Microsoft Introduces Microsoft Dynamics ERP Two-Tier Connector for SAP Business Scenarios

REDMOND, Wash., May 17, 2010 — Microsoft Corp. today announced a new connector that accelerates two-tier enterprise resource planning (ERP) deployments between Microsoft Dynamics AX and SAP Business Suite. This new 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 location.

The Microsoft Dynamics ERP 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.

Integration can easily be customized by using Microsoft BizTalk Server to provide sample mappings for electronic data interchange and detailed technical documentation.

“Organizations seeking to streamline their processes and technology should consider a two-tier ERP strategy,” said Crispin Read, general manager of Microsoft Dynamics ERP at Microsoft. “With the shifting market landscape, Microsoft is providing a simple and innovative approach to customers by providing them with a cost-effective alternative to the limitations associated with forcing a single enterprise solution across their entire business.”

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.1 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 ERP for its flexibility in global and vertical customizations and low total cost of ownership through integration with other Microsoft products.

“Many Microsoft customers are seeing increased measurable success by implementing a two-tier strategy using Microsoft Dynamics ERP as an alternative to a traditional monolithic deployment across their divisions or subsidiaries,” said John Scandar, senior vice president at FullScope Inc., a Microsoft Gold Certified Partner.

For instance, a customer of leading European distributor Würth Group sees the deployment of Microsoft Dynamics AX as facilitating the ability to implement new ideas across the organization. “Thanks to Microsoft Dynamics AX, we have been able to fully implement our ideas,” said Detlef Zemke, IT manager at Normfest Group, a customer of Würth Phoenix. “Our replenishment process has become leaner. For example, we have been able to reduce the workload on orders by 50 percent.”

GEA Group Denmark, a process engineering company, strengthened its market position by choosing Microsoft Dynamics AX to integrate its business information systems across three of its divisions.

The Microsoft Dynamics ERP connector for SAP Business Suite will be available for electronic download by Microsoft customers and partners in the third quarter of 2010, with more scenarios to follow. More information about the role of Microsoft Dynamics as a leading two-tier ERP provider is available at

About Microsoft Dynamics

Microsoft Dynamics is a line of easy-to-use, integrated and adaptable ERP and CRM applications that enable business decision-makers to quickly respond to market shifts, take advantage of new trends, increase their competitive edge and drive business success. Microsoft Dynamics solutions are delivered through a world-class network of reselling partners providing specialized services and additional innovation to help customers excel in their industries.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.


Tuesday’s Tip: When To Go With A Two-Tier ERP Strategy

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