More news pegged to Microsoft’s Convergence conference this weekend: Two former execs from the company’s small-to-midsize business software group will be announcing the formation of Kineticsware, a Kirkland company building industry-specific solutions on top of Microsoft’s Dynamics platform.
Kineticsware has actually be running quietly since founders Jeff Sampson and Richard Barnett left Microsoft last summer.
Sampson, a former investment banker and startup veteran, was global director of Dynamics product management for two years. Barnett worked in several enterprise software companies before he became Dynamics marketing director.
Dynamics is the result of billions that Microsoft invested in the small- to mid-market space, starting with Great Plains and Navision. Sampson and Barnett said it’s all coming together and they wanted to catch the wave with their own company.
“The thing that was just stunning to us was the product, unaided, was growing at 10 times the market rate of ERP in general,” Sampson said.
“Microsoft has been just very quietly putting all the pieces together, integrating it into SQL Server, Sharepoint, Biztalk, all these fantastic products, but not really telling the world all about it,” he said.
Kineticsware launched in December with solutions targeteing the apparel, consumer goods and high-tech manufacturing industries.
Xbox as their first customer and now have 30 employees and offices in Denver, Chicago, Dallas and Atlanta, as well as the Carillon Point headquarters. They also have a few employees in The Netherlands, they opened a U.K. subsidiary in January and they plan to have 50 to 60 employees by year-end.
Initial funding for Kineticsware came largely from the sale of thePlatform, a Seattle broadband service provider, to Comcast last year. Sampson was the initial investor in thePlatform and served on its board.
Kineticsware also expects to close on a $3 million to $3.5 million funding round next month.
Sampson said Kineticsware should be profitable by the end of 2007.
If they’re right, I wonder if we’ll see more startups around here building on Dynamics.