Why Madeira will be a better ERP solution for Microsoft than AX, NAV, GP et al.

For a quick primer on project Madeira check out eWeek:

Microsoft’s Outlook-centric, software-as-a-service business management offering for SMBs goes live in the United States.

Question: If you were Microsoft, would you rather sell a single, one-thousand user AX deal or one thousand, one user Madeira deals?

My answer later.

Microsoft has spent a fortune building out its Azure infrastructure and now the race is on to sell space in all those data centers. An application like Madeira fits perfectly into the Azure strategy while ERP applications like AX, NAV and GP do not.

Publically, Microsoft will tout how well its Dynamics ERP packages run on Azure but behind the scenes it is a nightmare. If you don’t have access to insiders just look at the release strategy for the latest version of AX and draw your own conclusions.

So let’s break this down in non-technical terms.

Azure is the bits and bytes equivalent of renting out self-storage units. Units come in multiple sizes and work best when “stuff” fits nicely into pre-defined units. That is the equivalent of Office 365 or Dynamics CRM on Azure. Everything fits nicely and everyone is happy.

Now let’s say that someone comes to store an elephant.

elephant-in-room-logo

The biggest unit barely fits him and you have to cut holes in the front and the back for the trunk and tail to stick out. Oh yeah, and you have to deal with a bunch of other crap like, food, water, daily exercise and…actual crap! That is a big ERP implementation with its associated overhead.

Never mind the fact that companies deploying one-user accounting systems have never had million dollar ERP failures and as a result, sued everyone involved into the stone ages.

As my very smart friend about all things cloud Sudesh Girdhari likes to tell me, it’s a race to the bottom in the cloud world.

Everyone wants to cut costs and fill their data centers with recurring revenue. In that business model Madeira fits perfectly. AX, NAV and GP are an elephants standing around in ill-fitting stalls knee deep in elephant stinky.

Makes you wonder if there is even a long term Azure strategy for products better suited for highly “customized” clouds with a wide range of services.

If you are in the process of selecting a new ERP solution or in the midst of a challenged or failing ERP implementation give us a call.

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