Tag: ISV

Microsoft the ISV

Microsoft published their new Shopify connector today. It’s great to see them invest resources into what is hopefully the gold standard of integrating with these external services. However, I have serious doubts about whether this is such a good idea.

ISV Partner Channel

In the runup to having BC in the cloud, the story was that the partner channel should refocus their efforts into becoming ISV’s. Rather than one-time bespoke systems for individual customers, they want the partner channel to create extensions that could be used by the masses.

This was (is?) a logical continuation of their story of verticalization that we had heard throughout the past two decades. In itself nothing that I don’t agree with. I too think that having re-usable extensions in a marketplace is a solid way to go. Microsoft’s argument was that they need to focus on the base product, a core set of functionalities. The partner channel would then be free to add functionality, to extend the base product.

There’s Just a Tiny Thing…

One thing that caught my ear was a statement that said that Microsoft does not want to provide specific, industry focused expertise. They said they have no interest to build integrations with external systems. Rather than having Microsoft provide integrations or other specialized functionalities, they would leave this up to the partner channel. There could be an ACME Rockets integration created and supported by an ISV, or even by ACME themselves.

Great soundbite showing great potential, and it sold well. Many partners listened to Microsoft and started creating lists of functionalities that they have know-how for. Many VARs dove right into their inventory of “add-ons” with the intent to turn those around into the next AppSource apps.

I know personally of three separate partners that have invested a lot of time and money into developing Shopify integrations. All three of those partners are LIVID with Microsoft today. The promise was that Microsoft would stay out of this type of functionality, and today’s release is one of an unknown number of apps that we will see come out of Microsoft.

Besides the fact that Microsoft is now on the hook for maintaining this app, they have effectively cut off the potential from the ISV channel. Their work in progress as essentially turned into a big fat tax write-off.

What Next?

Two out of those three partners had already been looking at alternatives to their NAV/BC practice, and I can’t say that I blame them. Licenses are no longer capital investments. Margins are going down with lower subscription fees, so you can no longer afford to focus on smaller businesses as clients. Having to go through a primary CSP means that you have to share what little margin remains. The stack has become much more complex, so you have to hire experts for everything.

One of the last things that are left is to develop your own IP and publish on AppSource. Would you decide to invest in new products if there is a real chance that Microsoft is working on the same thing?

Personally, I think Microsoft is making a huge mistake by creating this type of app. I am not sure if they are capable of taking on the support, and that they will be maintained properly. I am also doubtful about the cooling effect this will have on the partner channel’s willingness to invest in new products.

Most important though is that I am just flabbergasted that they prioritized something like this, when there are SO MANY things still left to improve in the base product.

As I am writing this I am struggling to find a good way to finish this post, I’m clearly not done thinking about this. Let me know in the comments what you think.

CRS is an ISV Development Center

After months of intense scrutiny by Microsoft, and after having kept this quiet for a while once we knew that we were going to be accepted, we’ve finally come to the announcement part at the Microsoft Inspire conference that was held this week in Washington DC. I am very proud to say that we are one of only a handful of companies that have Microsoft’s trust to be a partner to their ISV partner channel.

My company, Cloud Ready Software, is one of only 7 companies globally to be selected in the initial group of ISV Development Centers, of which only 4 have a real competency in Dynamics NAV and Dynamics 365 for Finance and Operations Business Edition.

The program was founded by Microsoft to be a buffer for getting the ISV partner channel’s IP into the cloud. There is only a small number of companies worldwide in the Dynamics 365 area that really focus on building products for the cloud. Cloud Ready Software had been helping partners develop their products for the cloud for years, and we have held countless workshops to teach the partner channel about the latest technologies. It seemed like a great fit for us to apply for the program, and we are very excited about the prospect of making this our niche.

Essentially, our job is to help ISV partners in any way we can to get their IP into the cloud. We can do workshops and training for their staff, but we can also participate in projects directly. We can be a way to extend bandwidth in analysis, design, or development efforts, and we can also help with project management and/or guidance in any capacity necessary.

As an ISV Development Center, we have access to the latest technologies, and we are actively involved in developing and promoting those technologies into the partner channel. We can even help be part of a proof of concept to prove the viability of new technologies in cutting edge projects.

It is important to note that we are the partner’s partner. We are not after end users, in fact one of the stipulations of being in the IAV Development Center program is that we are not allowed to work directly with the end user without prior authorization by the partner. Should an end user company contact us, we are obligated to get in touch with their partner of record, to make sure that there is no conflict of interest.