Editor’s note – July 11, 2012 – The transcript below was updated to identify Ferranti as the global ISV company noted for its delivery of solutions for billing in the energy sector.
ANNOUNCER: Ladies and gentlemen, please welcome President, Microsoft Business Solutions Division, Kirill Tatarinov. (Applause.)
KIRILL TATARINOV: Well, good morning, everybody. It is my great honor and privilege to be here with you today. What an amazing time to be a Microsoft partner. And today, this morning, my job is to really get you excited about Microsoft Business Solutions.
Microsoft Business Solutions is the youngest part of our enterprise portfolio. It really serves as the logical extension of all this massive investment that we've been making in the course of the last 20 years in the enterprise. And this is also the place where we get a chance to take all of the massive innovation that you get a chance to see and hear about yesterday and this morning and bring it to very specific context that business people get to use every day.
This is really the place where we deliver consistent and compelling business applications, consistently, across the devices, connected and leveraging the full power of the cloud. Today, we'll have an opportunity to see how it works in action and we'll have a chance to show you what it really means.
While Business Solutions is the youngest part of our portfolio, this business is growing and moving forward incredibly well for us. And I want to start off by saying a huge thank you to all of the Dynamics partners here in the room, about 3,000 of them are here; great job, guys, amazing year. (Applause.)
This business is rapidly getting at scale, with well over a billion dollars in revenue run rate and solid double-digit growth, we're taking share from incumbents and we're rapidly gaining traction in delivering business solutions in the enterprise.
Last year, here at WPC, for the first time, we unveiled Dynamics AX 2012. And together with our partners, this product is becoming a true game-changer in the ERP industry.
Gartner published their magic quadrant where Dynamics AX became one of the two only leaders in their rankings. And in that same magic quadrant, they called out Microsoft Dynamics partner channel as one of the core success ingredients. Not only that, they also said that Microsoft Dynamics AX creates enormous opportunities for broader partner ecosystem to work and deliver with Microsoft. We see explosive growth with Dynamics AX, which represents huge opportunity for all of us to work and deliver together to the needs of growing, large enterprises.
Dynamics CRM and Dynamics CRM Online. You heard Steve talk about yesterday about the very important strategic need of providing consistent experience across public and private cloud. And with Dynamics CRM, we're delivering this consistent experience. Inside Office Outlook and in the browser, in public cloud, in private cloud, with high degree of consistency and symmetry. Today, we have almost 3 million people running Dynamics CRM every day to manage all things considered with their customers, with their sales opportunities, with their needs of marketing. Great growing partner ecosystem around Dynamics CRM.
Last year, we had amazing, amazing roster of customers, large customers like Cornell University and many others who were signing up to run Dynamics CRM in the cloud for thousands of users in their organization.
Now, with Dynamics, with Microsoft Dynamics and Microsoft Business Solutions, we take deliberate dependence on our partner channel in both value-added resellers delivering our solutions, but most importantly also in delivering this final mile of innovation, delivering the vertical expertise on top of Microsoft Dynamics platform.
Today, we're very excited to see additions to our ISV community with several well-established global ISVs delivering innovation on Microsoft platform, companies like Cincom, Technosoft, PROS, Cenium, Campus Management -- today they're announcing that they joined the global ISV community.
Yesterday, here at WPC, I had a chance to sit down with another global ISV company called Ferranti, and they've done an amazing job in the last year since they joined the global ISV community by delivering solutions for billing in the energy sector, taking market share away from Oracle and SAP and being considered a leader in that particular segment. What an amazing job. (Applause.)
Now, just like Microsoft, transitioning from platform, expanding from platform and productivity tools into the world of business solutions, we see many of our partners do just the same. And one amazing example that I want to share with you is the organization partner called Slalom Consulting. They've been in the Microsoft partner ecosystem for over ten years since they established the technology practice, and they've done some amazing job. Of course slalom -- slalom is a favorite sport of mine, I have to mention that, and this is also the sport where the precision, skill, experience, and strength come together. And these are certainly characteristics of Slalom Consulting.
We have a great opportunity to have Tom Chew who is the general manager of Slalom Consulting, runs their technology practice join me here on stage to tell you about Slalom Consulting's success. Tom? (Applause.)
TOM CHEW: Hey, Kirill, good to see you.
KIRILL TATARINOV: Welcome.
TOM CHEW: Thank you.
KIRILL TATARINOV: So you run technology for Slalom.
