In this week’s episode of Enterprise Software Podcast, Todd, Bob & Darcy discuss the latest industry news.
The topics covered in this episode include:
- Indirect access court ruling
- Darcy’s Blog Article on 90 Minds’ Meeting of the Minds
- Sage Summit Agenda
- What Caused Amazon AWS S3 Outage
- FastTrack Expands to Dynamics 365
- 20% Commission on AppSource
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In case you prefer to read the transcript:
Episode 60 Transcription
BOB Enterprise Software Podcast, episode 60. That’s right. I said six-zero.
BOB Not bad, huh?
BOB Hard to believe.
BOB Alright. Well, the first thing we’re gonna about, I mean discuss, is the new LinkedIn format. Who likes the new LinkedIn format? Anybody?
TODD No, no.
BOB No? Nobody likes the new. But it’s so
TODD But it does so much little and so, so badly.
BOB Yea. Yea, I’m really not crazy about it either. There’s some things that I used to look at there pretty regularly that I either can’t find or they took away.
TODD Yea. I used to always sort my, ‘cause I don’t look at it that often. A couple times a week. So I’d sort it by newest post first.
TODD Can’t do that anymore.
DARCY It does not appear that you can. There’s not rhyme or reason to the way that they sort.
TODD Yea, it’s just random. It’s like every time you refresh the page, you get articles in a different order. And so, I don’t know. I mean, even less reason for me to go to LinkedIn anymore. So I’m done.
DARCY Maybe you should join Facebook now.
TODD No thank you. I hear that’s even worse.
DARCY You know they took away, though, that you guys didn’t use but we talked about is they took away tags. So I used to tag my contacts if they were partners or customers or other type of relationships. And then if I wanted to get a message to certain types of contacts, I could sort by that. Well they took that away. They put it in the sales version that you have to pay for.
TODD Oh. Oh yea. Yea, well it’s all in Microsoft Dynamics CRM. Is that? 365 or whatever we’re calling the product now.
DARCY Oh. Sure, of course.
BOB Dynamics 365, right?
DARCY And they took away where you can see, Bob likes to look at where you rank for profile views.
BOB Yea, we have a little contest internally to see who’s at the top of the list besides Hal.
DARCY But you know what else is good about that? Is if somebody jumps up all of a sudden, you know they’re leaving.
TODD Yea, that’s the main reason you looked at LinkedIn is when you see a person connect with like three recruiters in a week, it’s like, hmm.
TODD And they add to their skills. That’s the other dead giveaway.
BOB Right. Right. More profile adds, yea.
DARCY So you can turn that off so people can’t see when you change your profile, just FYI.
BOB Oh you can, okay.
TODD Oh really?
BOB Well I need to figure this stuff out. I mean, I could see that x number of people have viewed me in the last 90 days, but I can’t, and it’s down from last week a significant percentage, unfortunately.
TODD Oh my goodness, no.
DARCY Uh oh.
TODD Come on, listeners.
BOB That’s right. Come on, come on. But that’s really all I can see. And, now I have some posts where I can see how many views, people have viewed it and that’s improved, but that’s really the only improvement that I saw.
TODD Just doesn’t make you feel as good as the profile views.
BOB No, it really doesn’t. No. I’m feeling less linked.
TODD Alright, well enough about that.
BOB Enough about LinkedIn?
BOB I mean, there’s not much we can do about it, right? Except pay.
TODD Yea. But not a great first step for when you buy the product, pay that many billions of dollars for it and
BOB 26 or whatever it was.
TODD Yea. And then release a version that I think is pretty universally hated. So
BOB Yea, that’s too bad.
DARCY Alright. Let’s all move to SnapChat.
TODD Yea, no.
BOB Well we’ve got to get that stock price over $24 first.
TODD I’m good. I’m becoming more and more antisocial. So
BOB It’s a good thing you talk to Darcy and me. Otherwise you’d probably talk to nobody.
TODD I know. I know. I know. Just stay in my little Bat Cave in the back of the office. Alrighty. So there was another court rule. There was a court ruling that came out a couple weeks ago that kinda flew under the radar probably in the SMB market, but in the Enterprise market it was a pretty big deal. So there’s been a court case going on for quite a long time between a British drinks distributor, as I call it, an SAP where this distribution company had an order entry system that worked through SalesForce. Data was moved from the SAP database to SalesForce and then used by this order entry system. An SAP came along and wanted user license fees for the people using that order entry system that are essentially two systems removed from SAP.
BOB Yea, I was just gonna say it’s not a direct deal.
DARCY That’s amazing.
