ISV Talks
ISV Talks
ISV Talks recaps The BizApps Partner Summit with Carol Livingston and Bob McAdam
The AI revolution waits for no one—and Microsoft wants its partners to know it. In this revealing conversation, Carol Livingston and Bob McAdam unpack the seismic shift happening in Microsoft's partner strategy following their attendance at the BizApps Partner Summit (soon to be renamed the AI Business Solutions Partner Executive Summit).
The urgency in Microsoft's messaging was impossible to miss. Gone are the days of gradual technology adoption curves—while personal computers took 12 years to become ubiquitous and cloud computing took five, artificial intelligence is expected to transform business completely within just two years. And as Bob pointedly observes, "one year has already gone by." This accelerated timeline has Microsoft executives sounding an alarm that partners can't afford to ignore.
A particularly striking theme emerged around becoming what Microsoft calls "frontier firms"—partner organizations that embrace AI internally before advocating it to customers. The stakes couldn't be higher, with one panel moderator bluntly stating that partners failing to adopt AI strategies might not survive beyond the next 12-18 months. This evolution isn't just about prompted AI tools that require human direction, but autonomous "agentic AI" that operates independently in the background, potentially becoming part of organizational structures. As Carol notes, "It kind of freaked me out when they said agents are part of your org chart."
The future clearly belongs to those who adapt quickly. For ISVs, this represents both challenge and opportunity as Microsoft looks to them to develop industry-specific AI solutions. Perhaps the most sobering insight came from a conference speaker who observed: "AI is not going to take your job away. Someone doing your job with AI is going to take your job away." Where does your organization stand in this rapidly evolving landscape? Are you becoming a frontier firm, or risk being left behind?
Well, welcome to this episode of ISV Talks. I'm Carol Livingston from Dynamics Connections and your host of ISV Talks. On this episode, I have my friend and colleague, Bob McAdden. Welcome, Bob.
Speaker 2:Thank you, carol, nice to see you again after last week in the Pacific Northwest, and it's always great to chime in with you here on ISV Talks.
Speaker 1:Yeah, thank you for joining. Yeah, you and I both attended the second annual BizApps Partner Summit hosted by Dynamics Community, so I wanted to do a quick recap with you about kind of what our thoughts, observations. I know we had a few advanced networking moments where we did talk about it during the conference, but now that the conference has passed, so let's get into that.
Speaker 2:It would make sense to do a little background, I think.
Speaker 1:Yeah.
Speaker 2:There was a time I'm old enough to remember, as are you, when Microsoft did the Inspire show every July to kick off their new fiscal year and partners from all over the world would come to Seattle or Las Vegas or wherever they were going to hold it to kick off a new sales year and then, kind of like the old Convergence, a good event discontinued post-COVID.
Speaker 2:In Convergence's case it was pre-COVID, but they just don't do that anymore. So our friend John Seifert at Dynamic Communities fills the gap last summer in July 24 with this new thing called Biz Apps Partner Summit, where it's no end user, all partners and ISVs getting together near Redmond. So it's convenient for our friends from Microsoft and I think their goal last year was 300 people and they got 300. And I think you and I were much the same in that. When we left that 25-hour immersion, as John calls it, we were like that was pretty good, that was good, Good stuff and he really kept our attention and had good speakers and good input and a great time to visit with ISVs and SIs in our space. I really enjoyed it.
Speaker 1:Yeah, you're right. Since it was the first year, we didn't really know what to expect Definitely, and this year they did take some feedback on the second year, one of the things I think they heard from like ISVs who attended and there was quite a few in the audience last year- is that they wanted some content for them, right, because they're working in the channel and they're a Microsoft partner as well.
Speaker 1:So they did do kind of on day two, a keynote for ISVs. So they had kind of the head person for the ISV community from Microsoft. They had a breakout session for the SIs or partners and then a breakout session for the ISVs. Of course we got shuttled off into a separate room that had it felt like they turned on the heaters, like we were in the sunroom or something.
Speaker 2:anyway, Second-class citizens compared to the retailers. I get it.