TOM CHEW: That's right.
KIRILL TATARINOV: And expanding from Office and SharePoint and adding Dynamics to your roster of skills was your decision.
TOM CHEW: Yes.
KIRILL TATARINOV: About two years ago, you entered the business solution landscape.
TOM CHEW: Yes.
KIRILL TATARINOV: What happened?
TOM CHEW: Well, adding Dynamics CRM to our suite of integrated offerings was a huge competitive advantage for us. It really helped us achieve our strategic objective. We were able to reach more customers and drive profits. I think, specifically, the integration of Dynamics CRM Online and Office 365 from a solution perspective has propelled quite a bit of growth for us, and we see that as a big play going forward.
KIRILL TATARINOV: So what advice can you give to the partners here? Many of the folks here in the room have great experience working with our platforms, with virtual machines, with the server and SQL and broad range of technologies, what would you tell them in terms of Dynamics and how specifically Dynamics can help them win?
TOM CHEW: So, for those partners that are looking to expand their business and looking to drive more connection to the business decision-makers, I think adding Dynamics CRM to their suite of offerings and extending the Dynamics CRM platform will give them a great competitive advantage and, I believe, help them drive profits.
KIRILL TATARINOV: Well, that's terrific. Any parting words?
TOM CHEW: It's great to be here, and I certainly appreciate the opportunity.
KIRILL TATARINOV: All right, thank you so much.
TOM CHEW: Thanks, Kirill, appreciate it.
KIRILL TATARINOV: Congratulations on your award. (Applause.) Slalom Consulting has been consistently receiving awards for their great performance in our channel. Thank you, Tom, and thank you, Slalom Consulting.
Our vision for business solutions is dynamic business, and we're really focused on making every business a dynamic business. Business that does not stand still. Business that looks forward to embracing new opportunities. Business that truly makes their people more productive and empowers them to do great things. And that people-centric approach is really what differentiates Microsoft Business Solutions, Microsoft Dynamics from the rest of the competition.
This is a deliberate path that we're taking to empower and to make every person in business better at what they do. Whether they work with analytics, whether they work with data, whether they're in sales or back office, we give them something that would make them more productive.
As we do that, we're truly changing the game in business applications by helping our customers move away from the legacy system of record where they just collect the data, and this data is trapped in the old system. Help them move to the forward-looking, proactive world of business applications that people truly love, that people want to use, that people get better from by using it. Providing them tools and technologies that truly make their organization, their enterprise connected, where people get the right data at the right time and can share this data seamlessly.
We're really focused on delivering the solutions, and as we bring them to market, to ensure that we provide the unparalleled level of simplicity and agility, simple to deploy, simple to use, simple to customize, simple to configure, and really fast to deploy and get to run. So, the return on investment is unrivaled in the industry, and that is the true differentiator of Microsoft Dynamics as we get to hear from many of you here who work with our solutions and many of our customers who've been hugely successful in embracing the solution and getting it to run.
I mentioned the symmetry between private and public cloud as one of the most important strategic tenets as we move forward into the future. This is really a place where we heard time and time again from our customers that while some business workloads they're very comfortable putting in the cloud, and Dynamics CRM is one of them, and in Dynamics CRM Online we're seeing over 60 percent of our customers today choosing the cloud deployment model, public cloud deployment model.
But some of those workloads they truly want to guard and they truly want to keep on-premises. And we uniquely give our customers the ability to do just that and provide very consistent experience and provide full connectivity, linking the cloud to on-premises deployments.
And with Microsoft Business Solutions, it is business solutions from Microsoft and truly we take all of the innovation that comes from Microsoft and put it in front of business people. So, whether it's the world of big data and incredible analytics coming from SQL Server or technologies that you just saw from Satya's presentation with virtual technologies and Azure and Windows Server, or Bing and this massive scalability that we get from the cloud, SharePoint, Office, and Yammer and social technologies enabling the world of true communication and collaboration for the enterprise. Our job in Microsoft Business Solutions is to bring it all together and uniquely deliver it to our business customers.
No other company on the planet can do that. No other company on the planet has access to this massive innovation designed for consumers or business people and bring it together and deliver it in one consistent experience across the devices, connected into the cloud.
Now, of course, a demo is worth a million words. With that, I would like to invite Errol Schoenfish to join me here and to help me show you what business solutions from Microsoft can really do for our business customers. Errol, welcome. (Applause.)