TODD Right, right. So they’re not accessing any code, they’re not doing anything in SAP, but they’re getting the data. And a court ruling came down a couple weeks ago in favor of SAP on this deal. And there was a lot of different opinions out there, obviously, about it. But SAP won a claim for 54 million pounds is what they’re claiming they lost in license fees on this deal. And we in the SMB market have had some conversation about this for years as
BOB As Cloud’s getting hotter.
TODD Cloud’s getting hotter, but also even going all the way back to when it moved to Sequel, you know, data started moving to Sequel server, less proprietary databases, more and more tools could access that data.
TODD And then obviously people were accessing it that maybe didn’t have a license for the particular application that created the data. Data warehousing. And the way this ruling reads right now is if you take data out of an ERP system and move it to a data warehouse, the users accessing that data warehouse will need some sort of license on the ERP or could be charged a license on the ERP.
DARCY That is insane. So if you just took an ODB ceiling to your data and pulled your data into Access or Excel, just some simple case, that would apply to that as well, right?
TODD Oh yea. Absolutely. Yea.
DARCY If you’re putting your data into spreadsheets out of your ERP, whoever looks at those spreadsheets needs to have a license of your ERP?
TODD Well when you think about, and this is thinking a little too big brother about this, but the move to Cloud makes enforcing these things a lot easier.
TODD Because then the software publisher knows exactly what you’re doing with that data. And they become truly the gatekeeper and can control access to it that they couldn’t when it was on your on premises Sequel server. So you know, there’s talk about appeals and there’ll be a lot of back and forth on this, I’m sure. And honestly, it’s at the enterprise level. You know, it doesn’t make sense.
BOB Right. That’s the difference, right.
TODD It is.
BOB Would it roll down to SMB? Is it conceivable? With Tier 1 it’s a different ballgame.
TODD I don’t know that it’s as conceivable that it rolls down to SMB, but I think it becomes a parameter that publishers build their clouds around.
DARCY Yea. And SalesForce is in the middle of this controversy, too. So you gotta wonder how they react and how people who are building their apps on SalesForce Data react to this, too. So that brings down a little bit of what I’d say, closer to.
TODD Right. And I think that the other thing is this company, the drinks distributor, they paid a license fee for the SAP integration product.
BOB That should cover it, you would think.
TODD You would think, but they’re saying no, that it goes beyond that.
DARCY And this is something we’ve talked about before with IOT and Cloud data, everything. It’s more of who owns the data and it’s a wild, wild west kinda situation right now. So
TODD Yea, yea. So stay tuned. I’m sure there’ll be lots more that comes out in that area, especially with the move to the cloud and just in general. But it was an interesting court case. We’ll have the link to a couple articles, one for and against the ruling. Believe it or not, there’s somebody that was for the ruling.
DARCY Who? SAP?
BOB Right. Probably a marketing guy at SAP.
TODD It is an analyst who does review SAP software on a regular basis, but anyways. I’m not saying that there’s any collusion there.
BOB You never know.
BOB Alright, next thing on the list looks like Meeting of the Minds, right?
DARCY Meeting of the Minds, the 90 Minds conference in San Diego, CA.
BOB Nice choice of site, there, by the way.
DARCY It was so cold, though.
TODD Not bad.
BOB Was it cold?
DARCY No, it was like in the low 50s.
BOB Oh wow. I didn’t think it got that cold in San Diego.
TODD We say that as three Floridians. Oooh, 50s, oooh.
DARCY Anyways, other than that, everything was so awesome. It was the best one yet that I’ve been to. 130 some people there. We had a new venue at the San Diego Hilton Resort. It was really nice. So it was great, some notable sessions. I wrote a blog article about it and linked it to the agenda ‘cause there was just so many sessions to talk about and there’s so much there, all different kinds of sessions. But some that I want to call out, what I found was interesting was there was a Dynamics 365 session. And that was Qantas CRM presented that.
BOB Our friend Peter Wolf, right?
DARCY And Eric Anderson. I was sitting in that session and I look around me and I see an Acumatica person on one part of the room. I see some Sage people in another part of the room and sitting in the Dynamics 365 session. And the next session after that was a SalesForce presentation.
BOB It’s a regular hodgepodge out there, the Meeting of the Minds.
