Microsoft plans public-sector ERP software

Microsoft plans to roll out public-sector functionality for its Dynamics AX enterprise resource planning system.

The company will co-develop the government-specific accounting features with Tyler Technologies, a solutions provider based in Dallas. Tyler specialized in finance and accounting, among other public-sector solutions. The new capabilities to be developed include fund accounting, encumbrance accounting, and grant management.

Glenn Bray, Microsoft’s director of business management and vertical strategy, said the new features will ship in 2009.

As part of its arrangement with Microsoft, Tyler will become an authorized Microsoft reseller for the public-sector Dynamics solutions. The reseller pact isn’t exclusive because other resellers will be able to offer the public-sector functionality, Bray said.

John Marr, Tyler’s president and chief executive officer, said his company has an installed base of financial applications among cities, counties, and school systems. The Microsoft arrangement, he said, will let the company offer Dynamics and its government extensions to other markets. He said Tyler is interested in moving into the state and federal government sectors.

In light of the public-sector features, Microsoft will pursue Financial Systems Integration Office compliance for Dynamics AX.