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DYNAMICS 365 HURTING SALES? Featured

Shirley Singleton, Edgewater 33Two Dynamics resellers that report publicly are saying that the move to the cloud with Dynamics 365 is causing sales issues. Denmark-based Columbus and Edgewater Technology both pointed to Microsoft's move to push to the cloud with 365, an online version of Dynamics AX. Edgewater CEO Shirley Singleton said in her company's earnings webcast that the lack of a migration path for the desktop AX users is causing businesses to reconsider buying decisions.

"Our customers are pausing to evaluate their cloud adoption strategy," she said, making that once describing the situation as turmoil in the channel. The company is also feeling the push from Oracle, whose products are sold through Edgewater Ranzel. "It is a full out race to the cloud" she said. Columbus CFO Hans Henrik Thrane did not use language that strong but referred to the impact of a faster migration to the cloud as cutting into licenses sales. The expectation is Columbus will sell less of its own brand of software and of what it calls "external" software, primarily Dynamics. However, his analysis is that the move to the cloud hurts earnings more than revenue. Another reseller, Bryan Wilton of Interdyn BMI—which is owned by Columbus—responded, "for the most part, we are in the same boat." Singleton says Microsoft is providing new functionality on 365 but has given no indication  when new enhancements will be available for AX, while at the same time, the cloud product lacks many features of the desktop version.

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