DARCY It really is. It’s good and it’s been like that and it’s increasingly so as obviously partners are diversifying, but of course Sage had a very big presence there. And they did a Sage Live presentation. But I have to say it was kinda funny ‘cause the woman that did it, Nicole, was up there and she actually had two partners up there with her who have actually been, done gone through the onboarding and are doing the Sage Live product now. So she had them up there talking about their experiences, which was really interesting. And these are two very well know, respected partners. It was Jon Hoyt and Rhonda Macnamara. And so Nicole was up there and she talked about Sage Live and did a presentation about kinda where the market is and how it’s been responding and what it takes to get up and running and where’s the money in it. You know, where do partners make money in it and that kind of thing. I learned a lot of new things about. I was sitting there and I turned to another partner in the room and I said, oh I’m excited ‘cause I’m finally gonna get to see it. did you guys know I’ve never seen Sage Live? Of all the conferences, everything I’ve been to. I said I’m so excited. I’m finally gonna see it. And the partner said, same with me. Exactly. So we’re sitting there waiting to see it and she talked until there was one minute left in the session and then said, okay well let’s go ahead and take a look at it.
BOB Really? Oh, that’s disappointing.
DARCY And then she tried to open it up and they were having Internet problems.
BOB That’s terrible. Sage Live came out when we were all at Sage Summit 2015 in New Orleans. And there was really just kinda vapor there when it was just getting going. And now it’s been what? A year and a half? So it’s been a year and a half and I’m sure people are anxious.
DARCY But I am reassured it is not vapor anymore. For one thing, she said that in 23 days, they got 150 new customers in France, which is pretty good. I heard some numbers about Spain that are in the thousands. So it sounds like Spain’s doing very well. And my friends at Sage, I traveled with some Sage people this past week. And they all offered, people that I know and trust, offered to show me Sage Live any time I want to see it. So there you go. So it’s not vapor, it’s legit and it’s a big push right now. This is what Sage is talking about with their partners. Sage Live, Sage X3, and Sage People, which if we transition into that, that’s some other Sage news is that their sale acquisition. So Sage had purchased it owner and interest in Fairsail and then partnered with them to create their Sage People product, an HR cloud type solution. And then recently actually went ahead and acquired Fairsail wholesale. So now they own Fairsail product and it’s Sage People and it’s a big push that they’re encouraging partners to get onboard and start promoting that. So Sage Live, X3, and Sage People, big pushes. Sage Summit, if you look at the agenda, you’ll see some sessions on there. The agenda is published and so you can look at the agenda.
TODD Not a moment too soon.
BOB I know. It’s coming up pretty soon.
DARCY Well, you know. And I think with the short notice it’s hard with, some of the presenters have to get their. It’s not necessarily on Sage. Sometimes they’re waiting on some of the presenters to get their session descriptions to them, too.
BOB Right. Yea, I understand that.
DARCY But it’s there and I don’t think it’s 100% there, but you can get a pretty good idea of what you’ll be looking at. It didn’t seem like a lot of Sage Live sessions, definitely not a lot of Sage CRM sessions.
BOB Sage has CRM? Come on, I was waiting for you to join me on that one.
DARCY Anyway, but you can go check it out. We’ll put a link to the agenda. And then, but one thing I thought was funny and this will segue next, into the next segment we want to talk about is the link. If you go into the agenda and you click on the catalog, the URL is called sage.wegone.com.
BOB Get out of here.
TODD It is. I just brought it up. Wegone.
DARCY I mean, I’m sure it’s like Weg One or something that’s probably their software that they use or something.
BOB That’s terrible.
DARCY But speaking of which.
TODD Speaking of being gone and Sage, we lost a couple more.
BOB We need some music for this segment.
DARCY I know. We keep talking about getting some old music segments for things like this and acquisitions.
BOB Some Darth Vader music or something.
TODD You could power the building with a revolving door out front of Sage, but anyways.
TODD So we lost the CMO after ten years, which Santiago Solanas. Ten years. I didn’t know anybody had been at Sage ten years.
DARCY Well there’s plenty of people that have been there long time, for sure. But I think when you get to the C level and the EVP level is when you start to get more on the radar.
TODD Alright, so ten years. He has moved onto CISCO.
DARCY It’s CISCO. I wrote down Citrix.
TODD I think it’s CISCO.
BOB I was gonna say, if he went to Citrix, he’d be working for Kirill.
DARCY Yea, that’s why I thought it was interesting.
TODD Yea, no. His Twitter has that he went to CISCO, but it’s kinda funny, he has on his Twitter page as the banner picture is still him talking with Ashton Kutcher at Sage Summit. So
DARCY Eh, well.
BOB Gotta get the celebrity aspect in there, you know.
TODD Yea, so.
DARCY I mean I met him one time at Summit at the 90 Minds dinner and he’s super friendly and nice. We took a selfie together, he took it. It was pretty cool. But he’s based in Europe and went back and forth a lot. So maybe he just didn’t want to travel that much anymore.
