Scala to broaden its ERP offering with Microsoft Business Solutions CRM

Both companies will work together on developing Microsoft CRM for commercial release by Scala as iScala CRM, a new product that Scala will offer to its global customers, as part of the iScala ERP product, as an integrated solution for the enterprise. With iScala CRM, Scala will leverage the proven capabilities of its ERP offering with functionality such as multi-currency capability, international tax calculations (VAT) and business intelligence that will meet the needs of Scala's customers doing business in more than 140 countries.

With iScala CRM being offered as part of the iScala ERP product, which can also integrate with other ERP systems, this will extend the easy integration capabilities and web services architecture of the iScala platform. The release date for iScala CRM will be announced later this year.

iScala CRM will allow Scala to address growing customer demand for more business functionality. Scala expects its new offering to appeal to many of its existing customers; initially, it will be offered in key European markets including Russia, as well as China - markets where Scala traditionally is strong and has a leading market presence. By 2005, Scala expects iScala CRM to contribute an additional 20% to its annual revenue.

Scala also sees opportunities for broadening its reach in other markets and appealing to companies who desire an integrated enterprise offering but who have been put off by the high cost of competing offerings. In addition, this new offering will enable Scala to offer iScala CRM in some vertical industries where the iScala product is especially strong, such as construction equipment, pharmaceuticals and food and beverage.

"This initiative was driven by strong demand from our customers for one integrated solution," said Andreas Kemi, interim Chief Executive Officer, Scala Business Solutions. "We see iScala CRM as a great fit for European medium-size companies as well as for the subsidiaries of larger enterprises who want a cost-effective and integrated enterprise solution, and we plan to start delivery in the fourth quarter."

Kemi continued, "We develop our software to run only on the Microsoft platform. It was a natural choice to continue to choose Microsoft as our partner to develop a CRM offering." Kemi added that Microsoft's stability, global presence and collaborative approach to joint development work were major factors in Scala's choice of Microsoft rather than any other CRM vendor.

"This further cements our ten-year strong relationship with Microsoft, and we are delighted to be working more closely with Microsoft in strengthening our market position."

As part of preparing for market, Scala has established a go-to-market team from across the company, including product development and management, sales and marketing and support resources. Led by Natasha Stolnaya, Product Director iScala CRM, the team will be working closely with Microsoft's CRM team and key Scala customers in the lead-up to the product's commercial release.

"This relationship with Scala allows us to really broaden our market reach of Microsoft CRM across its strong customer base," said David Thacher, General Manager for Microsoft CRM with Microsoft Business Solutions. "Scala's considerable business solutions expertise is an excellent fit with the heritage we have at Microsoft Business Solutions, and we're excited about their ability to extend Microsoft CRM and deliver it to their ERP customers worldwide."

The enhanced relationship with Microsoft will enable Scala to fulfil its goal of providing an integrated ERP and CRM offering to its customers wherever they do business. As one of the few single-solution mid-market ERP vendors with proven worldwide experience and reach, Scala currently delivers its software and services in more than 30 languages to more than 140 countries.

With iScala CRM, Scala plans to focus its R&D resources on delivering more business functionality to its customers. "We believe that it is the right approach when more and more ERP functionality is being commoditised and integration and connectivity become much easier," Kemi said. "This offering presents us with huge opportunities to open up our markets to the benefit of both Microsoft and ourselves."