Speaker 1:Yeah, that was standing room only. I mean, it was hard to get a seat in there and that lasted probably about two hours right. Bob, what are your thoughts about the overall theme this year? And the topic of AI, of course, continues to be the theme for Microsoft, but what do you think was different about their messaging this year?
Speaker 2:Okay, without question, and we all knew before we showed up at the Hilton Bellevue that AI would be the talk of the town, just like it is at every other Microsoft show, whether it's Summit or Dynamics Con or whatever. But this time around, there was a massive sense of urgency that accompanied the AI messaging from Microsoft. They beat the urgency drum over and over and over again. Essentially, if you're not on this path five minutes after you leave this conference, you're already behind. Right, if you're not starting yesterday, there's a problem. They talked about all these resellers adopting AI within their companies becoming frontier firms. Right? They use that phrase frontier firms frequently in the two days.
Speaker 1:Right Use that phrase.
Speaker 2:Frontier firms frequently in the two days Right and they said if you can get this going starting yesterday in your firm, then you'll help your customers leverage it faster and then they'll grow faster and you'll see the results sooner than later. But yeah, the urgency drum was pounding in every single session.
Speaker 1:Yeah, definitely Like Frontier Partner. Another theme I heard was be the zero customer right. Be first to use it in your organization. It kind of makes sense because you don't want to talk to clients about something that you don't even use practically in your own business. So you have to adopt it internally, even in your own business as a partner, before you go and take that to a client. I mean there's just no credibility to say, hey, you should buy these co-pilot licenses but you don't use it right. And the other thing too, bob, is I heard it a couple of times that when partners show up and they're in the boardroom with their customers and the executives, they want to know, like, how are you using it? Then we'll talk about concepts. They'd really want a menu to pick from right. So like, give me an idea, give me a list of things that you can offer me and how it can help my business.
Speaker 2:Yep, you're exactly right, and the adoption of AI is obviously quick. I don't know if you remember this, but they had one slide where they said the personal computer took 12 years to essentially be ubiquitous in our society, and the cell phone seven years to become ubiquitous, and cloud computing, which we talked about for a long time to get people over that hurdle five years. And now they're saying AI will be two years to become ubiquitous in our businesses and in our lives. And, if you ask me, one year has already gone by. So while you and I sit here talking about this short runway for AI, the time is ticking quickly and that slide was really, really interesting to see.
Speaker 1:Yeah, the velocity of it and you think about Copilot was only released in 2023, and here we sit in 2025. And even from last year to this year in terms of kind of the maturity or speed in which how Microsoft's talking about it. In fact, one of the things, wasn't it that they kind of rebranded, actually internally to refocus a kind of pivot to AI first, so the name of the groups now start with AI, right, the next year they even rebranded the partner BizApps Partner Summit is no longer that. It's the AI Business Solutions Partner Executive Summit.
Speaker 2:Kind of a long name, but yes, yeah, executive Summit Kind of a long name, but yes, yeah, they talked a lot about changes to biz apps and modern work, and all these groups, or the newly formed AI Business Solutions Group, has AI in the name and it's going to incorporate AI business processes and AI workforce together. So everything Microsoft, not just the urgency and their messaging to partners it's all labeled AI and John Seifert, who is a smart guy, was smart enough to rename this conference to the AI Business Solutions Partner Executive Summit. So, yeah, it's having its effect all across our industry faster than we ever imagined and, like you and I were talking before we hit record. It is exhausting. It's coming quickly. It's like man, if I was 35 again, I could probably handle the speed at which this is all coming, but it is exhausting having it come out so quickly from Microsoft along with the urgency to begin yesterday.
Speaker 1:Yeah, there is that, but it's kind of like just another tool in the toolbox, and I did love that there was a session from one of the Microsoft speakers talking about they have a whole library of business processes and kind of back to the basics. Right, let's do basic business consulting, look at their business needs, let's map out the process and then let's see where the ERP can fill that need or AI could fill that gap or an ISV, right. So it's another tool in the toolbox. It's not separate, it's not like add-on. I feel like from last year's conference to this year it's sort of like here's Copilot, over here you should be selling it, and this year it was like no, it really is part of the integrated system.