TODD So then we lost another one on the Sage executive team. Jacqueline de Rojas, who was the MD of Sage. Don’t know how MD and CEO differ over there. I always get confused in the UK. Managing Director and CEO. There’s some sort of difference there, but she was Managing Director there for six months, I believe was the ten year there. And the article’s kinda funny that we’ll link to ‘cause it says “Sage Announce Shock Resignation”, but I don’t think anybody’s really shocked by resignations at Sage now, are they?
BOB Nobody in this room.
TODD No. But yea, less than a year. Not real sure where she’s moved onto, but Alan Lang will take over as interim MD for northern Europe, UK, and Ireland. And then one other quick Sage executive note.
TODD More. Now this is not anybody leaving. Wanna make that real clear upfront.
TODD Hey. At least not that we know of. We have a little bit of a communist dictator situation going on with Stephen Kelly. Nobody’s really seen him. There was a CEO Circle somewhere down in the islands, wasn’t it? Costa Rica.
BOB Costa Rica? Ooh, nice place to have
TODD Yea. So those of you that do not work for a partner organization, Microsoft doesn’t do this too much anymore, I don’t think. But used to be as you hit certain goals as a partner and stuff, you were invited to a nice retreat somewhere with the executive team of the publisher. And so Sage calls that the CEO Circle. But this year, the CEO did not appear at the CEO Circle.
DARCY Well, and I think what’s noteworthy about that is that it was billed when it was first introduced. It’s different from past years. I think it was more like a President’s Circle or something that was more, North America had theirs. But I think this was more of a global one, but it said Sage CEO Circle recipients will join this exclusive celebration, blah blah blah, with Sage CEO Stephen Kelly and other Sage leaders who enjoy a little business and a whole lot of fun, blah blah yadda yadda, but that was how they billed it. Hey, spend time with Stephen Kelly.
TODD Not even a hologram, I mean just nothing.
BOB Yea. That’s too bad.
DARCY Well I would have been disappointed. You guys know that.
TODD Oh I know. I know. But then on top of that, when you look at the websites for Sage Summit US, Canada, and UK, there are speakers listed from Sage, Alan Laing, but no Stephen Kelly.
BOB Which is surprising because he was out at, when I was at Sage Summit a couple years ago, he was out and about and very prominent and he was all over the place.
DARCY Yea, except for when I was trying to get my selfie.
BOB Yea, well.
TODD Yea. Well I even saw him jogging in the morning. I wasn’t jogging obviously, but I was on my way to get breakfast and saw him run by.
DARCY Well I hope that he’ll still be there. Maybe he’s under promising and over delivering on this one. So we’ll see. It’s funny ‘cause it’s so different. Sage Summit’s so different this year. It looks like a Microsoft conference because all the speakers are from Sage.
TODD Yea, yea, yea. Well who knows? Maybe they’ll have Satia at Sage Summit. That’s be nice. Without Stephen Kelly.
BOB Trying to get an … license payment on you.
TODD Yea exactly. Alright, so enough about Sage and executives.
BOB That was a lot of Sage news. I’m tired.
TODD I know.
BOB It’s like you went from Meeting of the Minds to all over the world with Sage.
TODD I know. I know. So other related news, Cloud news, I guess you’d say, they had a pretty massive Amazon AWS outage here in the United States, East Coast especially.
BOB Pretty massive, that doesn’t do it justice. You thought the world was falling apart there for a second.
TODD Yea. Even GPUG’s website was affected so you know it was bad.
DARCY That’s GPUG.com.
BOB That’s right. Thank you.
DARCY You’re welcome.
BOB Darcy’s one step ahead of me today.
DARCY You’re predictable.
TODD So apparently it was due to a typo.
BOB That’s just. Wow, that’s hard to believe. Somebody had to have lost their job over that, but go ahead. Go ahead and elaborate.
TODD So somebody was supposed to bring down a very limited number of servers for maintenance or replacement or something. And apparently brought down much larger swath of servers and systems, and this was in the S3, which is their storage service. So many many many many websites who store content
BOB Yea, lots.
TODD Including GPUG.com.
DARCY Websitepipeline.com, however, was not affected.
BOB Oh geez. Listen to that. Shameless.
TODD Um, so anyways, so there was literally a typo by one person as I said. I think we’ve all forgotten the where clause in a sequel query somewhere along the line and wiped out a table when we meant to take out one record.
BOB And there’s no undo button in there that I’ve ever found.
TODD No. No, no. So that’s basically what happened. But you said basically you saw a presentation going on that actually got shut down?
