Microsoft Buys Great Plains.

21-Dec-00 - Microsoft enters accounting and management software market with purchase of a major Windows player.

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The inevitable has happened. Microsoft has broken its commitment not to compete with Windows business applications development partners. They have purchased Great Plains software for $1.1 Billion.

This move totally reverses Microsoft's commitment not to compete with it's business applications "partners".

Great Plains is a developer of accounting, human resources and customer relations management software for high end small and medium business. They have recently been aiming to move up into enterprise market.

Great Plains itself recently absorbed Solomon Software, so Microsoft is acquiring the customer base of both accounting software companies.

Originally developed for DOS, Great Plains' software was moved to Windows fairly early, and with Great Plains aspirations to move up the economic scale, it adopted the Client Server model. The company has been a very enthusiastic Microsoft development partner.

Analysis

We predicted this move a couple of years ago, right down to naming Great Plains as the company to be acquired. We feel the subject is so important and far reaching we have devoted an entire editorial to the analysis.

Microsoft VP Charles Stevens says the acquisition will allow Microsoft to provide "even deeper support" for Great Plains channel partners (dealers), and strengthen "the very deep and valuable partnerships we have in the enterprise space with companies like JD Edwards".

Note the emphasis on "deep". If I were a Great Plains channel partner (or JD Edwards), I'd be getting pretty nervous right now. We expect this move by Microsoft will result in a whole lot of dead and dying companies in spaces that had considered themselves immune.

Links

Microsoft Press Release - The "Official Word".
InfoWorld News Item - Microsoft to buy Great Plains for $1.1 Billion.
ZDNet Sm@rt Partner - Microsoft Dives Into Server Apps Biz
ZDNet Sm@rt Partner - Microsoft and Great Plains - Watch Carefully
Great Plains Software - Home Page.
A.Grygus Predicts Great Plains buy - ZDNet "Talkback" posting.
A.Grygus Predicts Great Plains buy - ZDNet "Talkback" posting.

©:Andrew Grygus - Automation Access - www.aaxnet.com - aax@aaxnet.com
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