NetSuite doubles efforts in Europe
IT Europa
10/13/04

300-STRONG small business applications ASP NetSuite has vowed to step up its commitment to Europe with the pledge it will increase its UK staff from 14 to 40 by June 2005 and begin partner recruitment in mainland Europe early next year.

Following the collapse of its first foray into the UK through a JV with BT, the US-based vendor—which is majority-owned by Oracle frontman Larry Ellison—re-launched in 2003. 25 UK partners have since been reeled in but NetSuite admits it's time for a more warlike approach. 'A big part of the UK staff increase will be in marketing where we've not been that aggressive so far,' concedes Dean Mansfield, VP EMEA at NetSuite. A recent move in the US to target rival Intuit's customer base will be repeated in the UK later this year, while Mansfield says further 'aggressive' campaigns will ensue in 2005.

NetSuite also revealed its expansion plans  are on course. Germany should get a local version by Q1 2005 and a GAAP-compliant version by Q4, while France, Italy and the Netherlands will be close behind. Partners will be recruited within this timetable, with NetSuite plumping for a similar channel model to the UK: 'Like the UK, we'll initially go 100pc indirect,' explains Mansfield. 'And again, we're after vertically-focused consultancies. It's an integrated CRM⁄ERP suite so it's a difficult sale.'

Mansfield is unfazed by speculation Oracle will now make a grab for the SMB hosted business applications space after the duo wound up a five-year marketing relationship this summer: 'Unlike in the US, I never allowed the UK team to use the Oracle name as it gives the image of a large bill—the same would be true if Oracle came out with an SMB product.' http:⁄⁄www.netsuite.com

Our analysis
Until now, NetSuite's UK drive has focused on hooking in niche partners, with the UK and Europe only drawing in 10pc of total sales. But with the imminent launch of version 10 and an upcoming UK marketing injection, NetSuite now says it has the clout to hook in some much bigger partners.