DARCY Yea, we’ll link to it. There was a conference at Amazon AWS was having a conference and someone was presenting. And what appears to have happened was he could not access what he was trying to access on the stage. And then all of a sudden people started filming and he was like, what was it called? Sub 3?
DARCY S3’s down? You’re kidding right now. Oh. Okay, everybody’s taking out their cameras and recording this. So we’ll post to that video, but people actually, he was trying to present something that was on that server.
BOB That was on that server and no dice.
DARCY Yea, at their conference. Pretty embarrassing. So we’ll share the link to that. It’s pretty funny.
BOB Wow. That’s a big, I mean you were talking earlier offline about how some of those servers had not been rebooted in forever.
TODD Yea, that was part of what they were talking about. I mean it’s a whole, there’s, everybody needs the cloud. I mean, it’s amazing and everything else, but it is, you have a more single point of failure with things like that and obviously having that kind of effect so widespread is definitely interesting.
DARCY Well, I think with the consolidation there’s really only the few top cloud platforms right now that are really kind of vying for the top spot, right? And so we’re all on them. And so we’re all much more vulnerable if it was diversified more, right?
TODD Yea, no it’s a, although Google is definitely making a big play. I’ve been reading recently that they’re going big time after AWS and Azure.
BOB But it was only a typo. I mean, it wasn’t
DARCY Nothing malicious. It wasn’t the Russian government.
BOB That’s right. The Russians didn’t hack AWS that we know of, but
DARCY I brought it up. I’m so sorry.
BOB Who started it today? It wasn’t me.
TODD Now we’re on a watch list.
BOB Right. The CIA’s probably tapping this right now.
TODD Probably? Based on the news, they are. Anyways, moving on. So staying in the cloud arena, SBS Group announced that they are now an indirect cloud solution provider.
TODD Yea, I have no idea what that stuff means.
BOB Tier 3?
TODD It actually says in the press release, this is, I mean, Microsoft come on. Get this crap together. They’re an indirect cloud solution provider, formerly called a Tier 2 distribution partner. It’s like, how can you? That name hasn’t been around very long to begin with and now you’re gonna change it completely.
BOB So you have CSPs and ICSPs.
DARCY And there’s many acronyms to go with it. I just looked at it and said, I can’t. I can’t. It’s just, let’s talk about it and talk about how confusing it is. We’ll post a link to the article, but we’re not gonna try and explain it.
TODD The only other thing I thought was interesting is they actually have created a new company name for this part of their business. So they are Stratus Cloud Alliance. Um, no comment. But I’m seeing that more and more where traditional Microsoft partners who are getting into the business in some sort of format where they expect to sell through other Microsoft partners, are changing their name to kind of distance or create a separate entity.
DARCY Yea. That’s definitely happening. I like that name Stratus, though. That’s clever.
TODD Okay. Cloud Alliance. The Alliance part is the one that, I don’t know. Anyway, moving on. Alright, so. Still in the Cloud world. We have really really big news from Microsoft around their Dynamics 365 product. This has actually been a couple weeks ago now. So for those of you that don’t know, Microsoft has a program or product. I don’t know what you would call it. a department called FastTrack. FastTrack was originally with the Office 365. If you were a company of a certain size, 250 seats or more, and you wanted to move from your on premises office installation to Office 365, Microsoft would provide the services for free.
BOB Basically migrate your exchange server into the cloud and then show you how to get the other stuff.
TODD Exactly, exactly. So as somebody, people I know have expressed to me, Microsoft partners have lost tens, hundreds of thousands of dollars in services over the past couple years because larger companies take advantage of this program from Microsoft rather than using a partner.
BOB Price is right.
TODD Absolutely. Absolutely. So the partner sells the license. You know? 8 bucks per month, and they get their 8% on top of that, but don’t worry. They’ll make it up in services. No, sorry, hold on. We’ll take that, too. So that’s been going on and off as 365 for quite a while. A few weeks ago, Microsoft announced a little bit quietly that they’re now expanding that to Dynamics 365. So now all of this so far appears to be Dynamics 365 CRM. I know it’s not CRM, but old CRM and old AX. Let’s just call it that.
TODD It doesn’t seem to be for the business/NAV/Madeira offering yet.
BOB Not yet, right?
TODD Not yet. But what that is saying is that if you have, let’s say you’re on SalesForce, and you have 250 seats or more, and you want to move to Dynamics CRM, your partner can sell you the licenses. And then you can apply to Microsoft and if they deem you worthy, they will do the implementation of CRM for free for you. So they will migrate you to SalesForce, they will implement for you. As the article says that we’ll link to on the Microsoft website, the question is asked what does this mean for the partner? And the response in writing is, there are many onboarding tasks that are not covered through FastTrack that create opportunity for higher value partner service offerings. It’s like, okay that sounds a bit ominous.
