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Article

Title: 'It's all about the platform' as two Microsoft units merge

Author: Staff Article Type: Product Analysis
Source: Manufacturing Business Technology, v23 n12 p27(2) Publication Date: Dec 2005
  ISSN: 1533-7758
URL of Publication: http://www.mbtmag.com

Microsoft will combine seven of its business units into three in a major corporate reorganization. Microsoft Business Solutions will now be known as Microsoft Business Dynamics. This represents an integration of Business Solutions with the Office group. Microsoft believes that the new division provides the chance to move Office to a new level and to give it more of the capabilities required to handle core business processes. It will also make it easier for Microsoft Dynamics to automate business processes with familiar applications. The merger of Business Solutions with Office represents the peak of Microsoft's cross-integration strategy. The new division targeting enterprise and Office customers will allow for tighter integration for all Microsoft products and services. Industry observers say that the applications may provide lower integration expenses in the long term, but in order to obtain optimal performance, companies might need to buy many client-access licenses and additional servers. This would add to initial implementation costs. Some analysts see Microsoft's move as another action in the ongoing platform war that involves other major vendors like Oracle and SAP, while others suggest that Microsoft is attempting to cover losses experienced by Business Solutions by merging it with the Office group.

Companies:
Microsoft Corp

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