SAP Business All-in-One vs.

Microsoft Dynamics AX Competitive Guide

SAP positions SAP Business All-in-One as a set of industry solutions for the mid-market that can be deployed rapidly with predictable cost.
Note: This document is intended for use only by Microsoft employees and Microsoft Dynamics ERP partners. You may not use, copy, modify, or distribute this guide; create derivative works of; or otherwise attempt to modify this information, in whole or in part, in any manner or form, for purposes of building a similar or competitive product or service.

Executive Summary
Business All-in-One is a preconfigured version of SAPs Enterprise Business Suite, with a templated implementation program designed to make it faster and easier to deploy in mid-sized businesses. It primarily targets businesses with 1,000 2,500 employees. SAP All-in-One is delivered through a channel of about 1,400 partners who collectively offer over 800 industry1 specific configurations of the solution. To effectively compete against SAP All-in-One, avoid comparing features and functions. Such comparisons divert attention from the key differentiators of Microsoft Dynamics AX: ease of use, ease of interoperability, and low cost of ownership for the application and platform. In addition to these differentiators, share how interoperability with Microsoft Office can accelerate user adoption and provide business intelligence and collaboration at a low cost. You should provide research evidence early in the sales cycle. Several analysts have repeatedly positioned Microsoft Dynamics AX favorably: http://www.microsoft.com/presspass/itanalyst/d efault.mspx. Also use customer evidence of solution fit, cost savings and ease of use.

SAP Business All-in-One

This section provides more detailed information about the SAP All-in-One offering.

Competitor Value Proposition

SAP Business All-in-One is positioned as a single configurable solution to help you manage everything from financials, human resources, procurement, inventory, manufacturing, logistics, product development, and corporate services, to 1 customer service, sales, and marketing. SAP may also claim the following benefits: Strong Horizontal and Industry-Specific Functionality including financials, sales, service, procurement, logistics execution, product development, manufacturing, human capital management and business analytics functionality, along with 800 industry-specific configurations provided via its partners. Rapid Implementation based on industry best practices. SAPs Fast Start Program offers preconfigured, preinstalled software and hardware solutions designed to save customers time, effort and money. SAP will promote the program as being based on best practices learned from thousands of industry-specific implementations. Increased visibility from integrated analytics that help uncover business risks and opportunities. Scalable solutions in terms of both functional depth and performance to grow and scale along with the business.

Competitor Product Summary

Current version: SAP Business All-in-One has the same code base as SAPs flagship product, 2 SAP ERP 6.0 The current release is built on SAPs technology stack, NetWeaver 7.0. The product is available in 50 countries and per SAP, supports all major international languages and currencies. SAP provides pre-configured templates and Best Practices for 24 industries ranging from consumer goods to public sector. License types: SAP offers several types of user licenses, including Developer, Professional, Limited Professional, Employee and Employee Self Service (ESS). Volume discounts may be offered. Deployment options: On-premise or hosted through partners. For details see: http://www.sap.com/about/newsroom/pressreleases/press.epx?pressid=12479

SAP Business All-in-One solution brief, http://www.sap.com/sme/solutions/businessmanagement /businessallinone/index.epx Page 1 | Microsoft Confidential

SAP Business All-in-One Press Fact Sheet: http://www.sap.com/about/pdf/Fact_Sheet_SAP_Busin ess_All-in-One.pdf

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SAP All-in-One vs. Microsoft Dynamics AX | November 2011

