Microsoft reorganization leaves Dynamics in a sweet spot
Analysts: The Dynamics business application family has emerged as a conduit to push Microsoft's other technologies into enterprises
IDG News Service - Microsoft's sweeping company reorganization may have some insiders feeling jittery about the future, but it's doubtful that the vendor's Dynamics business applications division or its customers need to worry.
While Microsoft CEO Steve Ballmer didn't expound on Dynamics at length in a memo about the changes released Thursday, what he did say was telling.
Ballmer's plan calls for "one Microsoft" focused on "shared goals," with engineering divided into four categories: operating systems, applications, cloud and devices.
However, "we will keep Dynamics separate as it continues to need special focus and represents significant opportunity," Ballmer added.
Ballmer also maintained Kirill Tatarinov, executive vice president of Microsoft Business Solutions, as head of the Dynamics business.
The only significant structural change for Dynamics will involve "dotted line," or secondary reporting relationships between Tatarinov's team and higher-level executives. Specifically, Dynamics product executives will also report to Qi Lu, head of applications and services engineering; its marketing head will report to Tami Reller, who now leads marketing for Microsoft; and its sales chief will report into chief operating officer Kevin Turner's group.
"I don't think the dotted-line relationships imply any lack of confidence in [Tatarinov]," said analyst Frank Scavo, managing partner of IT consulting firm Strativa. If there had been, the reorganization would have been a natural time to make a leadership change, he said.
If anything, the reporting change will only help Dynamics better align itself with the broad strategy Ballmer is trying to execute, said analyst Michael Krigsman of consulting firm Asuret.
While there have been rumors of Microsoft selling off the Dynamics unit because it wasn't a large enough business, with Thursday's announcement "it's clear the business apps market remains important to Microsoft," Krigsman said.
And that's not just because of the potential for growth in Dynamics product sales alone, according to Scavo.
When it comes to products such as Windows Server, Office or Microsoft Exchange, "those deals are all basically inside the IT organization," Scavo added. "The salesman is lucky if he talks to the CIO let alone the CEO."
It's only with Dynamics' ERP (enterprise resource planning) and CRM (customer relationship management) software that Microsoft can "get into more strategic conversations with the customer," particularly with chief financial officers, chief marketing officers and CEOs, Scavo said.
Microsoft's stated goal, even before Ballmer's reorganization plan, was to bring Microsoft technologies such as Yammer and Skype together with Dynamics.
To this end, expect Microsoft to also use Dynamics as a "rallying point" for selling a wide range of its technologies to customers, from Office and SharePoint to Windows Azure said analyst Ray Wang, CEO of Constellation Research.
- Microsoft launches toolset for capturing 'ambient intelligence'
- Microsoft kicks off sales of lower-priced Office subscription in bid for iPad dollars
- At Build, mobility gets a boost with universal Windows apps
- Microsoft gets strategic with its Enterprise Mobility Suite
- Microsoft sketches out final Windows XP security updates for next week
- Microsoft teases touch-first Office for Windows
- Cortana's voice is synthesized in part from an AI character in Halo
- Hell freezes over: Microsoft makes Windows free for some devices
- Windows Phone 8.1 confirmed, with Cortana digital assistant
- Ex-Microsoft employee pleads guilty to trade secret theft
- Path Selection Infographic Path Selection Infographic
- Hyperconvergence Infographic A wide range of observers agree that data centers are now entering an era of "hyperconvergence" that will raise network traffic levels faster...
- Preparing Your Infrastructure for the Hyperconvergence Era From cloud computing and virtualization to mobility and unified communications, an array of innovative technologies is transforming today's data centers.
- Increase IT Performance from the Enterprise to the Cloud with WAN Optimization Massive consolidation and data mobility, enabled by virtualization, have radically altered how we build servers, design applications, and deploy storage for the emerging...
- Live Webcast
Transforming Finance, Procurement and Supply Chain Effectiveness with Cross-Functional Analytics
Date: May 6th, 2014
Time: 1 PM EDT
Attend this Webcast to find out how Oracle's packaged analytic applications enable line-of-business managers to examine all...
- Video Stream Quality Impacts Viewer Behavior This scientific white paper, using statistical data from Amakai's streaming network, analyzes how changes in video quality cause changes in viewer behavior.
- Service-Enabling CICS Applications: Best Practices This informative webcast provides an informed, thorough look into CICS service-enablement options and how they can affect your environment. You'll learn how to... All Applications White Papers | Webcasts