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:
- Dynamics current architecture is not cloud-ready.
- Dynamics is actually four different products, each with different data models and application logic.
- Microsoft risks alienating its partner channel, who make a lot of money off Dynamics.
- 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.