Microsoft Key Proof Points

Simple: The intuitive user interface of Microsoft Dynamics AX can enhance usability and reduce learning curves and training costs. Microsofts RoleTailored design enables people to access just the information they need, where and when they need it. See Business Productivity Whitepaper for Microsoft Dynamics AX 2009: https://mbs.microsoft.com/partnersource/marke ting/marketingcollateral/whitepapers/mdaxbusin essproductivitywhitepaper.htm and Designed to Enhance Productivity: https://mbs.microsoft.com/partnersource/marke ting/marketingcollateral/whitepapers/msdx_ax20 09businessproductivity.htm Furthermore, Microsofts Self-service Business Intelligence (BI) provides self-service access to information and analytical tools to improve productivity and reduce demand on valuable IT resources. Microsoft Dynamics AX 2012 BI and Reporting includes more than 800 Microsoft SQL Server Reporting Services reports, 11 SQL Server Analytics Server data cubes, and enhancements to the framework. Some selfservice BI exists within SAP but customers often need to deploy SAP Business Warehouse which requires its own server, database, and security scheme. See Empower Your People with Self-Service BI: https://mbs.microsoft.com/partnersource/marke ting/marketingcollateral/whitepapers/msdax_20 09empowerpeopleselfservicebusintel.htm

Powerful: Microsoft Dynamics AX 2012 offers proven scalability, robust functionality out of the box and rich, prebuilt, industry-operational functionality for manufacturing (process, discrete, and lean), distribution, retail, public sector and service industries. Microsoft Dynamics AX 2012 has benchmarked performance of 5,200 users and one million lines per hour across 10+ workloads. https://mbs.microsoft.com/partnersource/deploy ment/documentation/whitepapers/ax2012_benc hmarkpapers. With Microsoft Dynamics AX, users can quickly configure and activate out-of-the-box workflow templates without the need for IT/developer assistance. The Graphical Workflow Editor enables drag-and-drop functionality for workflow creation. Work Item Queues help users control what they work on and load balance across the team when necessary. Encourage the prospect to have SAP demo their workflow capabilities and compare the ease with which workflows can be defined. Agile: Microsoft Dynamics AX offers a unique model-driven, layered architecture that accelerates software development, requiring less coding than building from scratch and easing maintenance and upgrades. Unified, natural models make modeling simple businesses fast and easy and yet still provide the richness and flexibility to represent the most complex organizations. Highlight the pre-built interoperability with the Microsoft Application Platform, including Microsoft SQL Server 2008 R2 and Visual Studio 2010, and other Microsoft technologies such as

Microsoft Office 2010 and Microsoft SharePoint 2010. This allows developers to spend less time on technical interoperability and compatibility, and increases the breadth of developer resources available to ISVs. Where appropriate, discuss Microsofts cloudbased services that are cost-effective, easy to deploy and use, and interoperate fully with your existing on-premises or hosted Microsoft Dynamics AX implementation. Promote Microsoft Dynamics AX as a cost effective two tier solution in divisions and subsidiaries of large corporations using SAP at the headquarters. See http://www.microsoft.com/en-us/dynamics/erptwo-tier.aspx for more information. Use analyst reports such as Gartners Magic Quadrant for ERP for Product-Centric Midmarket Companies,http://www.gartner.com/technology/ mediaproducts/reprints/microsoft/vol10/article22/artic le22.html) or The Forrester Wave: Order Management Hubs, Q3 2010 (http://www.microsoft.com/presspass/itanalyst/d efault.mspx) to establish credibility and demonstrate industry support for Microsoft. Point out the cost-of-ownership advantages of Microsoft Dynamics. Use analyst and customer evidence as well as tools such as http://www.microsoft.com/global/enus/dynamics/RichMedia/ErpBenefitsCalc/indexA X.html and http://nucleusresearch.com/microsoft-roisupport-center/ to show the rapid return on investment (ROI) that Microsoft Dynamics AX can provide to customers.

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How Microsoft Wins

Meeting Core Business Requirements Companies invest in ERP to gain a competitive edge. As a result, meeting customers functional requirements is extremely important. While you should highlight product fit, avoid comparing features and functions. Instead, focus on the ability to solve business problems through the capabilities of Microsoft Dynamics AX, Microsoft Office and Microsoft SharePoint. Strong core and industry-specific functionality, a broad portfolio of specialized vertical solutions, and interoperability with Microsoft collaboration technologies can help customers realize a faster time to value through faster implementation times and broad user adoption. Enhancing Industry Solutions Lead the discussion with the Microsoft strategy of providing customers with the right solution for their specific industries. Be sure to highlight your partner firms experience in the target industry. Then highlight how Microsoft implements this strategy: Offer a strong product base with broad horizontal functionality and industryspecific extensions to provide out-of-thebox functionality for large vertical segments. Encourage and certify applications developed by the Microsoft ISV community, which has deep industry knowledge to complement the features and functions of Microsoft product pillars.

