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July 24, 2009

NetSuite Aims Offer at Sage Partners

By David Sims, TMCnet Contributing Editor

NetSuite has announced a new program offering current Sage partners in the U.S. and U.K. the opportunity to add NetSuite (News - Alert) products to their business practice at a revenue share of 50 percent for the first twelve months.

The fine print: The 50 percent revenue share offer will apply to all new NetSuite subscriptions secured by the partner on one, two or three-year subscriptions. The new program for Sage channel partners is available through September 30 to all current Sage channel partners in good standing, based on acceptance into the NetSuite Solution Provider Program.

In a concentrated bid to attract Sage customers, NetSuite officials have announced that Sage channel partners will receive "dedicated training customized for Sage implementation experts" on NetSuite’s accounting / Enterprise Resource Planning, Customer Relationship Management and e-commerce products.

NetSuite officials say they expect this program will find "a warm reception" in a Sage channel partner community "wracked with fear, uncertainty and doubt about the future of on-premise applications and the ability of Sage to lead them to the new world of cloud computing."

In fact, NetSuite officials say, pointing up the differences between their offerings and Sage's, demand for on-premise software "is diminishing across the board... Sage has yet to offer their channel partners a software as a service application which can be recommended to clients, forcing some partners to look elsewhere."

Aric Shelko, president, Accession Technology, a value-added reseller of Sage products and a new NetSuite provider based in Ridgewood, New Jersey says in the future "we expect to see an increase in companies moving toward the Software as a Service model.”

Research from "Gartner (News - Alert) Market Trends: Software as a Service, Worldwide, 2008-2013" cited by NetSuite officials finds that Software as a Service is forecast to have a 19.4 percent compound annual growth rate through 2013, "more than triple the total market CAGR of 5.2 percent.

In May TMC reported that NetSuite targeted SAP (News - Alert), citing "new research from Macro 4, a UK-based global software company," claiming to find "a high degree of risk and complexity involved in most major SAP upgrades," including "the bulk of historical data clogging up their systems... the time that upgrades consume, the complexity involved and the staffing resources involved.”

NetSuite officials also failed to pass up the opportunity to remind you of the July 2008 report by Forrester (News - Alert) Research finding the tipping point toward SaaS adoption is "the upgrade and application management requirements of on-premise" products, such as... oh, to pick a random example... SAP.

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Patrick Barnard

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