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        Anatomy of the Deal: Nexvue and Microsoft OEM Agreement 
        Part of our ongoing series offering an inside look at prominent deals in the Microsoft partner community. 
        
        
			- By Lee Pender
- April 14, 2006
Microsoft Corp.- Nexvue Analytics OEM Deal: March 2006
The Partner 
  NexVue Analytics Corp., a 21-person Microsoft Gold Certified Partner based in 
  Stamford, Conn. NexVue develops BIO (Business Information Optimization), an 
  analytics application for small and midsize companies that provides easy visibility 
  into Microsoft Office and Dynamics SL data and other critical company and industry 
  data.
The Deal
  In March, NexVue and Microsoft announced an OEM deal creating a new Microsoft 
  product, BIO for Microsoft Dynamics SL. Formerly known as Microsoft Business 
  Solutions-Solomon, Dynamics SL is part of Microsoft’s recently renamed 
  Dynamics line of enterprise resource planning applications. The entry-level 
  version of BIO for Microsoft Dynamics SL, scheduled for release in June, will 
  cost $3,600 for a two-user license.
The Terms
  The parties did not release terms of the deal.
The Market
  This deal touches two markets. First, there’s the ERP market for Dynamics 
  dominated on the high end by SAP AG and Oracle Corp., into which Microsoft hopes 
  to make inroads with smaller companies. In addition, there’s the business 
  intelligence market for BIO, a highly competitive sector that includes stars 
  such as Ottawa-based Cognos Inc. and Business Objects SA, based in Levallois-Perret, 
  France and San Jose, Calif. The BI industry maintained momentum through the 
  technology recession of the early part of this decade, and analyst firm Gartner 
  Inc. predicts that the market will grow at a yearly rate of 7.3 percent between 
  2004 and 2009, at which point it will reach $3 billion. BIO and products like 
  it cut through SQL code, giving nontechnical users easy access to real-time 
  reports on key metrics within a company or industry without requiring IT people 
  to intervene in the report-creation process. 
Microsoft made further inroads into BI in April, when the company announced 
  that it had agreed to buy ProClarity Corp., a Boise, Idaho-based BI vendor. 
How Partners and Users Will Benefit
  The addition of low-level, inexpensive business analytics to Dynamics SL will 
  give Microsoft partners the opportunity to provide midsize companies with the 
  kind of tool usually reserved for larger enterprises, according to NexVue founder 
  and President Dan Schwartz. Midsize companies will have BI functionality without 
  having to make massive investments. 
“This is a proof point that we can take a very complex and expensive 
  process bring it down so that for middle-market companies it becomes a less-risky 
  endeavor,” he says.
How NexVue Will Benefit
  Aside from financial considerations, Schwartz says, this deal provides evidence 
  for the cost-effectiveness and usefulness of his company’s application. 
  He says NexVue hopes to use the deal as a springboard to be the first BI vendor 
  to successfully bring analytics applications into the mid-market. 
How Microsoft Will Benefit
  Microsoft saw a need for business analytics in Dynamics SL, Schwartz says. Furthermore, 
  technology focused on midsize companies fits well with Microsoft’s target 
  of bringing ERP to companies outside the Global 2000, says Eric de Jager, director 
  of product management for Solomon in theMicrosoft Business Solutions division. 
“We have our market staked out, and it’s going to be hard for (competitors) 
  to come down into it,” de Jager says.
        
        
        
        
        
        
        
        
        
        
        
        
            
        
        
                
                    About the Author
                    
                
                    
                    Lee Pender is Redmond Channel Partner magazine's senior editor. You can reach him at [email protected].