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DYNAMICS VAR REALIGNMENT ON TAP?

Dynamics LogoStart with the fact that five top Dynamics VARs formed a company for selling a Dynamics AX product last month and the Dynamics Partner of the Year, Fullscope, was recently acquired. It's possibly the start of a big shift in the Dynamics channel, and considering Microsoft wants to reward VARs that generate more revenue, that shouldn't be surprising.
And there's a firm called Dynamics Ventures, formed in January 2009, that is seeking to roll up Dynamics GP and possibly Dynamics NAV resellers. CEO Jeff Lynn expects to announce the acquisition of two Microsoft infrastructure VARs soon with talks going on with ERP and CRM resellers. Lynn believes the new model will have a much stronger emphasis on services than on software sales. Lynn was COO for Tectura from 2006 through 2008. As to the Microsoft desire for fewer, larger partners, Lynn notes, “That has been my mantra all along.” Then there was the acquisition of FullScope, Microsoft's Worldwide Partner of the Year, by Edgewater Technology, a publicly held company based in Wakefield, Mass., on December 31. Edgewater is paying $12.5 million in cash and has an earn-out agreement, which could yield another $2 million to $2.5 million for the sellers. Fullscope had annual revenue of $21.7 million, excluding the Process Development Business Unit, which is the subject of the earn-out provisions. Edgewater itself had a loss of $2 million for nine months ended September 30, down from $19.1 million in red ink for 2008 which stemmed from a $24.7 million write down of impaired goodwill a year earlier. Revenue for the three quarters was $38.7 million, a decline from $57.4 million a year earlier. Founded in 1992, Edgewater sells Oracle, SAP and Microsoft products in the Northeast.
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