Speaker 1:And there's really two components. There's the kind of AI that we probably use in our day-to-day life. Now we're starting to use it in emails or creating posts on LinkedIn or creating content. So it's more of a prompt and you're asking human intervention, right. You're asking for it to respond. Now there's AI agents, right, there's this whole agentic AI that's what they call it. So in that era it's really autonomous AI agents working in the background and doing emails and responding and looking at different data in the system to pull together information.
Speaker 1:So it's working regardless of the human intervention right, which is kind of new and scary, I guess because, you're not involved as a human, but it kind of can take care of a lot of those mundane tasks, and I feel like that was sort of like okay. So we're at this point of using AI. Now we're using it in agents right, those independently running agents, now what agents right, those independently running agents, now what? How do we govern that? How do we set policies around that? And what can Microsoft do to kind of give us sort of the starting point? Right, they said they have a whole library of predefined AI agents that you can start with.
Speaker 2:Yep, I guess there's a payables agent in preview for Business Central right and some aspects of payables or wrecking the bank or general ledger reconciliation.
Speaker 2:Those are mundane tasks that you and I have done a million times with pencil and paper and all that jazz, and it's boring, it's not exciting whatsoever, and if I could have an army of agents that specialized in those types of tasks, I wouldn't be wasting my time on this stuff that I hate doing. I'd be making sure it was all done and then I could start making decisions based on the data, because it's getting reconciled and or finalized faster by an agent who's working diligently, doesn't call in sick and all that sort of thing. So you're right, it is coming on fast and it's kind of scary. But it is also pretty neat that some of these accounting is accounting is accounting. It's not always the most exciting thing in the world, but firms that close their books each month or each quarter and can get results out better, learn faster, make better decisions, they're going to benefit in the long run and if these agents are working for them, then, boy, it's going to pay off. You'll see the ROI quickly, no question.
Speaker 1:Yeah, yeah, no doubt. And what do you think ISVs I mean they talk to ISVs about being influencing this whole generation of IA agents. Like how can they help?
Speaker 2:That's a good question. At Tasklet, we are working on internal AIs. We're following the same structure getting our internal operations working with AI so we can be a frontier firm sooner than later, and then, once we're there which will hopefully be soon we'll start to insert AI around our warehouse management solution. So, yeah, if everyone internally, be it in Northern Denmark or West Central Florida, can master AI internally with things that we need to do to do our job better, that'll result in being able to roll it out on devices and then getting our customers really, really good with our offerings because the AI agents there are working in their favor.
Speaker 1:Kind of already automating things in the background and one thing I heard on the ISV side, where Microsoft's looking to those partners to help with the more vertical or industry solutions. Right, like you guys are in the supply chain distribution area, right? So you? Can actually be right there on the forefront of developing AI agents and AI to manage processes in the background that don't require human interaction.
Speaker 2:So yeah, it's really. It's really neat the potential for AI to work some really cool magic in our business and other related. There's an ISV for everything, because there's so many business processes or things you could do better with with Business Central or F&O, and to think that all these agents will be rolled out and making those even more refined and more efficient is really, like you said, frightening and cool at the same time.
Speaker 1:It is frightening, like when they said that you had agents managing agents and that they're part of your org chart. That kind of freaked me out, right.
Speaker 2:Like.
Speaker 1:Okay, you not only have humans on your org chart, but you also have agents on your org chart running processes. That kind of freaked me out.
Speaker 2:Another thing that freaked me out was the panel at the end of day one partner summit soon to be renamed AI business solutions partner summit and the moderator said more than one time that if partner firms don't become frontier firms sooner than later, they won't be in business in 12 to say 18 months. And that was like okay, if you're trying to make a point and have a different way to do urgency, that's fine, but there's a lot of people in that room that we've known for 20, 25 years, maybe longer, and I don't know. I have a hard time seeing them out of business, given their longevity and expertise it did. That did catch me by surprise.