BOB Such as.
DARCY Yes I know, waiting for the such as.
TODD So the stuff we don’t want to do, go ahead. It’s yours. But then the next sentence is really interesting. It says, in addition, any FastTrack customer that is not already working with a partner will be offered the opportunity to be connected to a qualified partner. So what that says to me is, we’ll do this by ourselves. We don’t really need a partner. I mean, we’ll be more than happy to take the licenses and the services on these larger implementations. And I think that’s where this is headed. I mean this is, and we had heard a few months back, I think Wayne Schulz told us, somebody told us who went to the last partner conference, Worldwide Partner before it changed names, that they had announced that they had added like 4,000 plus people to this department, this FastTrack department. And they are ramping up to be a services company in the Dynamics base, there’s no doubt about that. And they’re going after, let’s be honest, the clients that most partners would love to have. I mean, those 250 seats and above are the ones.
BOB Those are the ones that don’t come around every day.
TODD That’s right. Especially on the CRM side. That’s where the serious money is made.
DARCY Well that’s what I was gonna ask. So I mean, are they gonna be doing AX as well?
TODD Oh yea.
BOB Yea, and that’s a lot of work. That’s not, you know.
TODD Sure, but again if you are a prospective customer and you know about this, and you have the option to pay a partner or get it free from the publisher, I mean that’s a no-brainer. You’re not even. I mean, even if it was the same price, you’d still go with the publisher just ‘cause you’d feel like you’re getting a more direct relationship.
BOB Right. From the people that write the code.
BOB Yea, but at the same time, you get all these Dynamics partners, many of whom have been working with Dynamics AX, as an example, for a long time. They’ve got experience.
DARCY Well it’s not easy to onboard a new Dynamics AX consultant. So that’s what, you know, so all of a sudden. Is Microsoft going to start hiring away the AX consultants that the partners have trained up?
BOB See, that’s a good point.
DARCY I mean, where are they gonna get people that do AX?
BOB And what percentage of these 4,000 people that they say they’ve hired are AX resources as opposed to CRM resources?
TODD I don’t know. I mean, the article that they put out there said that FastTrack now serves more than 4,000 new customers every month.
TODD So I’m assuming that’s on the Office 365 side.
DARCY Oh Office 365. Okay.
TODD Right. So that’s the FastTrack side. And that they have onboarded 22,000 customers in the Office 365
TODD Well you say yea, but that’s 22,000 customers.
BOB Recurring payments.
TODD But it’s also 22,000 customers that the partner
BOB Never got their hands on.
TODD Didn’t get any services money on, you know? And at a 250 seat level, I mean you’re talking minimum, what? 10, 12 grand for Office 365 move?
TODD That’s a lot of money they’ve taken out of partners’ pockets.
TODD So again, partner being used in loose terms there.
BOB So will FastTrack have the same level of success with Dynamics 365 as it’s had with Office 365? I mean you really can’t compare the deployment.
TODD Hell no.
BOB It’s apples and oranges.
TODD And I think I can finally, and nobody at Microsoft will listen to me but I’ll say it anyways. The difference between Office 365 and Dynamics 365 is when people move to Office 365, they weren’t changing products. All they were changing was the delivery of that product.
TODD They were still using Excel. They just were using Excel under a different licensing delivery method.
TODD When people are on SAP and they move to AX, 365, whatever you want to call it, that’s a real change. That’s not. Now if you’re talking about people that are currently using AX on premises, and we’ll get to that in a second, moving them up to the cloud, sure, that’s not as big a change. But if you’re gonna truly migrate people from SAP, PeopleSoft, hell even GP to the business edition
BOB Yup. Or QuickBooks
TODD That is a true product change. That’s very different than just moving from Office to Office 365. And I don’t think that anybody at Microsoft gets that. I don’t think that’s, and I think that’s obvious by this FastTrack offering. They assume that this is the same type of migration. All we gotta do folks is just unplug it from their on-prem exchange server and plug it into our exchange server.
BOB The Dynamics world is different than other pieces within Microsoft.
TODD Yea, but you can’t say that anymore.
BOB But I just did.
TODD I know. If you work in Microsoft, I don’t think you can say that anymore, I don’t think.
DARCY So I’m picturing, and this just reminded me of something. So if you’re going to Office 365, I have a good friend who said he’s an admin in his Office 365 and whenever he goes on his certain monitor, he goes to click on admin, but it always accidentally shifts him over to the Dynamics 365 button.
