If you’re following the developments in the SMB (small and midsize business) space, you’ve probably heard about the latest Microsoft move. MS Dynamics Entrepreneur Solution is a new, fully Office-integrated suite aimed at the really small fry. Sage and Intuit are the primary targets for this particular release, and so far the release is limited to the Netherlands, but it’s another little step towards the SAP vs. Microsoft showdown we’ve talked about in the past.

SAP is betting the hard on the SMB market, but Microsoft certainly isn’t about to stand down. Indeed, Microsoft Business Solutions head Kirill Tatarinov recently told Reuters that he’s eager to meet SAP’s new Business ByDesign in the field.

“There are many organizations that may not use Dynamics just yet, but many are already using the infrastructure that Dynamics is built on,” Tatarinov said.

What makes this battle for the SMB space so interesting is the different strengths of the key players. Microsoft has a strong channel and beach heads everywhere, while SAP is (generally) technically solid. Oracle’s fierceness in and of itself goes a long way, and the smaller niche players have the advantage of specialization in their respective fields — which, in combination with their inherent nimbleness, may help keep the big bullies from stealing their lunch money. Here’s to an interesting 2008!

Matt Danielsson
Editor