by Helen Sanders, Editor
Since 2006, we have been pleased to present an evolving case study of Microsoft Corporation illustrating how the implementation of SWIFT has developed. In this feature, we take a snapshot of progress at three points: 2006, 2008 and 2009, and we are delighted to talk once again with Ed Barrie, Group Manager for Treasury, Microsoft Corporation.
Microsoft Treasury, based in Redmond, Washington is a centralised operation responsible for all elements of cash management, FX, corporate finance, risk management and credit and collections. The company has around 100 banking partners and 1,000 accounts of which 400 are managed by treasury. Seven staff manage the Treasury Operations and four manage the subsidiary Cash Planning function. Microsoft started a project in 2005 to consolidate and streamline its back-office cash management operations using SAP, which is used throughout Microsoft. This included bank communication, payments, bank account reconciliation, FX transactions and creating an in-house cash centre to manage intercompany transactions and subsidiary funding.
The global SAP cash management implementation was the starting point for a project to implement direct SWIFT connectivity through MA-CUGs, which is achieved using Microsoft’s own BizTalk Server and Microsoft BizTalk Accelerator for SWIFT. Six pilot MA-CUGs covering 100 bank accounts went live initially in October 2006, with the aim of connecting with nearly 30 banking partners covering close to 90% of its bank accounts via SWIFTNet by June 2007. Prior to this, Microsoft Treasury did not have daily electronic visibility over these accounts and had hundreds of users across the company accessing numerous third-party banking applications with their associated direct and indirect costs. There were also problems with consistency of security across the various banking systems in a widely disbursed organisation.
Six pilot MA-CUGs covering 100 bank accounts went live initially in October 2006, with the aim of connecting with nearly 30 banking partners covering close to 90% of its bank accounts via SWIFTNet by June 2007.