MICROSOFT CONFERENCE DEBUTS .
Microsoft held its first-ever Worldwide Partner conference in New Orleans last week, combining its traditional VARs (called Classic) with the accounting software resellers of Microsoft Business Solutions. (Guess they are New Coke?) The first-day general session seemed devoted to corporate ego gratification—can't leave anybody important out. Most talks would have been good by themselves, but strung together they were overkill. And it wasn't about this market. CEO Steve Ballmer spent his time defending what Microsoft is doing about security and attacking Linux. "We're not scared of Linux" was the statement that seemed to ring out over and over, if not in those words. Salesmeister Orlando Ayala related to two on-stage reselling stars from Interdyn (a major Great Plains reseller) that "You'll be able to compete with IBM, Oracle, and SAP" with the product lineup. Hey, Orlando, ever hear of Best Software? (never mentioned.) Allison Watson, vice president, partner sales and marketing group, talked about the new reseller program, in which partners will earn points on areas of performance. The emphasis supposedly won't be on volume sales alone. The program will not be fully rolled out until next year.

MICROSOFT TARGETS QUICKBOOKS .
Microsoft has a low-end accounting package in the R&D oven, designed to compete with QuickBooks and Peachtree. Code-named (I won't say it; the name could be an anti-leak device), the product will be in the $200 range. The development effort is reportedly headed by the same person who wrote the recently released Business Contact Manager. The company is studying CPA needs for this one. Note to Microsoft: the things that users like the most about QuickBooks are the things CPAs hate the most. No timetable was mentioned in the information floating around the reseller conference. But you'd have to calculate it's early in the code-writing phase. It's clear Microsoft needs a feeder system product, or, as Best Software likes to say, Best and Intuit will continue to choke off the Microsoft air supply. Believe me, this was not discussed openly in New Orleans, but it seems to be fairly widely known in the company, so the leaks ought to escalate soon.

ALL TALK, ALL THE TIME .
There were way too many keynotes and not enough breakouts. MBS products were detailed in a 4.5-hour briefing, chaired by vp Tami Reller, recently named by Release 2.0 as one of the rising Microsoft stars. The seven-months pregnant Reller didn't spend all the time conducting a Tami-a-thon. Others made the presentations. But as in all the general sessions, there was no roadmap about which products would be discussed when. A lot of MBS VARs said they shunned the general sessions for the networking that was the most valuable part of the program.

AVOIDING THE "A" WORD .
This was a phrase I stole from a reporter from a channel publication, in describing the opening keynotes by the top execs. As mentioned, the focus was on competing with Oracle and IBM and on the Small Business Server launch. No MBS products were launched. There wasn't a single press release about accounting products, fact sheet about MBS, or corporate backgrounder. The final evaluation form asked participants to identify themselves by categories such as Business Vertical, Manufacturing, or Financial Services, but not by Classic or MBS VARs, so any differing attitudes can't be measured. Microsoft did emphasize its commitment to buzz words by continuing to use the word ecosystem. Hot term of the conference was "stack", as in the packages of products—the Microsoft stack, the Linux stack. I prefer a short stack, please. However, in individual conversations, the MBS folks, including Reller, promised the company will be developing programs for CPAs.

SBS REVIVED .
Get ready to hear a lot more about Small Business Server now entering its SBS 2003 rendition, introduced with great hoopla at the conference, or as it appeared sometimes, the SBS 2003 Launch party. It seemed to be about the only thing Ayala talked about with enthusiasm. For those who forget, SBS, a combination of Microsoft server software designed for small business, was introduced in 1998 with Ballmer in attendance. It tanked in the accounting VAR market, but has done at least okay with networking and hardware VARs. Problems had included pricing, the inability to expand when companies bump up against the user limit (now 75), and the inability to move up without having to pay full fare for SQL Server and other tools. Also, to run SBS and accounting software on the same server required a pretty big box. MBS says these concerns have largely been fixed. One reseller says that the apparent addition of licenses for Microsoft CRM is a plus. Since the relatively inexpensive CRM package requires thousands of dollars of the same server software, it sounds like a good package. This also sounds a lot like a Brain Surgery in a Box.

FOLLOW THE FUZZY BRICK ROAD ?
The road to the MBS next-generation product, which ties together Solomon, Great Plains, Navision, and Axapta, is littered with uncertainty. "They've been saying for three years, it's three years away," said one attendee. The official earliest-possible launch date now is 2006, but only after the next operating system, code-named Longhorn, is delivered. Resellers figure it won't be until 2008 that they can sell it. Here's the reseller syllogism: Microsoft never delivers an operating system on time. When nexgen does appear, it will be a 1.0 product, which nobody buys. Then, it will take another couple of years to deliver key modules. Microsoft promises to support the current ERP line until 2013. I personally told Doug Burgum I will be at that year's show to hold the company accountable. One thing most MBS resellers agree on? Axapta is a wonderful product. It's the one product nobody has any bad words for.