Speaker 1:Yeah, I was shocked. I was like what, what did he just say? He, says yeah, if you're not using AI internally and using it in your business strategy, then you're going to be out of business in 12 to 18 months and he said it more than once so. I don't think he was like mistakenly saying something. He intentionally said that.
Speaker 2:And that panel that last one on day one, had some of the largest firms in our industry and there is no doubt in my mind that Microsoft has already been bending their ear saying you folks need to drive AI in this channel and set the example for the smaller firms. I'm sure they've heard it already. I'm sure they've heard it already they're expected to lead, given their size and resources.
Speaker 1:So yeah, yeah, yeah, even some of them said on the panel that that they're doing hackathons or they're doing training internally or they're doing little kind of company meetings or team meetings where they're building an app together. So they're using Copilot Studio themselves just to get familiar with it and use it and force themselves right.
Speaker 1:They wouldn't do it, naturally right. So they're making it an intentional part of the organization internally to learn it and in that sense of urgency too, I definitely agree with that absolutely, because it does feel like and I said this on my recap on linkedin, but I do feel that way I feel like kind of, finally, microsoft sounds like they're leading in this space, because prior to this, I always feel like, well, they're always late to the party. Like they're leading in this space because prior to this I always feel like, well, they're always late to the party. Right, they're not the first of the cloud with business apps. In this case, it feels like they are trying to lead the charge and it's a pretty strong. They're fighting some strong headwinds, but you can tell they've pivoted their organization. Compensation sounds like it's going to be around more AI metrics as well, so it'll be interesting to see the changes a year from now, right?
Speaker 2:Yep, exactly One speaker last week said it best. I thought AI is not going to take your job away. Someone doing your job with AI is going to take your job away. I thought that was interesting.
Speaker 1:Yeah, exactly, well, maybe I'll share next year. They already changed over the website and they have the new early bird special posted out here for the new AI business solution partner executive summit. Ai Business Solution Partner Executive Summit the website if you Google or search on AI Business Partners Executive Summit, you're probably going to go to the BizApps Partner Summit the previous website of the conference, but anyway it's out there If you want to see the dates. The venue hasn't been completely firmed up yet, but you can start buying your tickets for next year.
Speaker 2:Yep, you can buy your ticket already. They're anticipating more growth. They're going to be at a different hotel, still in Bellevue, because that's convenient to Redmond, but yeah, now it's going to be 36 hour immersion instead of 24. And my guess is more than 500 partners easily will show up for third week in July show, because John's got something good cooking here and you and I have both been twice and we both left saying gee, that was time well spent. So if you haven't been yet, put it on your event list for 2026 and we'll see what Microsoft has to say one year after telling us we should start yesterday with AI.
Speaker 1:Right, yeah, it'll be interesting to see next year how much the channel has progressed in those new priorities for this new fiscal year. And they did have a stellar year this last year. So even more money to invest in the channel right.
Speaker 2:Oh yeah, today, on the day we're recording this, microsoft just announced earnings. They killed it for the most recent quarter. Their stock is way up. I mean it's insane how well, how good of a quarter they had in Q4 2025.
Speaker 1:So they did thank the channel several times. Thank you, channel, for doing a great job. That's right.
Speaker 2:Thank you, partners, for our wonderful news block price today. It's wonderful.
Speaker 1:All right. Well, we'll see you guys on the next episode of ISV Talks. If you haven't thought about attending this conference, check out the website. Maybe put it on your calendar Plan to attend next year, because it's definitely one of the most important events on the Microsoft channel, for sure.
Speaker 2:Yep, amen, I'll be there, and I know you'll be there too, and my plane rides a lot longer than your train ride, so there.
Speaker 1:Hey, the Amtrak train was great, so I'm going to keep doing that.
Speaker 2:That's good. That's good. It's only like six hours from Tampa, it's not a big deal.
Speaker 1:Yeah, versus my three hour train ride. All right, guys. Well, thank you so much, bye. Bye, friends. We'll see you on the next episode.
Speaker 2:Bye bye, thank you.