultimately, the company's ability to raise capital and borrow future funds.
It appears to me that most CFO's prefer operational expenditures, or OPEX, because they relate to current revenue streams and often represent flexible, non-physical assets that typically do not lose value or become obsolete. OPEX often also generate immediate tax benefits by reducing corporate taxable income. With elasticity, scalability, cost and accounting on the side of the cloud computing, it is easy to understand why this new computing model is becoming so popular, so quickly. For example, Microsoft Dynamics CRM, the only Dynamics product currently available either on-premise or on-demand, just hit the 1 million user mark. The "power of choice" appears to be working with functional line of business (LOB) applications such as CRM and XRM.
While all this would seem to bode well for major ERP applications like Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) moving to SaaS, it's not so simple. Unlike CRM and XRM, moving ERP, most often the "System of Record," into the cloud involves greater complexities and risk, especially for larger enterprises with existing security, control and infrastructure. ERP systems house tremendous amounts of critical and highly relational master data such as customer, vendor, employee and products. This data often represents a competitive advantage and are vital to a company's success.
In order for a SaaS ERP offering to work for larger enterprises, much will have to be done in the area of regulation, compliance and law. At present no 1, 2 or 3 companies can claim to be running "the cloud" and no single entity has taken it upon itself to attempt to regulate such promising technology, which by definition will connect global economies.
Whatever shape or form the cloud eventually takes, the recent collapse of Wall Street demonstrates the need to address key business risks and remain transparent. Corporate executives must be very confident in accessing and quantifying the risk of unauthorized access or lost data, not to mention how conflicting state, federal and global laws will apply.
Whether referring to computing and storage, infrastructure or applications, the cloud has tremendous potential, but it is not without risk. Unfortunately, when it comes to mission critical business applications such as ERP, the model appears to be bit immature for many customers, and with too many questions left unanswered regarding security, control, regulation and speed. Some recent comments from other major ERP suppliers point to the same thinking:
•"If you look at the leaders, they don't make very much money and they've been at it for almost ten years. It's hard to point to any (SaaS) provider that's doing a good job of improving their profitability. I think that's what we are focused on before we scale the business. The last thing we want to do is have a very large business that is not terribly profitable and drags our margins down. Larry Ellison, Oracle CEO
•"We believe in some forms of (SaaS) but not as a core business foundation for its typical customer. It just wouldn't work. It has taken us 36 years to build a ‘core' on which modern, global companies can run their businesses, which is tailored to specific industries and offers a huge partner ecosystem. These foundations are very important to companies, they like having control of data. They don't want to leave destiny in someone else's hands." Bill McDermott, SAP CEO
Enterprise business applications such as Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) already consume many web-services, from applications perfectly suited for the cloud, such as e-commerce, sales tax, credit card and electronic data interchange. Until many of the other issues I have discussed are resolved, though, I don't forecast the demand for enterprise business applications in the cloud will change and without demand I don't anticipate Microsoft offering Dynamics AX (formerly Microsoft Business Solutions Axapta) on-demand. Don't be surprised however,to see certain Microsoft Dynamics ERP web-services become available online at Microsoft Dynamics Online http://www.dynamicsonline.com.
About Advanced Systems Integration Inc (ASi).
Advanced Systems Integration, Inc.(ASi) is a Gold Certified Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) and Learning Solutions partner founded in 1991. ASi delivers comprehensive enterprise class applications that improve customer relations, enhance partner collaboration and create efficiencies across supply chains and business operations. ASi also offers industry specific extensions integrated with Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) solution. Based in Orange County, California, ASi serves California including the counties of San Diego, Orange, Los Angeles, Ventura, Riverside, San Bernardino, Alameda, Sacramento, San Francisco and Santa Clara. Please visit the company’s web site at www.advancedsystemsintegration.com.
I mention this book because most of Microsoft's Worldwide Partner Conference (WPC) was focused on Microsoft's Software-Plus- Services (S + S) strategy, especially as relates to Windows Azure, Microsoft Online Services, Microsoft Dynamics CRM, and Microsoft Business Productivity Online Suite (BPOS). At the heart of Microsoft's strategy is the "power of choice". The strategy differs from pure Software-as-a-Service (SaaS) by attempting to achieve server/services symmetry by allowing businesses to move parts of their applications to/from terrestrial servers into the cloud. If you are not exactly familiar with the term "cloud computing" or Software-as-a-Service (SaaS), I have summarized the National Institute of Standards and Technology (NIST) definitions below:
•Cloud computing is a model for enabling on-demand, metered access to a shared pool of location independent configurable computing resources that can be rapidly provisioned.
