In a lot of cases where SAP ERP is used at a company's corporate headquarters, we must demonstrate that it is often more cost effective to deploy Microsoft Dynamics AX than SAP All-in-One in the company's subsidiaries and regional offices.

Microsoft has recently made this business case more compelling with a new Microsoft Dynamics two-tier connector for SAP business scenarios. This connector accelerates two-tier enterprise resource planning (ERP) deployments between Microsoft Dynamics AX and SAP Business Suite. The connector enables IT organizations to use Microsoft Dynamics AX across subsidiaries, divisions or branch entities to facilitate cost-effective business process integration and easily connect with SAP installations at the corporate headquarters.

Specifically, the Microsoft Dynamics AX two-tier connector will enable common business process integration scenarios for headquarters and subsidiary locations, including the following:

  • Financial consolidation. The sharing and consolidation of detailed financial information from subsidiaries using Microsoft Dynamics AX can be automated and exposed through a central SAP installation, increasing visibility of financial performance across the organization. 
  • Intercompany supply-chain integration. The integration of intercompany procurement and supply-chain processes between local and regional distribution with centralized fulfillment organizations helps facilitate automated order processing. 
  • Plant automation. Integration of decentralized manufacturing operation processes into centrally orchestrated planning processes enables more accurate and responsive manufacturing planning across the organization.

According to a recent Software Insider’s Point of View survey of next-generation IT leaders, conducted by Altimeter Group analyst Ray Wang, 32 percent of survey respondents are now considering a two-tier ERP applications strategy over a single application deployment in their organizations. The survey results highlight the key drivers behind moving to a two-tier ERP approach, including the need for purpose-built or industry-focused solutions coupled with the fact that existing systems are too expensive to implement and upgrade at the subsidiary level. Subsequently, companies are deploying Microsoft Dynamics AX for its flexibility in global and vertical customizations and low total cost of ownership through integration with other Microsoft products.

For more information on the two-tier connector, view the press release:
Microsoft Introduces Microsoft Dynamics ERP Two-Tier Connector for SAP Business Scenarios