DARCY Yea. Seriously, like it keeps happening. He’s like, I think it’s staged position right there just so I’ll accidentally do that. And when I look at mine, I’m not on admin so I don’t have that problem because they
BOB I believe it.
TODD We’ve had this issue in the GP world on PartnerSource for years. They have this program on PartnerSource called the autobill which basically says that if a customer’s on autobill, you as the partner are taking responsibility for paying their enhancement. Period. So if they don’t pay, you still owe it. Well of course, nobody wants their customers on autobill.
TODD So you set them all to no. Mysteriously, they keep getting set back to yes. And so I literally have a calendar reminder in my Outlook that every month I go in and look at my customers and move them from yes back to no.
BOB Really? Every month.
TODD And they’ve just been doing, I mean for years they’ve been doing this to you. And now when you set them back to no, you have to say why you’re setting them back to no, but
DARCY Oh I can only imagine what you do. Is that a multiple choice or do you get free form on that, Todd?
TODD No, they don’t give you free form. Trust me.
DARCY I can imagine what you would say.
BOB It’s my customer, dammit.
TODD It’s just absolutely shady, but what are you gonna do? You just sit there and you set it back to no every freakin’ time.
TODD Yea, so anyways.
DARCY You could call it shady or you could call it smart, you know. I’m trying to be optimistic about this.
BOB I wonder how long after you check it from yes to no does it realize that you’ve made the change and switch it back?
TODD There’s probably a whole department of people writing algorithms to try to figure out the best way to change that without you noticing. Anyways, alright. So related to 365, 365 AX-On Premise is back.
BOB It’s back.
TODD And the people rejoiced.
BOB Yes. I know a lot of people that were quite happy to hear that.
DARCY Wait, are you gonna say, yaaaaay.
TODD Yaaaaay. Anyways, so for 365 AX7
BOB AX7. Right. The latest version was gonna be Azure only.
TODD Cloud only. Azure only. Yup. It would not work on ..? So now you have three options and I love the terminology here. So you have 365. Then you have Edge.
BOB All Cloud all the time?
TODD You have 365 on the Edge. On the edge of the cloud.
BOB On the Edge browser?
TODD No, no. It has nothing to do with the browser. There’s limited terms availabile, apparently. So it’s a very small dictionary at Microsoft. So Edge as if refers to 365 means that you’re data is in the cloud, but your application runs local, which I don’t know. Somebody wants that, I guess.
BOB Right. The lawyers at SAP for sure.
TODD Yea, absolutely. They’re all about that. So that’s Edge. And then we’re not allowed to say On Premise anymore. It’s AX Local.
DARCY Wow. That’s like old school.
BOB Yea. After all the talk with Ed Kless about On Premise and getting it right.
TODD I know.
BOB We’re just going back to local.
TODD Yes. So now you can run AX7. Or not now, in June maybe.
BOB This summer. That’s what they’re aiming for, right? June.
TODD Yup. You can run AX7/365 Enterprise, all local. You will lose functionality. So if you do this.
BOB Of course.
TODD You will not have access to Power BI, Aggregated Views, and the Azure machine learning capabilities. So that is no longer available to you. I don’t know why Power BI is not available. That seems really strange.
BOB Right, right. Power BI is just the rage. You would think putting that on the no list is just
DARCY Well because they don’t want you to do it.
BOB Yea and that’s a big loss.
DARCY Well that’s the point, I think.
BOB That’s too bad.
TODD So my theory on this is this is new Coke. So just like Coca Cola took away the original recipe
BOB Back in the 80s, was it?
TODD Yea. Known and loved by millions and replaced it with new Coke.
TODD And said you couldn’t have old Coke. So everybody started hoarding old Coke much like people won’t get off of AX 2012. And then eventually Coke came back with Coke Classic.
BOB Coke Classic.
TODD Yes. And they took credit for bringing it back. They listened to the people.
TODD So now Microsoft bringing back, and they should call it AX Classic. Forget local. AX Classic.
BOB AX Classic. You heard it here first, ladies and gentlemen. Todd McDaniel renaming a product.
TODD I won’t say it’s known and loved by millions, but let’s say it’s known and tolerated by thousands. They bring it back and now they’re taking credit like they have discovered this amazing new option for their customers.
TODD Exactly. It’s like. So anyways, coming this June, you will be able to continue using, and according to what I read, and I’m not your attorney, your current On Premise license will work for the new 365 local version. There will be no license transition required. It will be as long as you’re on annual enhancement, you’ll be able to move to that without going to the subscription basis that was 365 Cloud. Now that could change. Who knows what all the fine print is.
BOB Right. I was gonna say, that could very easily change.