The ability to combine capabilities from multiple industries for one customer is increasingly importantmanufacturers often manage their own distribution and sometimes operate their own direct retail operation, and large numbers of customers in all industries have segments of their business that operate with the project structure of service industries. Microsoft Dynamics AX 2012 industry capabilities make the power of this functionality available to all customers. Improving BI and Decision Making SAP has a strong BI offering through its acquisition of Business Objects. Knowing that SAP will be highlighting its BI assets as part of the sales cycle, you should proactively discuss BI as well. Microsoft Dynamics AX delivers selfservice reporting and BI capabilities that can help companies quickly access data and reduce requests to the IT department for reports and information. Business intelligence must be an embedded part of the application, not a separate tool that requires users to take extra steps and switch contexts. Rich, embedded BI is at the core of Microsoft Dynamics AX 2012 with: More than 30 Role Centers shipped out of the box 11 SQL Analytics Server Cubes behind those Role Centers Key performance indicators tailored to each process and role based on those cubes Over 800 out-of-the-box reports, all delivered through SQL Server Reporting Services

Rich interoperability with Microsoft Excel to surface report output and enable analysis Standards-based data interoperability with PowerPivot for ad hoc slicing and dicing InfoParts providing in-context BI fully embedded throughout the Microsoft Dynamics AX 2012 user experience Focusing on Innovation Microsoft invests stongly in research and development for Microsoft Dynamics AX, including a well-defined road map that focuses on innovation, collaboration, and productivity all so that customers can implement the solution quickly and see a fast return on investment. For more information, see the Microsoft Dynamics AX Statement of Direction: https://mbs.microsoft.com/partnersource/marke ting/statementofdirection/statementofdirection Position Business All-in-One as not appropriate for mid-sized companies. SAP offers a SaaS ERP product, Business ByDesign, which targets companies with 100 to 1000 employees. SAP positions All-in-One for companies up to 2,500 employees. So, in effect these two products overlap with companies below 1000 employees. Raise the question whether All-in-One is appropriate for companies below 1000 employees. See http://www.cio.com/article/593969/SAP_Co_CEO _Business_ByDesign_is_Not_a_Fantasy_ and http://www.sap.com/usa/sme/solutions/business management/comparebm/index.epx

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Top Questions for SAP

Customers should ask SAP the following questions about difficult or expensive issues that customers considering SAP might face: 1. How many organizations like mine have used Fast Start? Is the methodology really a template with predefined processes and configurations? How will the implementation be affected (in terms of time and cost) if I deviate from your best practices?

Handling Objections
This section provides common objections that SAP may give as reasons to choose its solution instead of Microsoft Dynamics AX. SAP Claim: Microsoft Dynamics AX is more of a midmarket solution and is not appropriate for a large, complex business. Microsoft Response: (Do not get lured into a feature/function comparison against SAP. Focus on the specific needs of the prospect.) Microsoft Dynamics AX 2012 supports the unique requirements for businesses in 36 countriesall from a single-instance deployment of the software. Multiple currencies, multiple time zones, multiple languages, and compliance with multiple banking and reporting standards and legislative codes give you the global coverage that you require. Furthermore, Microsoft Dynamics AX 2012 has benchmarked performance of 5,200 users and 1 Million Lines per Hour across 10+ workloads. https://mbs.microsoft.com/partnersource/deploy ment/documentation/whitepapers/ax2012_bench markpapers Case studies of customers with 1,000 4,000 employees using Microsoft Dynamics AX are available at http://www.microsoft.com/casestudies/Case_Stud y_Advanced_Search.aspx

