Senior VP, Corporate Communications
GLOBAL MICROSOFT RESELLERS JUMP TO NETSUITE ON-DEMAND MODEL
New Channel Offerings Move VARs to Fast-Growing NetSuite
San Mateo, Calif. — January 26, 2006 — NetSuite, Inc., the leader in on-demand business management software, today announced that a number of Microsoft resellers — from locations as diverse as Fleet, Hampshire (UK); Marlborough, Mass.; Baton Rouge, La.; Salt Lake City; to Beaverton, Ore. — representing products such as Great Plains, Navision and Solomon, have become NetSuite solution providers, reselling its award-winning on-demand applications. Additionally, NetSuite also announced discounts on internal system usage, free training and higher margins for qualified Microsoft resellers who need to add an on-demand offering to complement Microsoft's legacy client/server application offerings. For more information about the discount offerings and the NetSuite Channel Program, please go to www.netsuite.com/msftswitch.
Software as a service (SaaS) offerings are by far the fastest-growing segment of the business application market. JMP Securities estimates the on-demand application software market will grow from $1.6 billion in 2004 to $5.1 billion in 2009, representing 26 percent compound annual growth (CAGR). And of all on-demand market segments, Enterprise Resource Planning (ERP) is projected to have the most robust growth at 48 percent CAGR. In contrast, market analysts project traditional client/server applications' compound annual growth rate at six percent between 2004 and 2009.
NetSuite is the leader in on-demand ERP, CRM and Ecommerce, with a growth rate of over 100 percent per year. In contrast, Microsoft's business application offerings, based on a variety of non-integrated, client/server ERP and CRM applications, grew only six percent in its fiscal year 2005 with an operating loss of $210 million dollars (Source: Microsoft 10-K, June 30, 2005). While Microsoft is talking about building a next-generation integrated suite (originally called "Project Green"and now named "Dynamics"), and moving to an on-demand delivery model, there is little product to back up its assertions. With thousands of large and small customers worldwide, NetSuite is on the 11th version of its next-generation on-demand business suite.
NetSuite is also the only major on-demand service provider to enable resellers and integrators to build a business around next-generation SaaS offerings. NetSuite's Solution Provider Program is the only true "selling"channel in the SaaS market with benefits including higher software margins, recurring revenue and verticalization capabilities. And as part of this announcement, NetSuite is making it even more attractive by offering existing qualified Microsoft resellers the following:
- 35 percent margin
- 50 percent discount on NetSuite for internal use
- Free sales training for up to five people
The new NetSuite resellers announced today include:
Nolan Computers (www.nolancomputers.com):
"After eight years as a Great Plains reseller, we spent a long time reviewing our various options, including whether to continue reselling Great Plains, or move to SAP or other ERP options," said Tim Nolan, Managing Director of Nolan Computers, a well-known UK IT consultancy based in Fleet, Hampshire (UK) and also represented in the U.S. and Australia. "After a rigorous search, we identified NetSuite. As soon as we saw the product we were attracted to it — it was innovative, and ready from the get-go. With everything, including ERP, ecommerce and CRM, integrated into a hosted product that is highly customizable, NetSuite is the answer we were looking for."
Altico Advisors (www.alticoadvisors.com):
"Our founders have a couple decades of experience reselling Microsoft products, and we chose to add NetSuite as an additional practice area," said Marcia Doron, Director of Marketing for Altico Advisors, based in Marlborough, Mass. "We see the on-demand model as the future of software, and wanted to be a part of that and have it available for our prospects."
Premier Computing Technologies (www.premiercomputing.com):
"Having been in business since 1952 as an office equipment dealer, and having been a Great Plains reseller for 12 years, we began noticing a trend of people interested in hosted applications," said Dale Potter, president of Premier Computing Technologies, based in Salt Lake City. "We learned about NetSuite — a complete solution that doesn't compromise any of the necessary components — and saw it as a product ahead of its time. We don't take on a new product lightly, and chose to resell NetSuite because we feel it will be around for the long term."
Roux Business Systems, LLC (www.rouxbiz.com):
"NetSuite filled a gap in our business that Microsoft could not fill, and that was to have a fully integrated sales force automation and accounting product coupled with distribution capabilities and ecommerce," said Matt Hunt, co-founder of Roux Business Systems, based in Baton Rouge, La. "After seeing what the hurricanes did to Louisiana, many businesses here have been requesting hosted solutions so their data is safe in case something like that happens again."
VAR2 LLC (www.var2.com):
"The main reason we picked NetSuite was because it's the best in its class — a fully integrated business suite covering CRM/ecommerce/accounting offered in the software as a service (SaaS) form. SaaS is not just seen as the next big thing ... it's here, and it's real," said Rob Hausner, partner at VAR2 in Beaverton, Ore., and one of the oldest resellers in the Northwest. "For 20 years our roots have been with Microsoft Solomon. We are excited to be a part of this new model, which allows users to work from anywhere and at any time. Today's business is all about staying connected, and not just through email and text messages."
"I am excited to see Microsoft resellers adopt NetSuite on-demand software applications,"said Adam Ross, VP of Channel Sales at NetSuite. "These resellers will definitely add value to our fast-growing reseller program."