CRM solutions provider NetSuite recently launched a new incentive program targeting SAP customers facing “end-of-life” scenarios with their SAP R/3 software.

As NetSuite (News - Alert) points out in a press release, competitor SAP recently 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. This leaves a majority of SAP’s (News - Alert) customers with a tough decision: whether to pay increased costs for maintenance or upgrade to SAP ERP 6.0.

NetSuite is looking to capitalize on this opportunity to get more SAP customers to switch to its cloud-based CRM solutions -- including its NetSuite OneWorld for SAP offering -- a cloud-based business management suite designed specifically for SAP customers. Thus it has launched the “NetSuite Crossroads Initiative,” an incentive program to get SAP customers to make the transition to cloud-based software.

As part of the program, NetSuite is offering an enhanced version of its popular Business ByNetSuite program for SAP customers, initially launched in November 2008. This enhanced 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 offer is valid through the fourth quarter of 2009.

 

In addition NetSuite is offering expertise to help SAP customers make the transition to NetSuite’s cloud-based CRM solutions. NetSuite Professional Services and its global partner network stand ready to offer expertise in all aspects of SAP migration and integration. Key integration partners participating in the program include Cast Iron Systems (which offers a prepackaged integration solution enabling NetSuite customers to migrate from or integrate with SAP in just days); Pervasive Software (News - Alert) (which delivers a flexible, reliable and affordable platform for rapid one-time migration or ongoing bi-directional batch, real-time and synchronized data integration); and Boomi AtomSphere (which offers a SaaS (News - Alert) integration solution that enables migration and bi-directional integration of SAP data to NetSuite with no coding required).

Companies that sign up for the program will also receive the “Crossroads Conversion Kit,” offering SAP migration strategies, customer success stories and other resources. The kit includes information on comparative costs and implementation times for SaaS versus conventional, perpetual-license installations such as SAP. It also answers the questions on most SAP customers' minds.

 

"Amazingly, the forced migration of SAP R/3 users merely brings SAP customers to SAP ERP 6.0, yet another Stone Age, on-premise product,” said Zach Nelson (News - Alert), NetSuite CEO, in the release. “The migration to NetSuite is not only easier than migrating to the SAP product, but less expensive and most importantly brings customers to the Internet Age.”

In April NetSuite announced a new version of NetSuite OneWorld allowing integration with SAP’s platform, thus enabling enterprises to use NetSuite applications "at the divisional level" while at the same time retaining their current SAP on-premise systems at the corporate level. In so doing, NetSuite sought to exploit one of the gaps in SAP's strategy, the lack of a cost-effective product for smaller sites, by providing a way to link the hub and spokes via the new SuiteCloud Connect for SAP.