Sunday Lunch

I had lunch with a few customers who are old friends, a partner, a customer who used to be a partner. I'm disguising the names so nobody hits me over the head later. A comment in the general session about shrinking software margins struck a nerve with partners and former partners alike. Improved installation of GP and easier customization via Extender also has the potential to cut into partner margins. Microsoft has a delicate balancing act going on here. Lots of people have built their businesses on MS and partners are still smarting from the failed MS-Siebel collaboration from several years ago. MS CRM 3.0 may finally be the product to get partners past this open wound but MS needs to be careful not to open any new wounds.