Waterloo Managed Software Services USA Inc. (WatServ), which specializes in hosted Microsoft Dynamics ERP solutions, has partnered with Online Tech to gain more data center capacity for its U.S. and Canadian customers. The partnership involves two Michigan Data Centers operated by Online Tech. The relationship shows how SaaS providers and managed hosting providers continue to march forward even as Microsoft continues to extend its own Dynamics clouds business.

The Online Tech data centers are SAS 70 Type II Audited, helping SaaS providers to comply with regulations like Sarbanes-Oxley. Also, the Michigan area has the lowest frequency and severity of natural disasters in the nation, Online Tech claims.

WatServ positions itself as a leading provider of hosted ERP solutions. That’s both a blessing and a burden. On the one hand, the SaaS and cloud ERP markets are surely expanding — a fact reinforced by recent NetSuite quarterly financial results. But on the other hand, WatServ faces potential competition from Microsoft’s growing cloud efforts and alternatives like NetSuite and SAP Business ByDesign.

Meanwhile, Online Tech promotes basic and managed colocation, managed dedicated servers, managed and private clouds, and disaster recovery — all within the company’s SAS 70-audited data centers.

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