SAP Claim: Microsoft requires a number of third party or ISV solutions to provide a complete offering. Microsoft Response: Microsoft Dynamics AX offers robust core functionality out of the box, with over 1,000 new features and enhancements in Microsoft Dynamics AX 2012. Microsoft also uses ISV solutions to bring deep industry expertise to customers. Business partners who specialize in specific industry solutions provide rich insights and leading-edge business expertise. SAP Claim: Microsoft Dynamics AX offers too much flexibility, making compliance a challenge. Microsoft Response: By actively managing a balance between compliance requirements and agile business practices, organizations can minimize risk, increase operational efficiency, and successfully build a foundation on which to grow. Microsoft Dynamics AX Managing Compliance, https://mbs.microsoft.com/partnersource/marke ting/marketingcollateral/whitepapers/MDAXMan agingComplianceWhitepaper and Microsoft Dynamics AX 2012: What's New Compliance and Internal Controls, https://mbs.microsoft.com/members/elearning/ dynamicstrainingcert.aspx?courseid=249223&th eme=partnersource SAP Claim: SAPs Fast Start Program reduces the risk, time, and cost of implementing the solution. Microsoft Response: Microsoft Dynamics RapidStart and Sure Step offer a scalable, repeatable methodology for implementing Microsoft Dynamics, helping partners reduce the risk, time and cost of implementation.

2. Does All-in-One and SAPs enterprise product, ERP 6.0, share the same application code set? If so, what truly differentiates the two solutions? 3. During the demo, customers should verify what is being demonstrated. Is it out of the box SAP All-in-One, or are additional SAP components like SAP Business Warehouse, SAP Enterprise Portal or SAP CRM playing a role in the demo? Also, ask what added functionality is provided by the partner via customization. 4. How many full-time equivalents (FTEs) do these products require to maintain and support on-going changes? 5. What level of integration with Microsoft Office does All-in-One support out-of-thebox?

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Customer Success Stories

Kapstone Paper and Packaging Corp. http://www.microsoft.com/casestudies/Microsoft -Dynamics-AX/KapStone-Paper-and-PackagingCorporation/Acquisition-Company-SupportsGrowing-Operation-with-ERP-and-SOA-SavesMillions/4000009108 Integrated Silicon Solution, Inc., (ISSI) http://www.microsoft.com/casestudies/Microsoft -Dynamics-AX/Integrated-Silicon-Solution-Inc.ISSI/Fabless-Manufacturer-Gains-Visibility-intoGlobal-Operations-with-Centralized-ERPSolution/4000007433 Ridley http://www.microsoft.com/casestudies/Microsoft -Dynamics-AX/Ridley/The-Right-Supply-ChainDecision-Saves-Animal-Feed-and-NutritionProvider-1-Million/4000004023

Additional Resources
SAP Compete on Partner Source https://mbs.microsoft.com/partnersource/sales/ma rketing/competitiveinformation/SAPCompete.htm Microsoft Dynamics AX 2012 A New Generation in ERP (White Paper) http://download.microsoft.com/download/8/7/6 /876FA255-57F8-447C-98B9FA5D5BC2C3B1/Microsoft_Dynamics_AX_2012NewGenerationinERP.pdf Whats New in Microsoft Dynamics AX 2012 http://download.microsoft.com/download/A/9/8 /A98A616C-82A7-493B-9DF05F2DE5223955/Microsoft%20Dynamics%20AX2012%20-Preview-small.pdf Statement of Direction for Microsoft Dynamics https://mbs.microsoft.com/partnersource/marketin g/statementofdirection/StatementofDirection.htm Microsoft Dynamics RapidStart Services https://mbs.microsoft.com/partnersource/deploy ment/resources/productreleases/MSDY_Rapid_St art.htm Analyst Reports on Microsoft.com http://www.microsoft.com/presspass/itanalyst/d efault.mspx

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