NetSuite: 2011 Is Really The Year of VARs in the Cloud
Rewind to April 2010. At the time, NetSuite executives proclaimed 2010 was the year of the channel working in the cloud. Fast forward to the present, and NetSuite VP of Channel Sales Craig West wants asserts that 2011 is “really, really” the year of channel partners — VARs and integrators — working in the cloud. West shares his observations in a TalkinCloud FastChat Video (left).
“I do feel like  was a year wherein the ball moved…regarding midmarket partner adds and larger organizations…acting a lot more quickly,” said West. “That said, I think 2011 is the year of the VAR in the cloud… Really. This is the year that’s really the year. Last year was a predictor of the adoption, this year really being execution on the adoption.”
Why does West sound so upbeat? NetSuite in March 2010 launched the so-called SP100 Program. It offers VARs 100 percent of first-year subscription revenue as a commission. Off camera last week, West hinted that NetSuite is considering some enhancements to that partner effort.
In the meantime, NetSuite seems to be chuggin’ right along. The company’s stock, part of the Talkin’ Cloud Stock Index, is trading near a 52-week high. For its 3Q ended Sept. 30, 2010, revenues grew 19 percent to $49.7 million compated to Q3 2009. NetSuite is expected to announce Q4 2010 and full-year results on February 3, 2010.
In the meantime, it sounds like NetSuite plans to stick to the script — positioning itself as a recurring revenue opportunity vs. traditional on-premise ERP systems like Microsoft Dymanics (though Microsoft has a Dynamics cloud strategy of its own.