Sonata Software Limited (SONATSOFTW) Earnings Call Transcript & Summary

Good afternoon, and good evening to all the people who have already joined us. I guess we can start off with our webinar today. In today's webinar, what we are essentially trying to cover is one specific area, which is about modernization, and in terms of how does modernization of your ERP help in terms of doing -- going on with your digital transformation journey. And to that, how does Dynamics 365, as a solution, is going to help you with that. So in today's webinar, we would have me -- myself, who is Hanumanth. I am part of Sonata, which is responsible for setting up this webinar, and they are also part of the Microsoft Partner Network, which is specifically works on modernization and upgrade of Dynamics 365 Finance and Operations for customers. In addition to this, we also have [ Jardine ] from the Microsoft team, who would be specifically talking to us about what are the new features and functionality that has come up with Dynamics 365, which would be beneficial to all of us who are using Dynamics as well as we'll also talk about some of the functionality -- and some of the incentives that essentially, Microsoft is offering us in terms of -- from their stable. Unfortunately, another third panelist, [ Pradeep Saha ], he has not been able to join us because of unforeseen circumstances. So what we would do is -- so having said that, now we could start off with the webinar actions. So going further, if you see what we are planning to cover in the agenda is we want to talk about what is modernization and why is it relevant for us to look at modernization. And if we were to do a modernization, what is the key challenges that we would face in modernization? So that's something that we will try to cover. And how do we want to approach it? What are the tools that are available? And then finally, we go into the questions, which would be there at the end of the webinar. So a couple of housekeeping items that I thought I should start off with: one is, we have a chat option, so please do use it in case you have any issues or any queries and we would be more than happy to address them. We will also have a question-and-answer session at the end of the webinar, wherein we will ensure that we answer all the questions that you have for us. So having said that, so let us start off with what is modernization and why is it relevant? So when we look at modernization, what we have -- what we see and what we have seen in terms of market trends is that there are 2 or 3 top areas that every CIO is worried about and is spending money on in terms of -- from a modernization standpoint. One is specifically is around cloud computing. How do you move your end -- existing infrastructure onto the cloud? The second is, how do we do -- go about doing digital transformation, right? In the new world, when there are newer models that are available, that people are looking forward to, people are looking -- and then also you have the aspect around how does your IT systems and specifically your ERP applications help you in terms of the modernization. Now in this particular webinar, what we would be trying to cover is how does Dynamics 365 help you as customers in all these 3 areas of cloud computing, digital transformation and the ERP application, which is a backbone, how these 3 can be achieved in -- during -- with the Dynamics 365 solution. So having said that, if you look at the specific areas that people have also been focusing on, right, one is the area of, say, IoT, which is essentially leading to a lot of companies in terms of -- helping in terms of their improvement in their operations. So that is one area which definitely a lot of companies are looking forward to. And we would obviously cover as to how those IoT and other newer technology solutions, right, will help in terms of improvement of operations. Second thing is, obviously, in terms of managing customer experience and customer expectations. So for doing that, there is a whole aspect around managing digital enhanced products. It could be in terms of giving the better services or it could be in terms of giving better experiences. How is that being managed and how it can be done using the Dynamics 365 solution? So moving on, primarily, when you look at what are the challenges, right, when you have the modernization that we need to do, and what are the challenges that a traditional ERP you would have, right? It is essentially, when you look at it, it is primarily around what are the 3 areas that we would say is important from a modernization standpoint. One is, is modernization which is required from a customer standpoint? As I was mentioning, there is a whole change in how you deal with your customer. And the digital transformation that is required for dealing with your customer is one of the first and foremost thing that most organizations are looking towards. And for doing that, how does -- how do you match your customer expectations. This could be in terms of whatever are the products that you are offering to customers, it could be in terms of the services that you're offering to customers, right? And how do you achieve these business outcomes? So that is a key in terms of you're looking at from the modernization from a customer standpoint. Now moving next is, in terms of -- modernization is also about bringing about agility. And when we mean agility, it is about how adaptable or how agile is your organization, right, in terms of being -- adapting to a quick change, right, to a -- in the environment? Now in these COVID times, if you would see, right, how is your system or how is your organization changing to the needs of the environment? Now, for example, what we have seen is that in retail organizations or retail stores and operations for