Microsoft Designates Three Solution Providers To Be Dynamics ERP Master VARs

Under the program, small solution providers who resell Microsoft Dynamics ERP applications can choose to work with master VARs rather than directly with Microsoft. But the vendor is battling rumors that the program is mandatory for small partners, according to a blog post by Jeff Edwards, director of channel strategy, Microsoft Business Solutions.

"For many of our partners, we believe the master VAR program will provide a welcome and accessible path to growth," Edwards said in a blog posted late Thursday. "SBS, Socius and Tribridge are uniquely positioned to help those partners grow."

Microsoft started the Dynamics Master VAR program to give small partners the option of collaborating with master VARs, pooling resources with the larger resellers and their networks of small VARs or "sales affiliates," in Microsoft parlance. By consolidating difficult-to-scale activities and leveraging shared resources and expertise, smaller VARs can focus their resources on what they do best, whether its sales, technical services or managing customer relationships, Microsoft said at the September launch.

Edwards, in his blog, said many partners expressed interest in the program after it was unveiled. But he said there also have been some "common misconceptions" about the program, including that selection of master VARs favored large partners at the expense of smaller partners.

"Although master VARs are required to meet minimum revenue and operating capital requirements, the intention was not to preclude smaller partners from participating, but instead to ensure that master VARs have the financial resources to invest in the success of their sales affiliates," Edwards said. "The master VAR program is designed to help smaller partners achieve their business goals, and we conducted an evaluation process to find master VARs that have the resources required to achieve that objective."

Edwards also said that contrary to rumors, "aligning with a master VAR is in no way mandatory. No partners will be forced to participate in the master VAR program.

"The Master VAR program was introduced to provide greater choice for our Microsoft Dynamics ERP partners. We will continue to do everything we can to support partners focused on growth, whether they want to grow organically or explore an alternative option such as affiliation with a Master VAR," he said.

Edwards, nevertheless, said Microsoft "strongly encourage[s]" resellers of Microsoft Dynamics GP, NAV and SL application suites who may be interested in learning more about the master VAR program to reach out directly to the master VARs. Microsoft, which is providing master VAR contact information on its PartnerSource Website, also has briefed third-party consultants on the program to offer advice to small partners.

The new master VARs will provide presentations about themselves in a Microsoft-hosted Webinar scheduled for 1:00 ET/10:00 PT today.

SBS Group, Socius and Tribridge were chosen to be master VARs according to criteria Microsoft outlined in September. Those included having at least $1 million in operating capital, at least $500,000 in gross license revenue in the previous 12 months, a 90 percent or greater revenue recapture under Microsoft's Business Ready Enhancement Plan (BREP), and other requirements.

"SBS, Socius and Tribridge have all been involved in various alliances and partnership programs long before the Master VAR program was even conceived," Edwards wrote. "They have collaboration in their DNA. This gives us confidence that they have what it takes to create win-win relationships within the Microsoft Dynamics ERP channel."