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CRM Software Vendor NetSuite Targets SAP Customers Facing 'End-of-Life Scenarios' with New Incentive Program
September 17, 2009
 
By Patrick Barnard, Group Managing Editor, TMCnet
In April, CRM software vendor NetSuite announced a new version of NetSuite (News - Alert) OneWorld for SAP customers, enabling them to use NetSuite "at the divisional level," while retaining their current SAP on-premise systems at the corporate level. Through the integration of the two platforms, made possible through NetSuite’s “SuiteCloud Connect for SAP,” large SAP (News - Alert) legacy accounts can use NetSuite's on-demand application to manage business operations and roll up division-level transaction and summary data.

At the time, Zach Nelson (News - Alert), CEO of NetSuite, said that NetSuite OneWorld for SAP “enables large companies to keep their investment in legacy business applications, while deploying a Web-based business application suite that reduces costs.” NetSuite knows nobody's going to rip out their expensive enterprise installations, but they also know they're not getting everything they want from them, either.

Today, NetSuite announced a new incentive program, the “NetSuite Crossroads Initiative,” as part of its ongoing effort to lure more SAP customers over to its NetSuite OneWorld cloud-based offering. The new program targets SAP customers facing “end-of-life scenarios” with their SAP R/3 software. SAP has announced that maintenance for R/3 V4.6 will end as of March 2010; and maintenance for SAP R/3 4.7 will be extended, but at a higher cost. These changes will affect approximately 70 percent of SAP users who now face the difficult decision of whether to pay increased costs for maintenance, or upgrade to SAP ERP 6.0.

One advantage for SAP customers that migrate over to NetSuite OneWorld is that they can greatly reduce both their equipment and carbon footprints. In addition they will never again having to pay for maintenance or perform another SAP upgrade themselves. At the same time they gain “anytime, anywhere” access to cutting-edge business management capabilities across international regions, divisions and subsidiaries using only an Internet connection and a Web browser.

Supported by integration partners CastIron, Pervasive and Boomi, the new NetSuite Crossroads Initiative program includes NetSuite products, partner services and a special sales promotion.
 
As part of the program, NetSuite is offering an enhanced version of its Business ByNetSuite program for SAP customers, initially launched in November 2008. This version of Business ByNetSuite offers SAP R/3 customers a total migration package in year one of their subscription, including all license fees, implementation and support, equal to customers’ annual maintenance cost with SAP. Thereafter, as long as they remain with NetSuite, the program provides customers with a fixed 50 percent off NetSuite’s then-current list price for an annual subscription. The enhanced Business ByNetSuite program is valid worldwide through the fourth quarter of 2009.

In addition, new customers making the transition will have access to NetSuite Professional Services and its global partner network, which stands ready to offer expertise in all aspects of SAP migration and integration. What’s more, customers will have access to the “Crossroads Conversion Kit,” which offers SAP migration strategies, customer success stories and other resources. The kit includes information on comparative costs and implementation times for SaaS (News - Alert) versus conventional, perpetual-license installations such as SAP.
 

Patrick Barnard is a contributing writer for TMCnet. To read more of Patrick’s articles, please visit his columnist page.

Edited by Michael Dinan

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