If your managed service provider (MSP) business has already built a practice reselling Microsoft 365 licenses, it stands to reason you’re equipped to branch out within the Microsoft ecosystem. But where to move next? Easy—enterprise resource planning (ERP) and customer relationship management (CRM) software. More specifically, Dynamics 365 Business Central.
Everything you should know about Business Central
Adding Microsoft Dynamics 365 Business Central partner to your MSP’s resume
Why is it in an MSP’s best interest to become a Microsoft Dynamics 365 Business Central partner? Let us count the ways! First off, the ERP market is booming, occupying an estimated 50% of enterprise software revenue globally, with a market size valued in excess of $70 billion. Secondly, Microsoft is a leader in the space with its range of Dynamics 365 products, so it’s a no brainer to stick with Microsoft when it comes to building an offering around ERP and CRM tools.
Thirdly, the market for digital transformation is also rapidly growing, with a compounded annual growth rate (CAGR) of more than 20% forecasted to 2032, representing a market value greater than $12 trillion. Digital transformation is all about improving efficiency and modernizing business processes; therefore, implementing ERP software is an obvious step for businesses of all sizes looking to achieve this. As your clients’ trusted IT advisor, your MSP is in a good position to recommend such an implementation to clients who seem ready (or express interest) to take this step.
Fourth, providers who add Business Central to their offerings are proven to have a substantial rate of success, not only generating enviable margins but also increasing customer stickiness and satisfaction. According to Microsoft, partners report a customer retention rate of 95% for services related to Dynamics 365 and some of the highest average licensing margins across the Microsoft Cloud. TLDR: it’s a major revenue opportunity for your business.
You might still be wondering: why Business Central specifically? Why not another solution from the Dynamics 365 lineup? It’s important to understand that Business Central was designed with SMBs in mind. Because many MSP clients fall into the SMB category, and many of them might not be using robust ERP tools, Business Central is a logical starting point for clients. Additionally, thanks to its range of functionality out of the box, Business Central is likewise a good place for your MSP business to launch your Dynamics 365 practice as well.
The list of incentives for your MSP to get started as a Microsoft Dynamics 365 Business Central partner could go on and on, but you probably get the point by now. Next, let’s look at approaches to making your offering a success.
How to build your Business Central offering
Business Central can do a lot of different things! From overseeing the supply chain, keeping projects on schedule and balancing budgets to executing marketing campaigns, tracking sales interactions and managing service contracts, SMBs can use Business Central for a wide range of activities. That’s all well and good, but it can create challenges for MSPs trying to package a standardized offer. Especially if you’re new to the product, you don’t want to bite off more than you can chew. For this reason, it helps to start off simply, and add complexity as your expertise grows.
Start with licenses
Selling Business Central licenses—whether to existing clients or new ones—isn’t a huge departure from selling Microsoft 365 licenses. One key thing to remember, however, is to focus on business outcomes instead of technical capabilities alone. Remember, many SMBs are looking to invest in their digital transformation. By listening to clients’ current pain points and vision for growth, you can draw connections to how Business Central can solve some of the operational problems they experience and move them closer to accomplishing their goals.
Provide support
Once you become more familiar with the applications included with Business Central, you can help clients make the most of them. Being able to offer relevant training and technical guidance for the licenses you sell adds another layer of service onto your MSP’s offering, enabling you to generate more revenue as a Microsoft Dynamics 365 Business Central partner.
Broaden your scope
Eventually your MSP will be perfectly comfortable speaking to the value Business Central can bring to SMBs and deploying its applications out of the box. At this point, you’ll be ready to move on to more customized implementations. Maybe you’ll come across clients within a certain vertical who need specific dashboards or workflows tailored to their specific needs. Or perhaps some of your customers will be interested in Power BI integrations to connect data sources on a deeper level. Part of the magic of Business Central is its flexibility. As long as you make sure you don’t overpromise on your MSP’s capacity for service delivery and support, you can create specialized packages that, when standardized, can drive significant revenue for your practice.
Additional recommendations for a strong Business Central practice
A considerable upside to working with any Microsoft solution is access to a vast network of other resellers and experts. Being a Microsoft Dynamics 365 Business Central partner is no different. Rather than working in constant competition, members of the Business Central community—whether service providers, systems integrators or independent software vendors (ISVs)—often join forces to benefit from one another’s skillsets.
Welcome to the Dynamics 365 partner-to-partner network
We match MSPs who want to resell Dynamics 365 with our Dynamics technical experts. Both sides benefit from each other’s skills to create new business opportunities
For example, an MSP just breaking into Business Central might work with an experienced ISV to deliver a custom integration for clients. Such a relationship could then expand to deliver the same setup to other SMBs, thereby allowing both the MSP and ISV to reap the rewards.
Similarly, the right indirect provider of Microsoft cloud solutions can make it a lot easier for MSPs to resell Business Central licenses and build up their practice in the first place. They can also support your MSP with product knowledge, sales enablement resources and connections to those same ISVs who can help with custom implementations.
Ready to start your Business Central journey? Sherweb at your service
The reasons why Dynamics 365 Business Central is a smart move for any MSP are abundantly clear. The question is, what’s holding your MSP back? If it’s the right partner to help you get started, Sherweb can fill that gap. As an award-winning Microsoft indirect CSP partner, we have experts, resources and value-added services at the ready to drive your practice forward. Reach out to us to make it happen!