•Software-as-a-Service (SaaS) is one of three (3) cloud computing delivery models where applications running on a cloud infrastructure are accessible from various client devices through a thin client interface such as web browser.
What is the future of SaaS for ERP applications like Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta)? What follows are some considerations.
Logically thinking about the typical procurement process for enterprise business applications such as Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta), the first and often most important decision is whether to own "capital expenditure" or rent "operational expenditure". This simple decision is often at the center of debate regarding on-premise vs. on-demand business applications. This single decision dictates how the transaction will be recorded on the company's financial statements. This single decision can actually have a tremendous impact on EPS (Earning per Share) financial ratios, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) and ultimately, the company's ability to raise capital and borrow future funds.
It appears to me that most CFO's prefer operational expenditures, or OPEX, because they relate to current revenue streams and often represent flexible, non-physical assets that typically do not lose value or become obsolete. OPEX often also generate immediate tax benefits by reducing corporate taxable income. With elasticity, scalability, cost and accounting on the side of the cloud computing, it is easy to understand why this new computing model is becoming so popular, so quickly. For example, Microsoft Dynamics CRM, the only Dynamics product currently available either on-premise or on-demand, just hit the 1 million user mark. The "power of choice" appears to be working with functional line of business (LOB) applications such as CRM and XRM.
While all this would seem to bode well for major ERP applications like Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) moving to SaaS, it's not so simple. Unlike CRM and XRM, moving ERP, most often the "System of Record," into the cloud involves greater complexities and risk, especially for larger enterprises with existing security, control and infrastructure. ERP systems house tremendous amounts of critical and highly relational master data such as customer, vendor, employee and products. This data often represents a competitive advantage and are vital to a company's success.
In order for a SaaS ERP offering to work for larger enterprises, much will have to be done in the area of regulation, compliance and law. At present no 1, 2 or 3 companies can claim to be running "the cloud" and no single entity has taken it upon itself to attempt to regulate such promising technology, which by definition will connect global economies.
Whatever shape or form the cloud eventually takes, the recent collapse of Wall Street demonstrates the need to address key business risks and remain transparent. Corporate executives must be very confident in accessing and quantifying the risk of unauthorized access or lost data, not to mention how conflicting state, federal and global laws will apply.
Whether referring to computing and storage, infrastructure or applications, the cloud has tremendous potential, but it is not without risk. Unfortunately, when it comes to mission critical business applications such as ERP, the model appears to be bit immature for many customers, and with too many questions left unanswered regarding security, control, regulation and speed. Some recent comments from other major ERP suppliers point to the same thinking:
•"If you look at the leaders, they don't make very much money and they've been at it for almost ten years. It's hard to point to any (SaaS) provider that's doing a good job of improving their profitability. I think that's what we are focused on before we scale the business. The last thing we want to do is have a very large business that is not terribly profitable and drags our margins down. Larry Ellison, Oracle CEO
•"We believe in some forms of (SaaS) but not as a core business foundation for its typical customer. It just wouldn't work. It has taken us 36 years to build a ‘core' on which modern, global companies can run their businesses, which is tailored to specific industries and offers a huge partner ecosystem. These foundations are very important to companies, they like having control of data. They don't want to leave destiny in someone else's hands." Bill McDermott, SAP CEO
Enterprise business applications such as Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) already consume many web-services, from applications perfectly suited for the cloud, such as e-commerce, sales tax, credit card and electronic data interchange. Until many of the other issues I have discussed are resolved, though, I don't forecast the demand for enterprise business applications in the cloud will change and without demand I don't anticipate Microsoft offering Dynamics AX (formerly Microsoft Business Solutions Axapta) on-demand. Don't be surprised however,to see certain Microsoft Dynamics ERP web-services become available online at Microsoft Dynamics Online http://www.dynamicsonline.com.
About Advanced Systems Integration Inc (ASi).
Advanced Systems Integration, Inc.(ASi) is a Gold Certified Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) and Learning Solutions partner founded in 1991. ASi delivers comprehensive enterprise class applications that improve customer relations, enhance partner collaboration and create efficiencies across supply chains and business operations. ASi also offers industry specific extensions integrated with Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta) solution. Based in Orange County, California, ASi serves California including the counties of San Diego, Orange, Los Angeles, Ventura, Riverside, San Bernardino, Alameda, Sacramento, San Francisco and Santa Clara. Please visit the company’s web site at www.advancedsystemsintegration.com.
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