ERROL SCHOENFISH: Thanks, Kirill. It's great to be here in Toronto. As you mentioned, it's all about the people. We're going to get right to the demo.
What I'm going to do today is I'm going to play three roles during this demo. The first role I'm going to play is a business analyst. And what better place to start than inside of Microsoft Dynamics application to show all the great information that I have quick access to right here in my Role Center that's specific to my needs.
KIRILL TATARINOV: Well, that's great. So, this is the Role Center that is specifically built and designed and customized by Errol himself to serve his needs. And as you can see here, as a business analyst, Errol gets access to vast amounts of data right inside his Dynamics business application, Dynamics ERP in this particular case. And not only can Errol access data from within his company, that the company collects and stores, but he also has access to vast amounts of data over the Internet that comes to him through Windows Azure Data Mart and comes in a very connective experience. And then can be integrated and viewed together with the data that he's stored and the data his company collected internally. So, he has access to everything that he needs to be successful in his role of business analyst.
Not only that, as the sort of worker making sure that the data is there and ready for the company to make the decision, Errol can share this information with other people inside his organization, making sure that they have access to the right data at the right time using the right tools.
Now, to do that, Errol is using Office 365. And here you can see Office 365 running in the cloud, in the public cloud, and there is a report that Errol's going to share with his sales executive. He can do it by viewing this report on the Excel right on his machine, so basically true seamless connection between business applications and familiar productivity tools, and can also view it in the browser like he's doing it right now. And that report is automatically shared through Office 365 with other people in his organization.
ERROL SCHOENFISH: And as a business analyst, you know, I love working with big data, so I'm really looking forward to that Perceptive Pixel device that's coming, so I can work with the information on something like that.
KIRILL TATARINOV: Big data and that big display, those are certainly going to go very well together.
ERROL SCHOENFISH: Exactly. So, now we're going to something a little bit smaller, but I'm going to change roles now and I'll be an account executive in the field. And as a result of that, I spend a lot of time on the phone.
KIRILL TATARINOV: So, of course, people who travel, people who get to call on customers day in and day out, in many cases, this is the only device that they have access to. And here, Errol gets access to Office 365, same familiar interface, same familiar experience. He can get to Office 365, get the same report, same report as Errol the analyst got a chance to share with Errol the sales person.
Now, looking at this report, Errol can see that one of his customers, Contoso in this case, didn't buy sufficient amount of parts this month. Historically, they've been consistent in their buying purchases, and this month they're sort of short. So, Errol gets all the data he needs to conduct a productive sales meeting and drive more opportunity in his discussions with Contoso.
ERROL SCHOENFISH: Exactly. And so as a result of that, I can have a meaningful conversation with them with the information that's provided for me.
KIRILL TATARINOV: Well, that's terrific. Now, as Errol completes his discussion and finishes his business trip, another thing that he needs to do is to log his expenses. And you saw one example of expense management earlier this morning and here is an expense management application running in Microsoft Dynamics AX expense management tool.
And here, Errol very quickly enters his expense report. Not only that, he can take a picture of the receipt, he doesn't have to scan it and manually put it in the system. Now it is fully attached to his expense report. Now, really the magic happens. Errol, with one click of a button, through the Azure service bus, can take this expense report with the snapshot of his receipt and push it through Azure into Microsoft Dynamics AX expense management application where the workflow for approval is going to kick in. Errol doesn't have to do anything else, his expense is absolutely logged and tracked and going through approval. He doesn't need to spend his time logging his expenses, he can spend his time selling.
ERROL SCHOENFISH: Exactly. That's where I need to be. So, the third role that we're going to do is the role of project manager. I definitely love my phone as an account executive, but I really love my tablet as a project manager. It really presents information to me in a very holistic view, and I have quick access to all that information using the live tiles.
KIRILL TATARINOV: So this is a Dynamics application running on Windows 8, something that is going to be available in the next 12 months, and this is a project management tool. A tool that many of the folks here in the room would love using. It provides the ability to track projects, it provides social interaction ability so you can see all of the people who work with you on particular projects that you manage. It gives you the ability to see all the data, but not only that, it gives you the ability to act.
So, in this particular case, Errol has a chance to approve an activity that, yet again, is automatically going to generate workflow and the process will continue.
ERROL SCHOENFISH: So you've seen the power of Microsoft Dynamics across three devices, and I hope everybody here is as excited as we are to deliver this solution with huge opportunity for partners to come along for the ride.