retail, one of the things that has changed in the last 6 to 8 months is that online has picked up quite a lot. And online has become a key way to reach out to customers where their traditional retailing in terms of stores is actually being shut down because of lockdowns and because of COVID. So how can you easily change your organization or change your business models to adapt for this? That's all about modernization, if you look at it. The other thing is also that with your ability to go to newer markets or newer geographies or in terms of newer locations, how does your system enable you to do that? And how can you do that with minimum IT effort? So in terms of, again, looking at it, today's world is your market. You can reach out to anybody in any country or any location and still be able to offer your products or services to them. So in such scenarios, how can you be agile to be able to do that? So that is, again, what we're looking at from a modernization standpoint. Then the other aspect is your backbone, which is your ERP backbone, which is critical for you to be able to do your modernization in and around areas which are very specific in this new context. It could be in terms of how are you managing simple things like pricing, promotions, discounts. Earlier, it was okay or it was doable if you could change your prices and promotions and things like that, say, once a day. But now the need has become that you need to be able to change them in a much frequent process. So how can you do that, right? Then the other thing is, when you are talking about a global organization, where you are multi-country, multi-legal entity, how is your system specifically geared up so that you can pick up and do those transactions, right? Similarly, you have different business models that you may want. And for doing that, how does your system is enabled to do that? So now essentially, what we are trying to talk about in this whole thing is, yes, the key is that we need to modernize, and for doing this modernization, what are the options that are really available to you as an organization? One of the thing which you can look at is to do an upgrade from the current version of 2009 or 2012 that you have and move it to the newer Dynamics 365 solution. And by doing that, one of the things that you would gain, right, what are the things that you would gain and what are the things that you would get -- as you can use from the system standpoint is something that we would try to attempt and pass on to that -- you that information which you can use. And having said this, now let me just go to the next section where I would like to invite [ Jardine ] to talk about what are the new functionality, which is very critical that Microsoft has looked at, in its research and in its interaction with countless customers, that they have now brought into the new Dynamics 365 product, which essentially would then help each one of us in terms of modernizing the system and also be able to gear ourselves to the different requirements that are coming up, being it in terms of agility, being in terms of customer experience, also in terms of your back-office operations. With this, I would invite [ Jardine ] to please continue with what is new in Dynamics 365.

Thank you, Hanu. So the next screen, the true value of the business platform is the ecosystem it resides in, the AI signals internal and external that enrich the overall outcomes it creates for your business. Microsoft has the world's leading ecosystem for intelligent business solutions. We offer end-to-end capabilities across identity, security, management and compliance. This tech stack contains your building blocks to drive digital transformation and resilience for your organization. We have Dynamics 365 customer engagement, which includes the sales, customer service, field service and IoT. We have human resources, finance and operations, retail, marketing, mixed reality and business central. And then they are integrated with Office 365, which is now known as Microsoft 365; LinkedIn, the power platform; and the Common Data Service, which all sits on Azure, the cloud platform. We have over 600 Azure services, 25 years of Microsoft Research AI and 64,000 partners. We have over 300 data connectors to tap into your external data investments, for example, Salesforce, SAP, Amazon, Adobe, Marketo and Zendesk. The security response center handles over 7 trillion cyber events daily. Now let's move on to what we have in the system itself. So we have the Dynamics 365 Finance. So driving the strategic financial decisions with AI by assessing the health of your business, improve financial controls, optimize the cash flow and make strategic decisions faster to drive growth by using real-time financial reporting, embedded analytics and predictive insights. What this means is we close the books faster and simplify global financial management and increase profits and improve cash flow. Unify and Automate Your Financial Process enables smarter, faster actions and decisions with role-based workspaces that provide embedded Power BI, interactive data visualization, giving you high-level view of key business metrics. In other words, you get more done with role-based workspaces, you can customize documents such as invoices and statements and you thrive in a subscription-based economy with automated recurring billing. We reduced the operational expenses by minimizing costs and optimize spending across business geographies. Decrease the global financial complexity and risk by quickly adapting to change the local and global financial requirements with a flexible guided rules-based charge for accounts and dimensions that enable you to easily and accurately manage your financial operations. Next slide, please. And what's planned for the future of finance? There's