Microsoft Chases NetSuite’s SaaS ERP Customers
All’s fair in love, war and the software market — where Microsoft is offering substantial dollars to U.S. customers that dump NetSuite for Microsoft Dynamics. The move comes only a few days after NetSuite started offering on-premises VARs (i.e., Microsoft’s partner base) new revenue incentives to promote NetSuite. Here’s a look at the ERP sparring match.
First, a bit of irony: NetSuite has successfully shifted quite a few on-premises SAP customers to NetSuite’s ERP SaaS offerings. But now, Microsoft is stepping to say not all customers want SaaS. To prove its point, Microsoft is offering U.S. companies a credit of up to $850 for every NetSuite user that switches to either Microsoft Dynamics GP, Microsoft Dynamics NAV or Microsoft Dynamics SL, according to a Microsoft press release. The promotion ends June 25, 2010.
These certainly are intriguing times for NetSuite. At first glance, the company is ideally positioned in a high-growth market — SaaS. No doubt, some on-premise ERP customers are frustrated with traditional systems that take years to configure, deploy and optimize. So NetSuite could be a natural options for folks that want to tackle ERP in the cloud.
To speed the process, NetSuite recently introduced a new partner program that offers VARs 100 percent first-year commissions on SaaS customer engagements. That special offer was widely scene as NetSuite’s open letter to Microsoft partners. Also, NetSuite is preparing to host the SuiteCloud 2010 Partner Conference (April 13-16, San Francisco), which should attract ISVs (independent software vendors) and channel partners.
Still, NetSuite faces plenty of challenges. The company’s stock sits near a six-month low because recent growth and earnings guidance haven’t impressed Wall Street. Now, Microsoft is intensifying the pressure by offering financial credits to U.S. customers that jump from NetSuite to Microsoft Dynamics.
Will any customers take the bait? Hmmm… Frankly, The VAR Guy hasn’t heard from many customers that tried (then dumped) NetSuite. Our resident blogger sent an email to NetSuite, seeking comment about Microsoft’s NetSuite-centric competitive offer. If NetSuite has any thoughts to share, The VAR Guy will be sure to post them here.
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