Is your Partner staying Direct with Microsoft, you should probably be asking that question of your Partner

If you’re underwriting a Dynamics partner acquisition right now, ask them one question: are they staying direct with Microsoft next year?

What else is hiding in that diligence blind spot?

Microsoft’s FY27 partner requirements are getting harder to hit every year. Revenue thresholds are climbing, support obligations are expanding, security investment is no longer optional, and operational readiness expectations keep moving the bar.

A growing number of Business Central partners are quietly reassessing whether staying direct still makes sense for their business.

Here is why I think that matters far beyond the partner community itself. If you’re a PE or VC operating partner evaluating a Dynamics-focused acquisition target, that direct-versus-indirect status should not be a secondary consideration. It affects margin structure, Microsoft roadmap access, customer relationships, and how much control the firm actually has over its own future.

A target firm that gets pushed to indirect mid-hold can see its economics shift in ways that were never modeled in the deal.

This is why I keep telling clients that technical and financial diligence alone will not catch this. You also need people on the ground who understand what direct status actually requires operationally, and what it takes to build or acquire the talent to hold onto it.

Scaling security investment, customer success functions, and delivery capacity is a talent problem before it is anything else, and it belongs in the diligence conversation just as much as the cap table does.

If you are looking at a Dynamics or NetSuite partner acquisition and want a second set of eyes on the talent side of that equation, I would love to talk. This is exactly the kind of blind spot we help clients see before it becomes a post-close surprise!

Credit to MSDynamicsWorld’s BC Insiders series for putting this on the radar, hosted by PartnerTalks’ Rick McCutcheon with MSDW editor Jason Gumpert, TD SYNNEX’s Tracy Beyer, and a panel of partners who have lived through this decision firsthand.

Worth a registration if you work anywhere near the Dynamics partner ecosystem: https://lnkd.in/g4ihEGUA

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We track every new Microsoft Dynamics 365 and NetSuite job posting across North America, every single day, and October gave us the clearest read yet on where this market is actually heading. The short version is that ERP hiring cooled about 11% from September. That headline is true, and it is also misleading. Almost the entire drop sits in the Dynamics implementation tracks, while NetSuite held flat and demand for senior, in-house talent stayed strong. Whether this market feels soft or busy right now depends entirely on which role you are trying to fill. I pulled the full track by track breakdown into this month’s DynamicsFocus Recruiting Report, and it is attached below. If you have a role that has been sitting open since the summer, I would genuinely love to hear what you have tried so far and am more than happy to schedule a 30 minute Teams call to share potential strategies to rectify the situation, no strings attached. #MicrosoftDynamics #D365 #Dynamics365 #NetSuite #ERP #NetSuiteRecruiting #MicrosoftDynamicsRecruiting #TalentMarket #Hiring #AIAgents

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