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NetSuite takes aim at on-premise ERP VARs; makes offer that’s hard to refuse

NetSuite Brings It All Together for Channel Businesses Eager to Grow Again: Leading Cloud Computing Business Suite, 100% Margin, Recurring Revenue, Sales and Technical Training, and Marketing Support

SAN MATEO, Calif.—March 2, 2010—NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced an aggressive new channel sales program, including a 100% margin offer, designed to enable channel businesses to meet customer demand for modern cloud-based solutions while migrating their current business models painlessly. The NetSuite SP100 Program brings together all the ingredients solution providers need to reinvigorate their businesses, incorporating NetSuite’s industry-leading cloud computing business management software suite with sales and technical training, ongoing marketing support and a limited-time offer of 100% margin on first-year license subscriptions.

The program should have particular appeal to channel businesses that are struggling to reverse steadily declining revenue streams due to sagging demand for old legacy on-premise systems such as those offered by Microsoft, SAP and Sage. For more information about the NetSuite SP100 Program, please visit www.netsuite.com.sg/sp100.

The NetSuite SP100 Program breaks the mold of traditional on-premise revenue sharing. For qualified new customer transactions of 24 months or more, NetSuite SP100 partners realise the entire year-one software subscription revenue, enabling them to quickly recoup costs of sale and jump-start their first half of the 2010 revenue. Under the NetSuite SP100 Program, partners also enjoy 10% margin on all renewals, establishing a recurring revenue stream that can be quite lucrative as the partners' NetSuite business grows.

"With this new program, NetSuite takes dead aim at the partner networks established by competitors including Microsoft, Sage, and SAP, who have been irresponsibly slow to innovate new applications that take advantage of cloud economics and productivity," said Zach Nelson, NetSuite CEO. "The market for cloud computing is surging, but the ERP dinosaurs have nothing to offer their loyal partners. NetSuite is here to protect their futures."

"NetSuite reinvigorated our business," said Simon Whittle, The AIS Group, longtime Microsoft Dynamics VAR and new NetSuite Solution Provider. "After a tough year, NetSuite has given us new drive and excitement and a really good kick in the pants. This year we expect NetSuite to account for 50% of our new customer wins. We are positively looking forward to this year and beyond."

The NetSuite SP100 Program includes many of the key advantages previously available to channel partners, including commissions paid on customer collections. Most NetSuite customers prepay for service anywhere from one to three years in advance, meaning the revenue split for the entire period is available to partners as soon as it is paid. And NetSuite remains the only top-tier cloud computing ERP suite provider who pays channel partners for customer renewals, not just new sales.

"If you ask many VARs how their business has changed over the last 10 years, most will say it’s pretty much the same, just tougher. Yet buyer behavior has definitely changed with, most recently, a strong move towards cloud computing," said Brian Sommer, President, TechVentive, a leading industry analyst and advisory firm. "Programs like NetSuite’s SP100 should serve as a wake-up call for VARs because it’s not a question of IF they should add cloud computing solutions to their portfolio, it’s WHEN."

Pioneering the Channel for Cloud Computing
With a ten-year lead over many traditional software companies only now beginning to understand the power, convenience, flexibility, and security of cloud computing solutions, NetSuite seeks to become the new gold standard for VARs and solution providers seeking sustainable growth and opportunities. NetSuite’s aggressive new channel compensation plan is just the latest in a long line of milestones for the leader in cloud computing business management suites. Since establishing its first channel program in 2002, NetSuite was the first and is one of the few cloud software vendors today to offer the cloud-based channel program to pay its partners margin on renewals for the life of the customer relationship.

In addition to its leading cloud business management suite, NetSuite also offers partners the many benefits of the SuiteCloud Development Program and network of ISVs who are developing a new generation of vertically-focused cloud business applications that extend the value of NetSuite. The SuiteCloud platform and SuiteFlex and SuiteScript languages provide solution developers with standards-based conduits for customisations and new functionality. The NetSuite platform can be adapted to a host of new verticals, without committing to the upkeep and maintenance of a custom enterprise IT environment. NetSuite frees solution developers to focus on process improvements and customer-specific functionality, instead of database synchronisation and middleware.

NetSuite Cracks Gartner Top 10 for ERP Vendors
Gartner Dataquest recently released figures showing that NetSuite has joined the ranks of North America’s top ten ERP vendors by revenue. Strategic advisory service ISM Inc. recognised NetSuite and NetSuite CRM with a Top 15 CRM Small & Medium Business Software Award for 2009. Customer Interaction Solutions magazine named NetSuite CRM as a recipient of a 2009 CRM Excellence Award. Most recently, British businesses named NetSuite the top Enterprise Accounting Software vendor in Sift Media’s Software Satisfaction Awards 2009. These awards validate and reinforce NetSuite’s mounting importance to companies of all sizes looking for a powerful, integrated enterprise management solution.

For more information about NetSuite Inc., please visit www.netsuite.com.sg

NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.

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