asset leasing, which helps the customer feel more confident that they are following the proper accounting standards, reducing the risk of making or spending extensive time doing off-line calculations; automatically creating collection tasks that are based on rules lets your collection agents focus their activities on the areas that have the highest value for your organization; having a simplified historical view of an invoice saves both accounts payable professionals and vendor invoice approvers' time; the availability of good metrics can help your managers identify opportunities for greater efficiency, potentially resulting in cost savings; matching project receipts to invoice lines that have a 3-way matching policy, saves time and labor costs; also pre-validating vendor invoice posting saves time by ensuring accuracy of their invoice before its sent for approval. And just a little bit more on project operations. Next screen, please. It helps you run your entire services business from prospects to payments. It helps win more deals and speed up the sales cycle with quick and accurate quotes; optimize resource utilization by aligning the right people with the right skills to the right projects; speed project delivery with easy-to-use capabilities; simplified time and expense reporting from anywhere for faster reimbursements and client's billing; optimize project economics with costing, budgeting, invoicing, revenue recognition and compliance capabilities; discover business insights using AI and increased agility with visibility across all your teams for better, quicker business decisions. And what is changing? Next slide, please. It will come into effect October 1, 2020, but there will be no major disruption to the project service automation and the project management and accounting modules for the foreseeable future. It will only affect the new customers who will have to immediately move to project operations. Next, we will focus on supply chain. So to build a resilient supply chain we want to innovate with intelligent manufacturing operations by creating a connected factory to drive smarter processes and operations; automate and improve resource management across any workloads and track and manage your workforce, machines or tools; deliver mixed-mode manufacturing to support all your manufacturing strategies; improve on-time delivery by performing production planning in real time. We also want to modernize warehouse management by gaining end-to-end visibility of your warehouse operations and inventory; automation scale, your warehouse management to optimize use of space from stock rooms to distribution centers; get real-time intelligence about the health of your warehouse with Microsoft Power BI warehousing analytics; improve productivity using a mobile app that can be tailored to employees and warehouses to simplify the performance of daily tasks. Optimize production performance increases uptime, throughput and quality by proactively managing shop floor and equipment operations with a real-time view of your entire production and stock; drive efficiency across your assets and processes by using AI and machine learning to predict and proactively resolve issues; increased workforce efficiency and safety; and also maximize the life of your assets by improving the overall equipment effectiveness, maximize the longevity of high-value assets; and support various types of maintenance, predictive, collective, condition and preventative using the asset management adder. And finally, to automate and streamline your supply chain by getting a complete view of your supply chain across geographies and time zones, when you integrate sales and purchasing with logistics, inventory, production, warehouse and transportation; streamline your procurement processes with just a single application for pure -- procure to pay; improve your cash flow and reduce downtime by critical assets. And the next slide is just planned supply chain for the future. Here, we want to -- what we are looking at is enhancing the cost allocation for organizations, operation in high-volume, low-margin industries, such as service, retail or distribution. Archiving is added for inventory transactions and improves system performance when accessing and managing inventory information. The 2 manufacturing features will focus on enhancements to the job card device. The planning feature enables manufacturers to gain performance benefits during master planning. Planning optimization functionality facilitates fast master planning with MRP. A new standard inventory intervention is introduced for product version tracking. There will be a default RFQ, a reply field for vendor bidding, and a vendor RFQ search by procurement category. And then in the warehouse management, we will confirm outbound shipments from batch jobs, improve warehouse efficiency by allowing workers to optimize their picking sequence and simplify the receiving process for the warehouse receiving clerks. Next is the HR. We're transforming the employee experiences by fostering employee connections with rich employee profiles that will include career accomplishments, skills, certifications and any interests they have; enable self-service to let employees handle; profile updates, training; empower managers with team performance data, helping optimize team impact and address any immediate concerns; and help employee grow with training and certificate tracking by using the LinkedIn Learning. Also optimizing your HR programs by simplifying leave and absence reporting; by creating compensation programs, based upon defined guidelines by yourself that can easily adjust individually or in mass to automate a company-wide rollout; redefine benefits administration with flexible and configurable self-service enrollment tools; and find and