IT management, MSP, Content

Microsoft Building Professional Services Automation (PSA) Software Tool?

Is Microsoft finally preparing to build professional services automation (PSA) software for partners, IT service providers and MSPs? Speculation about that topic emerges every few years. And the speculation is now back.

The latest chatter involves the future evolution of an existing product called Dynamics 365 Project Service Automation. According to MS Dynamics World:

"Microsoft plans to remove Dynamics 365 Project Service Automation from the business applications portfolio, with plans to offer it in combination with other project management tools instead. That revelation came from partners who have seen the latest Dynamics 365 pricing and licensing slide deck from Microsoft."

So what's the plan? The short answer: Microsoft is merging Project Services Automation and Project Online into a new project management tool to be called Project Service, the company told ZDNet.

Microsoft Dynamics 365 for Professional Services

Ahead of the new Project Service launch, Microsoft had been promoting Dynamics 365 to professional services firms through videos like this:

Video link

Admittedly, Microsoft has stopped short of promoting Dynamics 365 to MSPs (managed services providers) as a true PSA (professional services automation) software platform. So I don't necessarily see near-term, head-on competition from Microsoft against SMB-focused MSP tools like ConnectWise Manage and Datto Autotask PSA.

Still, we're curious to see what Microsoft has in store for the forthcoming Project Service platform.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.