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NetSuite Australian Customers Fine with Offshore Data Centers
October 15, 2010
By Susan J. Campbell, TMCnet Contributing Editor

How important is the destination of your data when moving it to the cloud? Do you want the provider to be onshore or is an offshore option appropriate as long as all other criteria are satisfied?

This is a question likely posed to NetSuite (News - Alert) as they target customers all over the world to use their data centers in the United States. According to a recent Delimiter report, NetSuite’s chief executive officer believes the company’s Australian customer base is not phased by the fact that NetSuite data centers are hosted in the United States.

Why is this issue at the forefront for NetSuite? For one, company execs were recently in Sydney talking about the impact of the National Broadband Network (News - Alert). Second, a number of larger Australian organizations have publicly and privately commended in several years that large cloud computing providers such as, Microsoft, NetSuite, Amazon and Google (News - Alert) do not have data centers in Australia.

For those operating in the financial and public sectors, it can be an issue of a lack of control or security of their data if it is moving offshore. NetSuite offers customers space in a data center on the west coast of the United States and is in the process of developing a disaster recovery center on the east coast.

NetSuite execs argue that they have not seen their location as an issue for Australian customers. The company supports some 600 customers in Australia and New Zealand and claims it is the largest cloud-based enterprise resource planning software provider in the country.

What may be more important to focus on is NetSuite isn’t concerned about perceptions as much as it is about understanding the needs of companies and meeting them with robust data center practices. Companies recognize the value NetSuite offers in its ability to do backup and recovery and more and they deliver this service much more efficiently and effectively than customers can do on their own.

Does this mean that NetSuite will never consider a data center in Australia? The CEO is quick to acknowledge that such a move is certainly under consideration as the potential for a regional data center in Australia is very strong. In fact, NetSuite foresees expanding data centers around the world, especially in the fast-growing Asian market.

A key for accelerating that expansion to Australia would be the completion of the NBN project as it would change the experience for NetSuite’s customers, making it an attractive option for NetSuite.

Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan’s articles, please visit her columnist page.

Edited by Chris DiMarco

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