Tag: Microsoft

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.

Inspire 2017 DC Recap

This week I went to the Microsoft Inspire conference that was held in Washington DC. It was my first time at this particular conference, and I have to say it was a bit overwhelming. I am used to conferences that have maybe upward of 1,000 attendees, with a single Expo hall. This conference had well over 10,000 attendees, and the expo area seemed like it occupied an entire conference center.

Security was super tight, so it took for ever to get through, and we were waiting for long periods of time in the sweltering DC heat. We had accounted for an extra hour to find a good seat, and we were too late getting in, the keynote had already started.

Our main reason for being there with Cloud Ready Software was to attend the announcement for the ISV Development Center program, because we are one of the 7 initial companies that were selected by Microsoft to be part of this program.

Some things that I took away form the conference is that Satya Nadella is a really captivating speaker. It was a pleasure listening to his keynote and learn about the new initiatives out of Microsoft. Two of the most important ones that stood out for me is Microsoft 365 and the one commercial partner program.

Seeing Microsoft’s corporate leaders present their vision was inspiring to me. Connecting things together in ways that you just don’t think about is just mind boggling. There was a demo of a drone that does a physical inventory and picking. There was an example of how you can subscribe to a store’s discount program, and it can track your movements and know when you are near one of the stores, and invite you in for a good deal. The last one is kind of creepy, but at the same time it would be awfully convenient to walk past my local music store and get a reminder that it’s been 2 months since I last purchased guitar strings, and to come in for a good deal on something related.

I have to say I was woefully unprepared to be at Inspire. We booked our tickets just a couple of days in advance so we did not have any time to really prepare. We were there mainly for the ISV Development Center program. We will definitely go to next year’s event in Las Vegas though, and I will try to pay more attention, and to be more elaborate when I write about it.