TODD And I have no idea what Edge does to you. Who knows how those licenses work? But you have those three options now with 365 Enterprise AX version. And then the last thing in 365 world, then we’ll stop talking about this, there was an interesting article we’ll link to where a developer was showing you how to get your application up on AppSource. AppSource is the new Microsoft business software marketplace, I think was the best way.
BOB The store for business apps.
TODD It’s the app store for Microsoft business apps. And it’s an interesting article, talks about how to get it up there. But one of the screen shots that’s linked to has an interesting portion right there in the notes, the third screen shot down where it talks about the CSP, Cloud Solution Providers, reseller incentive.
BOB Yes. This was this article by this, what was it, NAV MVP, right?
BOB Gunner’s Blog.
TODD Gunner Gestsson. I’m sure I’m saying that wrong.
BOB My First Dynamics 365 Extension: Mistakes I Made. And he’s just going through his experience.
TODD Right, right. It’s a great article if you do want to try to get something up onto the App Source site.
BOB Yea. It was really detailed.
TODD But if you do that, you need to know that Microsoft will take 20% of your revenue if you sell through the App Source page. And you don’t have a choice on that.
BOB He didn’t write that.
TODD He didn’t write that.
BOB But you were eyeballing his screenshots.
DARCY I know. I can’t believe you caught that. Good catch.
BOB That was pretty good for, you know, old eyes.
DARCY I know that wasn’t the purpose of his articles.
BOB No, but it is right there in the middle. Third screen shot down.
DARCY I was very surprised to see this. I mean, I guess I just hadn’t considered. I mean surely Microsoft is gonna take their piece if your product’s on their app store. Of course, right?
TODD Yes. It’s their Marketplace Service Fee is what they’re calling it. Those are capitalized letters, probably trademarked, so don’t try to steal that.
BOB Marketplace Service Fee.
TODD Marketplace Service Fee. Now you have the option
BOB MSF is what you meant to say.
TODD Yes, MSF.
DARCY Now take out the S and
TODD Anyways, now you have the option on this page, it defaults to no, but if you change that to yes.
BOB Does it stay there that way? Do you have to
TODD Well yea, probably. If you change that to yes, Microsoft will kindly pass along their 20% to the partner involved in the deal. So the partner will receive the 20% rather than Microsoft. Now if you happen to leave that as no, the partner gets 0%.
DARCY But is this across all deals or do you get to specify by deal? Like some deals. You just have to have one setting.
TODD No. This is for your application.
DARCY So what do you do if you say I want it to go to the partner and there’s no partner?
TODD Then Microsoft takes their 20%.
TODD Yea, yea, yea. No, it’s. Microsoft will waive its 20% Marketplace Service Fee so that your payouts will get the benefit of our vetted resellers selling your offers.
BOB Resellers have been vetted now.
TODD Yea, let’s not get into that.
BOB Okay. That’s news. Have you been vetted, by the way?
DARCY Are you on there?
TODD So anyways. So there is a 20% if there is a partner involved if you check this as yes. So that all being said, it you put an app or if you’re thinking about an app on App Source, you might want to raise your desired revenue by 20% because you will lose 20% one way or another. Now I would assume if you leave that as no and then you have a partner involved and you want them to get something, you’ll have to work that out outside the app store, 20% to Microsoft there, something else direct to the partner. But I don’t know how the partner would prove
DARCY That’s what I’m wondering. Like, how do you know it came from the partner and how do you tie it back to the partner and make sure your partner’s getting credit? But otherwise
TODD Yea. If you leave this as no, and all of a sudden a partner picks up an existing customer, and they use your product and then the partner says, hey I want my commission on that, then what are you going to say? No, I’m giving it to Microsoft instead? I don’t know. There are so many things that are going to have to be worked out. And the amount of money is so small. I mean, $24 per user per month for the full ERP. What’s an add-on gonna cost? $10?
TODD $5-10 per user per month? I mean.
BOB And I don’t see any other options besides yes and no.
TODD No, there’s no opt out, not applicable.
DARCY I think Todd wants a free forum comment there.
TODD Yea. Exactly. So anyways. So we’re learning more and more about the new world of 365 and App Source and
TODD No, not edge. That’s just amazing. Anyways, so it’s a new world for partners, ISVs, everyone.
BOB It is. It’s gonna take a lot of getting used to.
TODD And it will change. I mean, there will be changes. There’s already been changes. Tier 2 is now indirect, whatever that means.
DARCY And that’s what we’re here for, to try to. You guys, listeners, challenge us to try to keep up with the changes so we can tell you about them and
BOB Right. Yea. Maybe we should just all go out and get a Coke Classic.