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Question to Raise SAP BAIO Value / Customer Benefit Dynamics Limitation / Customer Impact

Is it important for you that the solution supports your industry requirements out-off-the-box?

A comprehensive solution with industry functionality out-off-the-box, requiring limited additional investment. Useful links: SAP Business All-in-One / SAP Best Practices

Microsoft Dynamics solutions depend on partner solutions to fill horizontal and vertical product gaps, resulting in additional investment. (1), (2), (3) Note: Dynamics AX acquired vertical partner solutions (retail, process manufacturing and professional service) and is working on integrating the functionality for out-off-the-box coverage.

Is it important for your business to invest in a solution that will help you transform your business in any direction you plan to take it without disrupting your business?

Start small and grow the solution as your business needs change. It is a flexible solution, supporting simple to complex business scenarios. You can activate functionality for any industry when your business requirements change. Useful links: SAP Business All-in-One fast-start program / SAP Enhancement Packages

When business requirements change customers are likely to buy additional add-ons and require custom development. Microsoft has nothing comparable to SAP Enhancement Packages. (3)

How would you like the idea of not having to upgrade your core business application ever again?

No more big bang upgrade projects. Due the unique upgrade technology, you can cherry pick the enhancements that are relevant for your business, which considerably reduces testing requirements and the overall disruption to your business. Useful link: SAP Enhancement Packages

Upgrading from an older to a newer version can be like a complete new implementation. Microsoft discontinues Dynamics proprietary technologies in favor of Microsoft platforms and tools. Custom developments and add-ons need to be re-written and implemented. Partners tend to over modify solutions which lead to upgrade risks. (3), (4), (5)

How important is it for you to have a BI solution deployed quickly at low cost?

Offers preconfigured BI capabilities at no additional cost. BI is easy to deploy since it has pre-built reports and dashboards. Useful link: SAP Business All-in-One BI functionality

Dynamics does not have an integrated BI solution, instead relies on multiple other Microsoft technologies. It is not clear which of the multiple technologies (e.g., FRx, Forecaster) will be available in the future. For example, PerformancePoint Plannig was discontinued without any replacement. (5), (6)

Would you care to have a transparent pricing and additional components specifically prepackaged and priced with SME needs in mind?

Purchase packages designed for companies like yours from a licensing point of view. You can configure your solution upfront and find out what it will cost. Useful link: SAP Solution Configurator

Buyers face following costly dilemmas: First may purchase too few concurrent users. Second, must purchase partner add-ons on top. Third, license additional Microsoft products to leverage product innovations (e.g., reporting, role-based UI). And fourth purchase a costly maintenance plan if you need more than self-service. (7), (8), (9), (10)

How important is it for you to keep your system operational at a low price?

SAP’s support offering supports your entire platform, reduces risk and costs of downtime through tools, methodologies and best practice service. And it protects your mission-critical business operations proactively. Useful links: SAP Enterprise Support

Business Ready Enhancement Plan provides basic support only. It is priced for 16% plus any partner specific support-fees. Customers usually require more advanced support services (e.g., pro-active services) which requires a more expensive support plan such as Microsoft Premiere Services (custom, about 30%). (8), (11), (12)

Would you prefer an open solution with no technology lock-in?

Preserve your existing landscape and run your databases and operating platforms of choice.

The tight integration of Dynamics with the Microsoft product stack makes customers dependent on Microsoft technology and requires them to stay current on all product releases. (13), (14), (15), (16)

COMPETITIVE TELEGUIDE – MICROSOFT DYNAMICS

TOP QUESTIONS TO POSE

USE THIS DOCUMENT FOR TARGETD CONVERSATIONS WHILE IN COMPETITION

AGAINST DYNAMICS AX, NAV, AND GP (FOCUS: SAP BUSINESS ALL-IN-ONE)

June 2010

COMPETITIVE TELEGUIDE - MICROSOFT DYNAMICS

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Key challenges faced by SAP when talking to a prospect before the competition:

Perceived as too big for the SME market

Perceived as being too complex

Perceived as being too expensive

Key challenges faced by SAP when Microsoft has talked first to a prospect:

During a sales conversation Microsoft and its partner will most likely position the ease-of-use of the Dynamics solutions as well as the integration capabilities and lower costs. SAP needs to be prepared to react to those statements. Ease of use:

Microsoft claim: ―Familiar to your people‖ and ―fuels business productivity‖

Dynamics solutions are easy to use due to the Office ―look & feel‖

Dynamics solutions leverage the role-centers which improve a user’s productivity SAP Counter-argue: Help the prospect understand that….

Ease-of-use of software goes beyond a ―nice looking screen‖. SAP Business All-in-One takes into account the business process for a complete user experience.

