I just read Joshua Greenbaum’s article (Microsoft Dynamics Goes for the Mid-market again). It’s exciting that the industry is starting to recognise Microsoft’s successes in the mid-market, winning deals over SAP, Salesforce.com and Oracle based on the Microsoft CRM platform, high R&D investment, and roadmap for the product over the next few years.

Joshua raises some interesting points: does Microsoft’s indirect channel sales model actually support enterprise and upper mid-market deals? Should Microsoft engage or lead enterprise sales directly like Oracle and SAP?

You’d be forgiven for not completely understanding the indirect channel model Microsoft has established. It’s a little different from the USA in the UK too, and I guess it’s becoming somewhat blurred in the small/bottom end of the mid-market, with Microsoft offering CRM Online and plans for GP Online, NAV Online directly.

That said, I feel Microsoft’s commitment and foresight in establishing this model opens more doors than it closes. While Microsoft’s current model is ‘channel based’ I don’t think this precludes Microsoft’s involvement in deals directly at all. We regularly work with Microsoft directly to jointly pitch Microsoft CRM and our implementation approach to potential enterprise customers.

Our Microsoft team has a clear visibility of our sales pipeline and regular opportunity reports and updates from our own CRM system too.

I think a partner-led (or partner+vendor) approach is much more credible than a vendor-led sale. A partner can talk about cross-platform integration, compatibility and value added services like support and training. Sometimes a vendor could be prejudiced towards a ‘stack’ or product range, and up-sell/cross-sell opportunities.

Without doubt, the Microsoft partner ‘ecosystem’ (to coin a Microsoft term) offers a fantastic assurance for CRM buyers evaluating Microsoft CRM. Microsoft has thousands of ISV, reseller, implementation, support and system integrator partners around the world.

The Microsoft partner ecosystem also helps to maintain the consultancy resources, skills, best-practice and add-ons and it keeps the market fresh and competitive.

My only criticisms of the current ‘ecosystem’ are based around the partner directory tools currently available. This huge global network of Microsoft partners don’t talk enough – there are so many great ISVs out in the cloud spending valuable R&D budgets on marketing to other Microsoft partners or resellers. It’s ludicrous! Microsoft should be facilitating this cross pollination and ‘match making’ service.

Ultimately, selling indirectly is initially a risky and potentially expensive strategy, and it undoubtedly takes balls. Ask anyone that’s ever tried launching an ISV or SaaS service through the channel.

The fact Microsoft are making it work profitably speaks volumes and I think it offers CRM buyers and evaluators with great assurance and confidence in the whole Dynamics range.