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DYNAMICS REVENUE UP 13 PERCENT IN Q3
Microsoft has reported that Dynamics revenue for the third quarter ended March 31 was up 13 percent over the prior year. On that note, we have almost exhausted the information the company provided in its 10-Q and none of the discussion in this week's webcast touched upon that business. Dynamics is part of the Microsoft Business Division, which exists only for reporting purposes. That fictional unit had a revenue increase of 8 percent for the period just ended.
Since there was an 11-percent increase in Dynamics revenue for the nine months, we can conclude business improved in the last three months. But that leaves us to speculate about just how good the business is. From one doubter came the following: "They did have a good Q3 but they are still way behind the year-to-date through three quarters." While this person said year-end goals will be hard to hit, "they do have some very large AX deals in the works that could help." We can assume that even with revenue up, we are talking about having trouble reaching aggressive revenue goals. The 13-percent increase is consistent with what VARs were saying when interviewed for the Top 100 VAR special report coming this month. And that is that business had picked up, especially with the new year. With all the specials Microsoft keeps running, the question remains about just how profitable is this growth for the company's channel?
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