engage the right candidates by adding LinkedIn Talent Solutions. Also, increasing organizational agility by reducing the organizational complexity; improving productivity and efficiency with automated processes, workflows and task management; drive business performance with the security, privacy and compliance delivered by human capital management, which is built on Microsoft Azure; personalize your solution and easily customize and extend the human resources using the Microsoft Power Platform, which is regardless of your level of technical experience. And finally, discover the workforce insights by improving workforce planning with rich dashboards from Microsoft Power BI, which will help you analyze and visualize all your human resources data from any device, like, mobile. Make decisions confidentially using embedded analytics that track and analyze HR programs. And then for the future, benefits management is coming in October 2020, and that will provide you with a flexible solution that supports a wide variety of benefit options. And it's an easy-to-use employee experience that showcases your options. Also, the employee and manager self-service allows both employees and managers to view and maintain their own information or information for the directs and extended reports. Managers often -- are often -- sorry, liaison between employees and HR. And to support managers, we're expanding the capabilities through the manager self-service. Next slide, please. So Microsoft Power Platform, which I mentioned in the last one, which extends the HR solution. It's a low-code platform that spans Office 365, Azure, Dynamics 365 and itself, stand-alone applications. It enables users and organizations to analyze, act and automate on the data to digitally transform their business. It is based on 4 pillars: Power BI, Power Apps, Power Automate and Power Virtual Agents. And it has 2 add-ons: AI Builder and Power Apps portals. Power BI is a bridge between data and a vision. BI is investing in 3 key areas that drive a data culture: data experiences, modern enterprise BI and insights where decisions are made. Whereas Power Apps is used to extend the legacy applications, building new solutions, extending Office 365 and Dynamics 365 that can be created across the web and mobile devices. Power Automate or workflow will offer customers a way to automate everything, from office apps to the legacy terminal applications that haven't been updated in decades. And Power Virtual Agents are chat bots, includes expanded capabilities so that there's deeper Microsoft Teams integration. Power Apps portals adds the Power Virtual Agents as a component in the Power Apps portal studio. And then AI Builder can be used to improve discoverability and integration with Power Apps and Power Automate itself. And then the data integration provides built-in connectivity to the Microsoft Power Platform and more with data across hundreds of business systems, enabling intelligent experience. There are many new capabilities: dual write exports to data lake, new connectors. It's improving all the time. So what is Common Data Service? The next slide, please. It easily structures a variety of data and business logic to support interconnected applications, and processes in a secure and a compliant manner. What does that mean? It securely stores and manages business data. It implements the common data model, which is a shared data language used by business analytical applications. It consists of a collection of entities, attributes and relationships that represents business concepts and activities, for example: accounts, contacts, products. There is a rich security layer in CDS, which provides authentication, auditing and authorization. There's a logic layer for consistent logic. There's a data tier, which allows you to report, model and catalog. There's a storage, where it offers optimum storage services by Azure, relational data, file and a data lake; and finally, an integration layer, which has the eventing, the webhooks and data export. Some of the new features -- it's on the next slide, please. Data management, which is a workspace, is a central workbench for asynchronous integration. It can be used in the data migration process. Next slide, please. Customers use and monitor their sales process with Common Data Service, while all aspects of fulfillment and invoicing using the rich functionality of finance and operation apps. Dual Write allows our customers to think about these applications as a system to which they can write simultaneously. It provides a near real-time and bidirectional integration between finance and operation apps and Common Data Service. For example, if the customer is enabled for Dual Write, any creation update in the customer entity, in finance and operation, results in it being changed in the Common Data Service in real time. Next slide, please. This is an open data initiative jointly developed by Adobe, Microsoft and SAP. There is a one data model on top of Microsoft Azure for data and AI. The standard scheme of definitions and the metadata system continues to bring unified understanding and semantic meaning across data, applications and more. And then last slide. And bringing this all together, Microsoft transformation engages the customers, empowers the people, transforms the services with new business models and optimize the operations, and siting as the main component is the data. You take the data from one system to another is key to business resilience. Microsoft focuses on tech intensity, how you adopt the latest technology, how you build your own capability and trust in our technology and the business environment. The ability of your business to survive and thrive needs an ERP system that is modern, unified, adaptable and intelligent. And I'll pass back to Hanu.