THE DOUG WATCH .
Burgum, trimmed and toned after a sabbatical, also seemed more serious to most. On the hair watch, after wearing long locks in March, he had the shortest trim he's had in years, plus the early stages of a mustache and goatee, looking very Mephistophelean. In the right light, his jaw line resembled a Hapsburg chin. (For this reference, check your local "Guide to European Dynasties.") Burgum got the short end of the corporate stick in presentations. After the other execs ran long in the opening keynotes, Burgum was up. But for non-MBS VARs, who had sat for more than three hours and were waiting for lunch, Burgum's talk about human potential and the Wright brothers wasn't the item and they streamed out. Doug's speeches are an acquired taste. Fans liked this one. His normal Q&A, almost dumped by the convention planners, was placed at the end of a four-hour product marathon. As usual, it was one of thebest events. Note to Microsoft: Keep it at all costs next year. Doug pinned most of the blame for the millions in MBS losses over the last two years on R&D spending. The theme of the conference was "Building Momentum." Since MBS lost $254 million in the last fiscal year, I'd say, "Finding Momentum" might be more apropos.

TAPS FOR SBM ?
MBS didn't say it is killing Small Business Manager, but Burgum did everything but put the body on display. In response to a question, Burgum said that "It's still being sold. There's a shift towards the Standard Edition [Great Plains]" when it comes to going down market. There were no sessions or company mentions of the product. The number of SBM installations is slightly higher than the population of the California condor. At least the condor has people rooting for it. SBM was a good idea when Great Plains proposed it—a replacement for DOS packages like RealWorld, Great Plains Accounting, and Solomon III. Then, the "We're Microsoft" troops got in charge and decided to go down market, while running it with a marketing staff that, while nice enough, didn't seem to know the accounting market. Sometimes, I think the Microsoft marketing machine has a "Make It Fit" button. If a program doesn't work, just keep hitting the button.

THINGS THAT WENT RIGHT .
The conference was a big success in terms of getting thousands of people to the right places at the right time. Hotel reservations and bus schedules worked very well. The vendor fair was a big hit with most resellers as was Structured Networking (make an appointment to meet with someone about a particular subject and the service finds a date). It reminds me of the rotating discussions tables that Creative Solutions, the tax and write-up software supplier, has had for its users for years with equal success. A bit ironic to see Epicor as an exhibitor and sponsor and people running around with Best Software badges. Hey, those companies are partners too. Also on hand were some SAP representatives for BusinessOne. The press was kept well supplied with food, computers, and telephones, and a more-than-adequate opportunity to talk to top execs, given the demands on their time.

CONFERENCE BODY COUNT .
Microsoft single handedly worked to help the New Orleans music and drinking scene (not that the latter needs much help). At least two stands dispensed free Starbucks. One gave away 1,100 cups of tea and coffee on Friday. Convention meals featured buffet dining in an area with 502 tables seating 10 each. On Friday, the company took over Decatur Street between Bienville and Iberville for a block party, sort of like renting a small town. The bars on the street and in the taverns were cash free. There were probably eight to ten bands playing at various venues and at 10:30 p.m., Smashmouth played in the House of Blues, while Dr. John played in a tent outside. Hundreds, if not thousands, each got a cooking apron and a hardbound cookbook. On Saturday night, Microsoft rented the New Orleans Aquarium (cash bar for the hard stuff for some reason, but free wine and beer and food.) There were two bands inside, one outside, and the highlight of the evening was an appearance by Duran Duran, with one of those sound and lights systems that looks like it was designed for a space shuttle launch. Somebody spent a little money on all this.

NEW ORLEANS MUSINGS .
The Chicago Bears were in town with their fans for a game with the Saints. What's the difference between the Bears and Microsoft? Microsoft scores more often from the red zone. ... Odd behavior was the order of the day. People in the elevators said "Hi"; the wake-up call operators asked about your day; cars in the French Quarter stopped at yellow lights. But my faith in humanity was restored when a car pulled a U-turn in the middle of Decatur Street. ... The W Hotel on Poydras Street, official conference home for press and analysts, is nice, but a bit quirky. Instead of "Do Not Disturb," the sign to hang on the door says, "Leave Me Alone." The service for wake-up calls is "Whatever, whenever" and the signs for the gym and pool are labeled "Sweat" and "Swim." With all the Microsoft money in town, the Tennessee Williams classic is being reissued as "A Streetcar Named Bill." ... We must thank the outbreak of SARs for this conference. It just wouldn't have been the same in Toronto, the original site.

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Consulting Insights Microsoft Conference Bonus Issue (Regular issue ships October 18, 2003)
By Bob Scott, Editor
bob.scott@amgpubs.com

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