India-based Microsoft Dynamics partner lands in Australia, post ISV acquisition

Sonata Software has unveiled plans to increase presence across Australia, four months after acquiring Microsoft specialists Scalable Data Systems.

James Henderson Apr 05th 2019 A-A+
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India-based Sonata Software has unveiled plans to increase presence across Australia, four months after acquiring Microsoft specialists Scalable Data Systems for $5.5 million.

Revealed during an official launch at the Melbourne Cricket Ground, the technology provider will build out capabilities in the local market through Dynamics 365, while leveraging its trademarked Platformation methodology.

“Scalable Data Systems brings great value in terms of Microsoft Dynamics 365 capabilities and resources to Sonata,” said Srikar Reddy, managing director of CEO of Sonata Software.

“This will provide Sonata with additional IP and geographical reach, along with a strong fillip to its strategy to be a global leader in the Microsoft Dynamics 365 partner ecosystem with core IPs across wide range of industries and a global footprint, specifically also making us a strong Dynamics partner in the Australian market.”

As revealed by ARN, Sonata acquired Scalable Data Systems in December 2018, a specialist Microsoft Dynamics 365 partner headquartered in Brisbane.

With a deep Microsoft background, Sonata provides services across business intelligence, analytics and application development, in addition to cloud, mobility and social media solutions.

The acquisition aims to leverage the capabilities of Scalable Data Systems as a leading Microsoft independent software provider (ISV), specifically around finance and operations within the Dynamics 365 suite.

“Sonata’s entry into the Australian market offers exciting opportunities for local businesses,” added Brett Crew, founder and CEO of Scalable Data Systems.

“What we have is a capable team already established in Australia that is now backed by a broader, larger organisation, with centres of excellence across a whole range of areas such as data and analytics, platform engineering, mobility e-commerce, systems and infrastructure.”

Crew said Sonata’s Platformation methodology and wide-ranging expertise are “game changers” for local businesses seeking a “one-stop shop” in the form of a digital transformation partner.

“Being acquired by Sonata is a little bit like being a kid in a toy shop,” Crew added. “I have all of this technology, digital tools, platforms and a services organisation that I can leverage to build solutions that I only ever dreamed of creating.”

As reported by ARN, the channel has stepped up mergers and acquisitions (M&A) activity in 2019, driven by an increased need for Microsoft Dynamics 365 capabilities.

Within the space of a week, two specialist partners were acquired across Australia and New Zealand, adding to a recent global buy and a multimillion-dollar deal finalised in early December.

Collectively, the channel went to market four times in six weeks in search of expertise across enterprise resource planning (ERP) and customer relationship management (CRM) applications, with three specialists housed in Queensland, Australia.

Specifically, Rhipe entered into a binding agreement to acquire Brisbane-based Microsoft partner Dynamics Business IT Solutions in a $4.5 million deal, potentially rising to $8 million.

Two days later, Fusion5 followed suit with the acquisition of Dynamics Group, a start-up also headquartered in Brisbane.

Further afield, DXC Technology snapped up the service business of Danish IT firm EG, integrating offerings into the provider's Microsoft Dynamics business, Eclipse. The acquisition mirrors the double buyout of Sable37 in A/NZ and UK-based eBECS in early 2018, as reported by ARN.

Kick-starting six weeks of M&A activity was Sonata, which acquired Scalable Data Systems.

The acquisitions come amid a strong period of growth for the Microsoft productivity suite, with Dynamics 365 growing 51 per cent during the quarter ending December 2018.

Collectively, the vendor’s Dynamics business grew 17 per cent, with more than nine out of every 10 new Dynamics CRM customers choosing Microsoft’s cloud offering during the period.