Thank you, [ Jardine ]. And having now gone through the new functionality that Dynamics 365 is to offer, so now let's go to the next part of how do we go about doing this whole modernization journey? I mean, in the sense that what does it take? What should be the aspects that one would need to cover and look at before you start off on this journey? And then how is it done? So let me cover a few things on that. So what -- from -- first, over here, let me just talk a little bit about Sonata and what is this offering that we have for modernization? So what Sonata has is a unique tool, which would enable customers to move from the Dynamics or AX 2009 and 2012 versions directly on to Dynamics 365. Now by doing this, there are a couple of things that we are able to achieve because of it being a single-step migration of moving, what essentially you would get is that there is a direct saving, which you get in terms of the need for you to do testing, in terms of effort that is required for doing the migration in a 2-step process and things like that is definitely saved. The other aspect is also the fact that this particular migration option is obviously backed by what we call as a factory approach because having done close to 50-plus customers where we have migrated them from different versions, right, of AX to Dynamics, there is a lot of knowledge that we have got, which essentially we can leverage in our customer scenarios. And with this, the advantage is that you would be able to do a factory-based migration or a modernization approach, which essentially would then help in terms of reducing risk as well as in terms of streamlining the whole process. So it essentially gives you a predictable and a much repeatable model. Moving on, the other important aspect is when you look at the whole upgrade or the modernization, there are -- I would say, it is like a continuum, where you have one side of it is where you have something called a technical upgrade. And on the other side of the spectrum, you essentially have a reimplementation. Now there are benefits that you would see in either of the scenario and then there are obviously not so benefit also that one would achieve. So when you look at the technical upgrade, the advantages are, obviously, that it would be a straight off like-to-like movement of whatever is the functionality that you currently have, so an as-is upgrade is what you get. Now the advantage is, your changed management in your company and things like that would be a bare minimum. But on the other side, you have a couple of problems or issues: one is, whatever is new in Dynamics 365, obviously, is not really being leveraged. The other thing is that, I'm sure, many of us have a lot of customizations that we have done in our AX systems. And when we are doing this upgrade, all these customizations also would just be moved on to the new system. So you would end up with a lot of redundant code which possibly you may not be using. And why do you want to take all this baggage into a new system, right? The other way to look at it is to do a reimplementation, which is essentially you're starting off with a fresh clean slate. But then, again, with this, the challenge is that you lose whatever the investments that you have done, I mean, a lot of investments would have gone in terms of data, in terms of -- it could be in terms of your customizations that you have and currently using, and the whole thing is lost, and you need to again rebuild that whole thing from scratch. So what we have looked at is that considering that these are the 2 ends of the spectrum, is there a midway or a mid-path that we could offer to our customers? And that is what we call as Sonata's hybrid approach. Here, what we are essentially doing is, it is not just that we would be doing a technical upgrade but we will also do a functional analysis of what is that the customer or in terms of the business processes that they would achieve or gain by using Dynamics 365. So essentially, it will help you in terms of implementing those. So it's sort of you're getting the best of both the worlds. Then the other aspect is also on the customization. So we talked about customization where you move everything or you don't move anything. Here, the approach that we take is an approach which is essentially a case wherein you can choose to move whatever is required. Which essentially means that you could choose or you could cherry-pick what are the functionality or customization that you can essentially move to the newer version. So that is the advantage that you get. So your customizations that you've already invested on, customizations that you're already using can be moved as is. So that's the approach that we typically offer. So an hybrid approach is what we offer. So what does this hybrid approach mean and how does it look? If I were to spend a couple more minutes on that, right? It is essentially where you're starting off, as I said, it is starting off with the key aspect, which is an assessment. So what you're doing in that assessment is trying to find out, do the comparison between what is there in the new Dynamics 365 versus what you're currently using. Try to do that assessment and then find out what is the upgrade or the migration strategy that you need to follow. And doing this, then you look at what should be your integration approach, look at what should your reporting strategy be and things like that. And then you do the analysis based on that, look at what is the gap fit that you have and what are the things that need to be moved? Post that, you actually do your upgrade. And here is where we have a lot of benefits that we can bring in based on the reusable code that we would have had. It could also be in terms of our business process libraries that we have already, which can be bring to -- brought to bear in terms of helping you design what should