Microsoft Dynamics GP is one of four accounting software products in Microsofts Dynamics family of business solutions. Originally developed by Great Plains Software (hence the abbreviation GP), the company was acquired by Microsoft in late 2000. Dynamics GP can trace its roots back to the early 1990s as one of the first windows-based, mid-market accounting software solutions. Great Plains was originally developed to operate in a file sharing environment (using the CTREE or BTRIEVE databases) and later evolved to run as a client/server financial system when it was upgraded to use the SQL Server database and marketed as Dynamics C/S+.Great Plains (today's GP) was originally developed in a proprietary, somewhat object-oriented development language called Dexterity. Although successive versions have incorporated more and more of Microsofts standard development environment, the core of the application remains in Dexterity and any major modifications will require this non-industry standard development tool.Through acquisitions, Microsoft now owns four middle market (competing) accounting software solutions and its business strategy for its Dynamics products has changed several times. Early on, the go to market product plan was to develop a common code base (referred to as Project Green) with each of the four accounting software product lines maintaining its user interface and vertical specialties. The scope and cost of that effort later proved daunting, and Microsoft changed course and restated its commitment to each of the product lines with each missed milestone. Most analysts agree that it will not be cost effective or practical to continue development in all four products and the discussion has turned to which products will survive.GP continues to compete with NAV for the lower-tier of the accounting software market. Factors in favor of GPs survival include its very broad installed base in North America, tight integration with the Microsoft technology stack and a software development team that is highly integrated with Microsofts corporate teams.Dynamics GP offers vertical market solutions in the light distribution, light manufacturing and small government (county and municipalities).STRENGTHSStrengths for the Microsoft Dynamics GP accounting software solution solution include the following: Very strong network of Independent Software Vendors (ISVs) that produce add-on modules. There are hundreds of industry specific and functional specific add-ons that fill in the functionality gaps of the standard solution. Decent technology for integrating ISV solutions. Because Great Plains was originally designed with the concept of add-on modules, the integration is fairly seamless from an end-user perspective. Tight Integration with Microsoft Office Applications. Strong integration with Microsoft Server Technologies (MOSS/Sharepoint). Competitive price point. Strong North American install base. Strong customer service and support. Very experienced channel of value added resellers (VARs).WEAKNESSESWeaknesses for the Dynamics GP software include the following: Ongoing reliance on proprietary development tool (Dexterity). The absence of a hosted or software as a service (SaaS) accounting solution. Separate security model from Windows platform (Active Directory). Weak workflow and business process approvals. Lack of globally localized versions. Weak Multi-company/consolidation features. Weak Multi-currency capabilities. Very bloated software and difficult to use by many SMB (small and midsize businesses) companies.KEY COMPETITORSDynamics GP's primary competitors include Sage MAS 90 and MAS 200.Dynamics GP occasionally competes with SAP or Oracle at the high-end of the market or Accpac and QuickBooks at the low end of the market.ADDITIONAL INFORMATIONMicrosoft may be one of the greatest channel distribution software companies in the world. A key factor in Microsoft GPs favor is the network of Independent Software Vendors (ISVs) that produce add on modules. The ISV community offers a broad array of industry-specific solutions as well as horizontal, ease-of-use applications that greatly improve the core financial application. There is a fairly strong history of incorporating ISV solutions into the core product over time and several of GPs modules were initial developed by ISVs.There is concern among the Microsoft business partner channel and the GP install base about the longevity of Dynamics GP. While GP was once a favorite among the four Microsoft enterprise resource planning software applications, its growth has slowed relative to AX and NAV and the product is showing signs of receiving less R&D when compared to Dynamics AX and NAV (for example, Dynamics GP is not getting multiple language sets and other internationalization capabilities). While it is clear that Microsoft has not made anywhere near the amount of revenues the company suggested when it acquired Great Plains and Navision, Microsoft's plans for continuing and evolving four overlapping middle market ERP software systems are as unclear today as they were in 2001 after the software giant completed is acquisitions of the formerly competitive products.