Normally, if you heard that a business software company wasn’t using its own business software as part of its business strategy, that would be a strong vote for the competition. But in the case of Microsoft, it’s actually a precautionary tale to avoid SAP like the plague. Here’s why.

The Microsoft team in charge of Dynamics does “eat its own dog food,” and runs Microsoft Dynamics ERP. But further up the chain, atMicrosoft HQ, the software giant is still using SAP.

But they aren’t happy about it.

The question came up during a Microsoft Q&A session at the Seattle AXUG conference. Why would Microsoft headquarters be using SAP rather than its own Dynamics offering? The answer is that Microsoft would have to undergo a major overhaul, too expensive and impractical to implement at this point in time.

While SAP can be very powerful at the enterprise level, it is also clunky, and isn’t all things to all people. Its out-of-box ability to be customized is limited, and Microsoft has only been able to make it work for them by introducing dozens, possibly hundreds, of customized applications.

The internally produced applications were a necessity, because SAP is too rigid to be customized without hard-coded solutions. Replacing SAP would require replacing dozens and dozens of applications, recreating them from scratch. It wouldn’t just be costly, it would likely disrupt the flow of business and result in harmful downtime.

Microsoft is the perfect example of a business that doesn’t stay with SAP because they like it, but because they don’t have any other options. Clearly the software giant could improve its image if it were to use its own CRM software, so staying with SAP is clear proof that it really is their only choice.

Whenever Microsoft creates a new unit, they use Microsoft Dynamics, but it looks like HQ is stuck with SAP for the foreseeable future.

Orginal Source: Jason Carter of -  Why Microsoft Will Not Replace Its Internal SAP Implementation With Dynamics

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