be your processes that you should upgrade to. And with this -- and then you have the additional functionality or the benefits that you get of areas like moving to the cloud, which is with your LCS tool, and then you have your data upgrade tool and things like that, which helps you in terms of doing your seamless upgrade. Post that, obviously, you get into your deployment and go-live aspect. So having said that, if you were to go in further that this is essentially what we are trying to say, what are the different aspects or different areas that one would need to focus on, right, look at what are the new features; try to map your functionality against what is your standard processes that are there in the product; look at different ISV solutions you may have, customizations you may have; look at whether those customizations are really required. And post that, you go ahead and try to actually do the update, right? Look at areas that you need to rewrite in terms of integrations, could be in terms of reports and aspects like that. And then you do your data migration, SIT, UAT and then finally do your deployment. So this is a typical -- if you look at it, it's a typical implementation sort of steps that you need to do. But it's only that, in the front, we are doing a lot of analysis, which essentially is helping us in terms of ensuring that the steps in the -- as part of the implementation project becomes as simple and as smooth as possible. Going on further, when you look at -- so we've already covered a few of this information that we talked about. What is -- what are the tools that are going to be used in this whole upgrade? And let me just talk about that for a bit. And then we talk -- quickly go on to just try to tell you, in terms of what are the benefits that you would get and what we have done with other customers, right? So when you look at the tool we have talked about, this is the core upgrade and analysis tool, which essentially then tells us that in terms of what are the areas -- so it's sort of a tool which essentially gives you the details as to what are the areas where there's a conflict, what are the areas that need to be re-factored and also it gives you a detailed estimate in terms of what needs to be done. With this, obviously, we are able to do things much faster. And hence, give the benefit that -- pass on the benefit to the customer in terms of doing things faster and better, right? And then you have the whole data migration and aspects like that. Moving on, this is essentially sort of giving you more information about the tool, right, where we have talked about what are the different versions that it supports. So it does support AX 2009 and then you look at -- it can be all versions of 2012. And also, it is something that can be relevant if you're at -- even in Dynamics 365 and you are on a version which is much earlier and you are looking at moving it, right? And then I talked about this that what are the advantages that you get in terms of -- from a code-based standpoint, and that is something that can be looked at, right? So there are cases where you can save effort, and hence, effort and time and costs in an AX 2009 scenario, which is up to 40% to 70%, whereas, if it is a 2012, it is right from 60% to 95% is the benefit that you essentially see. And what you are seeing over here is couple of details or couple of screenshots in terms of how the team -- how the tool would work. And what we have is, obviously, we'll be sharing this deck with you, and then you have links, which you can go into our YouTube Sonata -- I would say, the YouTube channel, where you can go in and actually see how the tool works and get more details around that. Further on -- moving further on, I thought I would just talk about -- I did cover about it in terms of what does it take for doing an upgrade assessment. You do a functional assessment, technical assessment, right? And then we also help in time to try to put a business case or an ROI, which in terms of what will be the benefit that you get. Because here, you're moving in from, say, an on-prem type of scenario to a cloud. So there are benefits that you're getting in terms of hardware. You're getting benefits in terms of what is the maintenance that you may have to do on the hardware and other aspects in addition to, obviously, you're moving on to a newer system and a much contemporary system, I would say, and then you work on the upgrade strategy. Then moving further, this is essentially what we wanted to quickly give you an overview in terms of what we had done for a customer of ours where we have done the upgrade. And this is a customer which is spread across 11 legal entities across 8 different countries, right, with lots and lots of code, which had been customized, right? And as part of this, we were able to do that from close to around 11 ISV products that they had, right, we were able to bring it down to 3 ISV products that essentially they could use, right? And then there was a huge amount of customizations that we could remove or deprecate because of the newer Dynamics 365. Moving on, specifically further, it basically talks about what is the benefit that the system was able to accrue for them where we looked at the lower TCO, as I said, because you're moving on to the cloud there's savings that you get because of maintenance and how you manage the system, then you have additional product functionality that, obviously, [ Jardine ] has talked about, which you are getting as part of it. There are new modules that you get as part of it, like, advanced warehouse management and aspects like that, which will essentially help you in terms of moving further. And then going further, essentially, I -- what I wanted to also cover is what is the benefit that Microsoft is offering in this scenario, and I would like to have [ Jardine ] to talk about this in a few words.