SAP also offers a customizable role-specific user interface, however, in addition provides various user interface choices that are suitable for specific business scenarios such as NetWeaver Business Client, SAP GuiXT, Duet and Alloy software, and interactive forms by Adobe.

Integration:

Microsoft claim:‖Works with your system‖

Dynamics products work with the Microsoft software and systems that customers may use today, enabling customers to generate more value from their IT investment.

SAP Counter-argue: Point out to your prospect ….

SAP’s openness of the solution and make your prospect aware that with Microsoft a customer gets locked-into the Microsoft world.

In order in order to leverage the latest innovations in Dynamics (e.g., role-centers, BI capabilities) they require additional software components and licenses.

Costs:

Microsoft claim: ―Affordability‖

Dynamics solutions are affordable solutions because users require almost no training as the solutions look familiar and the integration with the Microsoft product stack may lower the total cost of ownership (TCO).

SAP Counter-argue: Point out to your prospect ….

Dynamics solutions require partner solutions and customization which results in additional costs.

Microsoft is discontinuing the proprietary technology in Dynamics solutions which means that customizations need to be re-written, resulting in additional time and costs.

Customers have to purchase additional software components and licenses to leverage the full functionality of Dynamics and have to stay on all current releases.

Why SAP Business All-in-One is selected over Microsoft Dynamics AX, NAV, and GP

Integrated ERP system with comprehensive functionality Multinational functionality and support of multinational business processes Industry best-practices Scalable solution to support a company’s growth Adaptable solution Strong (industry) reference track record SAP and its partner ecosystem act as trusted advisors

Additional Resources:

Access Compete Now to search for the latest SAP internal competitive materials

Battlecard: Dynamics AX vs. SAP Business All-in-One Battlecard: Dynamice NAV vs. SAP Business All-in-One Battlecard: Dynamics GP vs. SAP Business All-in-One Battlecard: SAP BI vs. Microsoft BI

Lessons Learned Library – Microsoft Edition

COMPETITIVE TELEGUIDE - MICROSOFT DYNAMICS

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PreSales Guide: Dynamics AX PreSales Guide: Dynamics NAV PreSales Guide: Dynamics GP

Customer-facing document: SAP Business All-in-One Differentiation vs. Microsoft Dynamics Customer-facing document: Why SAP can Benefit your Business 2010 (use when competing against Microsoft Dynamics AX)

eLearning: Competitive Update: Gartner ERP Mid-Market Magic Quadrant on Tier 2-Oriented ERP for Product-Centric Companies eLearning: Beat Microsoft Dynamics NOW and Beyond

Your feedback is valuable. Please contact competitive_insights@sap.com and tell us how we did.

Disclaimer: The information in this document is provided solely for the internal use by SAP and its partners only and may be subject to changes at any time. No part of this presentation may be reproduced or transmitted in any form or for any purpose to third parties. This document contains informational material and among others material which is opinion derived from SAP research, methodologies, intended strategies and experience. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

Sources 1. Microsoft. Microsoft Dynamics Solution Finder. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/solution-finder.aspx. 2. —. Microsoft Equips Microsoft Dynamics Partners to Seize Vertical Opportunities. [Online] 07 13, 2009. [Cited: 07 01, 2010.] http://www.microsoft.com/presspass/features/2009/Jul09/07-13DougKennedyWPC.mspx. 3. Gartner. Quadrant for midmarket and Tier 2-oriented ERP for product- centric companies. 2009, pp. 22,24. 4. Microsoft, Directions on. Analyst Expert Call. 03 2009. 5. Directions on Microsoft. Overhaul for Dynamics NAV. 12 2008. 6. Gartner. Magic Quadrant for Business Intellience Platforms. 01 2010, p. 22. 7. Microsoft. Microsoft Dynamics Business Ready Licensing Editions. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/editions.aspx. 8. —. Microsoft Dynamics Service Plans. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/service-plans.aspx. 9. —. SQL Server 2008 R2 Pricing. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/sqlserver/2008/en/us/pricing.aspx. 10. Microsoft, Directions on. Analyst Expert Call. 06 2010. 11. Forrester. Enterprise Software Licensing And Pricing Update Q2 2009. 06 2009, p. 7. 12. Microsoft, Directions on. Analyst Expert Call. 09 2009. 13. Microsoft. Dynamics NAV System Requirements. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/products/nav-system-requirements.aspx. 14. —. Dynamics AX System Requirements. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/using/ax-system-requirements-2009.aspx. 15. —. System Requirements for Dynamics GP 2010. [Online] [Cited: 07 01, 2010.] http://www.microsoft.com/dynamics/en/us/using/gp-system-requirements.aspx. 16. Directions on Microsoft. Updated Plans for Dynamics NAV. 03 2010.