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NELSON: DYNAMICS GP DISAPPEARING

Zach NelsonBefore the Dynamics fans rise in a roar, what NetSuite CEO Zach Nelson said during yesterday’s earnings webcast was that Dynamics GP is disappearing as a competitor.  He’d discussed that alleged trend before, but this time he put it in context. The words themselves are worth the jarring impact “The one prediction I will repeat is the continuing demise of Microsoft Dynamics Great Plains.” The elaboration came in answering an analyst question about which products NetSuite runs into.
Nelson said that in the first half of 2010, GP was an important competitor, but that the product disappeared as a challenger for new business and has become a replacement target. The fact that Nelson spent more time trash-talking GP than SAP suggests he and his company smell blood. And I’ll simply repeat his description of the GP channel. “Their partners are leaving the sinking ship.” Hey, I’m just the messenger. I will note that I have publicly said over the last three years that GP was the most vulnerable of the Dynamics products because its more generic than Dynamics, less international than Dynamics NAV and AX and less sophisticated than AX and it’s more subject to pressure from QuickBooks Enterprise Solutions. While I would not say there’s no future for Dynamics GP, I’d say there’s little future for anyone who wants to be a new GP reseller. However, Nelson generously shared his barbs. He said the company plans on focusing on government services where “Deltek is struggling” and in quoting SAP as saying that Business By Design is a category killer he continued that “The category they are killing is SAPs core business.”
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