Microsoft and ERP: Plans and Acquisitions

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Microsoft and ERPPlans and Acquisitions

• Jason Gandy
• Jeremy Turner
• Justin Isasi
• November 20, 2008

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Microsoft Acquisitions

• (and their strengths)

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Microsoft's acquisitions Introduction

• Microsoft has aquired an average of six companies
  per year since its first acquisition in 1987.
• Microsoft purchased 18 companies in 2006 alone.
• Visio, Navision, aQuantive, and Fast Search
  Transfer Corporation.

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Microsoft and Visio

• Microsoft completed the acquisition Visio Corp.
  on January 7, 2000 for 1.5 billion in stock.
• Jeremy Jaech, president and CEO of Visio Corp.,
  stated We look forward to being a part of
  Microsoft and to many opportunities and
  challenges as we focus on increasing and
  expanding the value that diagramming software can
  add to knowledge workers around the world."
• Visio Corp. was a leading supplier of technical
  drawing and diagramming software before the
  acquisition.
• Visio 2000
• Visio 2007 features Data Link and Data Graphics
  functionality, a PivotDiagram template, Value
  Stream Map template, ITIL template, Network
  diagram templates, Web development templates,
  Software development templates, architectural
  plans, engineering schematics, facilities
  management, and database modeling.
• Future ribbon user interface

5
Microsoft and Navision

• Micosoft Corp. completed the acquisition of
  e-business developer Navision in July 2007 buy
  purchasing about 1.4 billion of Navision's
  shares.
• Microsoft Business Solutions
• Competing with SAP AG an Oracle Corp.
• Expanding market share in Europe.
• Navision has gone through several name changes
• -Navision Financials, Navision Attain, Microsoft
  Business Solutions Navision Edition, and the
  current version of the software Microsoft
  Dynamics NAV

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Microsoft and aQuantive

• In May 2007, Microsoft announced that it would
  purchase aQuantive for 6 billion
• aQuantive is the parent company of digital
  marketing service and technology companies,
  including Atlas, DRIVEpm, and Avenue A/Razorfish.
  
• Brian McAndrews, CEO of aQuantive, stated
  aQuantives mission has been to leverage the
  power of digital marketing services and
  technologies to drive measurable results for our
  clients. We look forward to combining forces with
  Microsoft and bringing the value of our combined
  assets to bear for the benefit of advertisers, ad
  agencies and publishers.
• Steve Ballmer, CEO of Microsoft, stated that The
  advertising industry is evolving and growing at
  an incredible pace, moving increasingly toward
  online and IP-served platforms, which
  dramatically increases the importance of software
  for this industry.
• With aQuantive, Microsoft is able to have better
  relationships with advertisers, agencies and
  publishers enhancing their current advertising
  platforms and services.

7
Microsoft and Fast Search Transfer

• On January 8, 2008, Microsoft announced it will
  offer to purchase Fast Search Transfer for 1.2
  billion.
• Fast Search Transfer - leading provider of
  enterprise search solutions. Enterprise search
  helps businesses find, use and share information
  quickly.
• Enhancing enterprise searching.
• Jeff Raikes, president of the Microsoft Business
  Division, stated The combination of Microsoft
  and FAST gives customers a new choice a single
  vendor with solutions that span the full range of
  customer needs.
• The acquisition of FAST by Microsoft gives them a
  more broad and enhanced way to get there search
  technologies to more businesses globally.

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Microsoft Future Acquisitions

• Microsoft will continue to expand
• Possible future Microsoft acquisitions
• Microsoft has recent expressed interest in
  purchasing Yahoo Corp.

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Microsoft and Yahoo

• Microsoft has been recently expressing interest
  in purchasing Yahoo, the well known Internet
  company.
• Microsoft bid 33 per share for the purchase of
  Yahoo, but withdrew the offer after Yahoo CEO
  demanded 37.
• Steve Ballmer of Microsoft said that he simply
  moved on after Yahoo rejected his bid.
• Balmer stated I'm sure there are still some
  opportunities for some kind of partnership around
  search, but I think an acquisition is a thing of
  the past.
• Yahoo would have provided strength to Microsoft's
  Internet advertising market. Yahoo is second only
  to Google in the search engine market.

