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:
The new NetSuite resellers announced today include:
Nolan Computers (www.nolancomputers.com):
Altico Advisors (www.alticoadvisors.com):
Premier Computing Technologies (www.premiercomputing.com):
Roux Business Systems, LLC (www.rouxbiz.com):
VAR2 LLC (www.var2.com):
"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."