Yes, okay. It's just that there is some software incentives for the COVID response solutions. Like, the customer service and the Dynamics 365 Remote Assist will be free until the end of September at the moment. There's also -- we have launched a PMO team to help design and develop and deploy reusable applications using a shared-factory-model approach, and this usually is done within 5 days. Next screen, please. And here, the main point is, it's catered towards more of the health care and across-the-industry environment, but there's a COVID-19 app, that's there to help empower the health care organizations to build and deploy chat box and health assistance, and it also helps with their scheduling, resource scheduling, and it allows to gather patient data and demographics that will help with the process in a preregistration process. Next slide, please. And as Hanu mentioned, there is this migration program. It's available to all previous AX customers. There's a dedicated Microsoft adviser. There is a no-charge assessment for -- by Microsoft. And then there's some offers available, special offers and financial assistance, which a Microsoft adviser can discuss with you, if you qualify. So this is all available to you at the moment and it's no charge assessment. So if we move on. And this is just really -- it's just reiterating what Hanu said. There's one option, which is the standard migration assessment, and this Sonata is one of the few partners qualified to deliver. It covers the functional and technical assessments of the AI customer. It's kind of like a 2-day virtual SMA at no cost and no obligation to the customer as well. If you feel this doesn't help you in your business, there's no obligation to obtain it. So next slide, please. And this is just what Hanu mentioned, there's an initiation, then there's the functional review, technical review, and then it provides a summary of what is discussed in those assessment in those few days. So next slide, please. This is another option. So it's kind of like a full-scale bill of materials available. So there's like a rapid technical upgrade and then there's a full and technical and functional upgrade. So that's a second option. And I'll pass back to Hanu.

Thank you, [ Jardine ], for that. And this essentially brings us to the end of what we had to present. This sort of gives you a sort of quick overview in terms of who we are from a Sonata standpoint, right? We've been working with Dynamics -- on Dynamics with Microsoft for the past 12-plus years, and essentially, we have quite a number of our resources who are on Dynamics, close to around 180 engagements and aspects like that. And also, this is -- we are not only focused only on the ERP side of things, which is F&O, but we are also -- do work on CRM, which is customer engagement, and also have a full-stack experience in terms of Power BI, then your Power Platform and aspects like that. So that's what we had. We have a couple more minutes, which we can take a couple of questions, more than happy to answer. I see there are a couple of questions that are -- that have already been posted. Maybe I'll just read out a couple of them, and then I'll go to that.

First question was talking about, with COVID, specifically when there's no travel, right, for some time, so how do we normally execute the upgrade assessment? It's a good question. And what we have been able to manage and we have actually got that whole process also pretty well laid out, where we are able to do this whole assessment aspect, more or less, from remote, right? So where we have different mechanisms by which we reach out to our customers, right, in terms of, it could be in terms of video calls, it could be in terms of, say, connectivity solutions like team -- Microsoft Teams and where we do our analysis. And then obviously, you have the technical assessment, which is a tool-based assessment that is anyway done when you get access to your system. So there are -- that is done. And then this whole thing is obviously presented back to the customer. So it's quite an interactive, I would say, time that would be there. But yes, it is something that we've been able to do over at least in the last 6, 7 months, specifically managing to do it from remote. The other question which was there was, whatever are the functionalities that have been given as part of F&O or other -- sorry, whatever the functionalities that you've talked about? Is it part of the F&O or is there anything else that we need to buy, right? Maybe I'll start off and then [ Jardine ] you could possibly pitch in, right?

Okay. Yes.