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Microsofts Entrance into ERP

• Microsoft began by acquiring companies that
  showed success in their respective areas of the
  ERP market
• Project Green
• Began in 2003 and attempted to take their 4 newly
  acquired companies (Great Plains, Navision,
  Axapta, and Solomon)and integrate them into a
  single code base.

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Problems with Project Green

• Extremely large undertaking, not only
  financially, but technically also.
• By 2004, the amount of developers was cut from
  200 to 70.
• In 2005, Microsoft considered selling off its ERP
  products due to lack of progress and an inability
  to meet deadlines and requirements

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SAP Acquisitionfact or fiction?

• Talks between Microsoft and SAP denied by some
  sources.
• Extreme amount of money involved in such a deal.
• Complications in the integration of the two
  companies also prove to be a major road block for
  the dealif it exists.

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Solutions to Microsofts ERP Problems

• Microsoft decided to break up their integration
  of all of their ERP products.
• Integration and development is set to occur in
  scheduled waves.

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Waves - Defined

• 1st Wave(began late 2005 to late 2007)
• This included incorporating its ERP products with
  common Microsoft technologies and programs.
• These technologies included SQL server Business
  Intelligence capabilities and Sharepoint.

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Wave Defined (contd)

• Wave 2 and 3 are still yet to come.
• Wave 2 will focus on allowing the ERP products to
  take advantage of features within Longhorn
• Wave 3 will deal with integrating all of the
  products into a single code basewhich was the
  original focus of Project Green.

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Microsoft Dynamics

• Dynamics is a line of integrated, adaptable
  business management solutions that are mostly
  based off of the products acquired by Microsoft
  when they began their ERP run.

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Dynamics Available Products

• Dynamics AX
• Dynamics CRM
• Dynamics GP
• Dynamics NAV

• Dynamics Point of Sale
• Dynamics RMS
• Dynamics SL
• Dynamics Snap

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Comparisons with SAP

• Depending on the source, Microsoft scores higher
  than SAP in many areas of concern for customers.
• A cost comparison would be impossible for the
  most part due to the fact that cost would be
  based on the wants and requirements of the
  purchasing company.
• Microsoft claims to have to most cost effective
  solution when it comes to ownership, but SAP
  makes a similar claim.

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Who uses MS Dynamics?
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Entertainment

• Suns Legacy Partners
• Phoenix Suns
• Phoenix Mercury(W.N.B.A)
• Phoenix Roadrunners(E.C.H.L.)
• Phoenix Rattlers(A.F.L.)
• Integration between franchises.

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Electronics Sales

• Nikon
• An industry leader in camera sales
• Integrates Dynamics with SAPs R/3
• Functionality of SAP
• Attractive GUI of Dynamics

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Microsoft

• Replaced Seibel system with in-house Dynamics
• Roll-out completed in July 2008
• Utilizing SQL Server 2008

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Benefits of Dynamics

• We were able to eliminate 40 hours a week out of
  our billing scenario and capture an additional 1
  percent of our implementation revenue
  eliminating a significant amount of back-end time
  trying to decipher the invoices against their
  contract.
• -Anonymous Member of Case Study

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Return on Investment

• 21 Month Time-Table
• 87 Already Realized Positive ROI

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Productivity and Budgeting

• 87 of Companies increased in productivity
• 73 of Projects Completed at or Under Original
  Budget
• Increased project accountability for Customer
  Service

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IT Reduction

• Combination of Disparate Systems
• 53 IT Savings
• IT service ratings also increased by around 50

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Cost of 3 Yr. Implementation

• Licensing 200,000
• Hardware 41,000
• FTE (7.5 Months) 250,000
• Add maintenance and training
• Total Cost Est. 1.3 Million