KIRILL TATARINOV: All right, terrific. Thank you, Errol.
ERROL SCHOENFISH: Thanks, Kirill. (Applause.)
KIRILL TATARINOV: And so we know many of you here are business customers themselves. And I hope this demo demonstrates not only the power of Microsoft Dynamics as the tool and as the technology that can help you deliver more value to your customers, but also too a technology that you can use yourself, just like Microsoft is running Dynamics CRM and Dynamics ERP every day to help us run our business.
We entered the world of business application approximately 12 years ago, and that has been an incredible journey for us. We entered this market being the market provider, and this is where we established our foothold. In the last three years, we've made this incredible transition from being midmarket provider to being an enterprise provider. As we went on this journey, we took all of the competencies and all of the strengths that made us successful in midmarket, most importantly simplicity, agility, and incredible, unrivaled value, and we took it up into the enterprise. And we added breadth of functionality and scalability. And so now we have the solution that is ready to the entire world, no matter the size of the organization.
And today, at this partner conference 2012, we're really standing at a turning point for Microsoft Dynamics business, where we're absolutely ready to address the needs of enterprises of any size. And here we have some phenomenal examples of great companies that sign up to run Microsoft Dynamics for the needs of those large, incredible enterprises. And some amazing partners work with us to serve the needs of those enterprises. And there is more and more opportunity that exists there for many of you.
Partners like Traviata. Traviata is the award-winner in the CRM for financial sector industry. They delivered amazing solution, amazing set of scenarios. Thank you, Traviata. (Applause.)
For large organizations like Axxa, organizations like ING, BNP Paribas, and many more to come, they're based in Belgium, I had a great time having lunch with their CEO yesterday.
We have a great relationship with Nissan. We announced a partnership with them earlier this year, and this is the case where one of our new global ISVs, Technosoft, and Accenture/Avanade working together to deliver the enterprise solutions to help Nissan revolutionize dealer management of their dealers in Japan and later all over the world.
So, amazing opportunity for us to work together in the enterprise and deliver, cater to the needs of those complex deployments and really, really help those customers break the mold of the legacy system of record, take out the incumbents, and help those companies move into the future and help them become dynamic businesses.
We're really excited. We're really excited. Make no mistake about where we are with Microsoft Business Solutions with Microsoft Dynamics and we look at the year ahead with huge amount of excitement and confidence.
We have an incredible product roadmap ahead of us. Every single product in the Microsoft Dynamics portfolio will be refreshed, and more innovation is coming. More innovation in specific business scenarios and business applications, and of course uptaking everything that Microsoft is delivering in Windows 8, in Windows Phone, in Windows Azure, in Windows Server and SQL Server and giving it to our mutual customer in a complete set of business scenarios, business applications consistent across the devices in the cloud.
Many of you told us that we continue to hear from customers and from the boards who are making purchasing decisions that people really don't quite know yet, not many people know yet that Microsoft is in the business of delivering business solutions. So, going into this year, going into FY13, we're going to dramatically increase our investment in awareness.
A couple of months from now, you will see Dynamics everywhere. You will see Dynamics, you will see Microsoft Business Solutions, you'll see success stories, you'll see wins, you'll see our partners joining with us, demonstrating how successful we've been and how successful we can be in delivering business solutions for our customers.
We deliberately depend on our channel. We deliberately depend on our partners, ISVs, value-added resellers, consultants at large scale. And this depends and this strategy remains invariant. Going into next year, we're dramatically increasing investment in partner readiness, in training materials, and specially designed training programs that help a broad range of partners to gain Dynamics competency and add it to the existing arsenal of tools that you have at your disposal.
We're also making it easier for customers to acquire our solutions. In September, Microsoft Dynamics AX 2012, the game-changing ERP solution, will go on enterprise agreements through volume licensing. So, many of the customers we already serve will have a much easier way to add Dynamics AX to already-existing set of solutions that they gain from Microsoft. So, incredible year ahead, we're truly excited about the opportunity that is in front of us.
I want to really thank you. I really want to thank you for working with us. I want to thank you for being Microsoft partners, and most importantly I want to yet again highlight the opportunity of Microsoft Dynamics and Microsoft Business Solutions.
We're in this business to win. This is a big bet for Microsoft. This is truly the logical continuation of our journey of being the winner in the enterprise. And together we know we can win. Thank you all very much, please enjoy WPC. (Applause.)