Microsoft is “All In” for the Cloud, but What About Dynamics?

Microsoft’s Steve Ballmer says the company is “all in” for the cloud, but moving its Dynamics ERP solution to the cloud could prove challenging for several reasons:

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  1. Dynamics current architecture is not cloud-ready.
  2. Dynamics is actually four different products, each with different data models and application logic.
  3. Microsoft risks alienating its partner channel, who make a lot of money off Dynamics.
  4. Microsoft’s customers might not be ready for a cloud-based product.

To overcome these challenges, Microsoft has several options. It could build a new solution, acquire a competitor or transition all four Dynamics options to the cloud. Of course, it could also just avoid transitioning Dynamics to the cloud altogether, which offers problems of its own.

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