Avanade microsoft ax

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Avanade officials went to ScanSource's headquarters to study its systems and gather information from users. Subsequently, Avanade gave ScanSource a "day in the life" presentation that showed how AX would be a good fit. However, "As Avanade knew but did not disclose to ScanSource, this pre-contract product demonstration, which consisted of mocked-up simulations of the Microsoft AX software, did not reflect the software's actual capabilities or functionality," the suit states.

Avanade also allegedly conducted a "classic bait-and-switch" on ScanSource, by "drastically increasing" its estimated fees after being on the job for a few months. ScanSource has had to scale down some of its project requirements in order to rein in costs and stick to a schedule. It has also had to keep using some older applications and write a number of new ones to fill functional gaps, according to the suit.

Microsoft and Accenture weren't unaware of the problems with the project, the suit adds. In fact, the parent companies performed ongoing quality assessments, and Microsoft was highly critical of how Avanade was customizing the code, according to the suit. Accenture has a majority stake in Avanade. Microsoft and Accenture also proposed a project plan meant to get the effort back on track, but ScanSource ultimately decided to sever ties with Avanade.

We intend to defend our position. Microsoft has since released an updated version of AX, version A second installment of AX that became generally available in December has new features meant to make it easier to run global operations.

It wasn't immediately clear Thursday whether these features would have helped avoid the problems ScanSource's implementation allegedly faced. ScanSource's allegations "read like a textbook about consulting gone wrong," said analyst Michael Krigsman , CEO of the consulting firm Asuret. At the same time, it's worth asking why it took so long for ScanSource to dump Avanade, he said.