• Netsuite goes Native with Subscription and Billing

     

    Six months ago I posted about an interesting piece of news – that NetSuite had inked a preferred partnership agreement with subscription and billing provider Zuora. The news was interesting because rival subscription and billing provider Aria was already…

  • NetSuite–Live on the iPad

     

    One of the justifications proponents of a move to the cloud use is that of workers needing mobile access to applications. It’s always be easier to enable access for devices across multiple platforms when the application is served from…

  • NetSuite Announces SuiteSocial, Takes on Salesforce Chatter.

     

    The big news Over the past year I’ve been on something of a crusade to get NetSuite thinking about and acting upon social inside the enterprise. Every time I run into CEO and President Zach Nelson, my standard question…

  • NetSuite – Sales Success, Keeping the Ecosystem Happy and a Hint of Future Moves

     

    I’m in Sydney en route to a CloudCamp in Canberra and taking in a day of the inaugural NetSuite APAC SuiteCloud event. Over lunch with NetSuite CEO Zach Nelson, APAC MD Chris Schafer and a bunch of customers and…

  • FinancialForce Nabs NetSuite Customer

     

    Normally I’m not overly interested in the press releases that come from vendors regularly boasting about a customer they’ve stolen from their competitors, however one I received today is kind of interesting. I’ve written before about both NetSuite and…

  • NetSuite, Zuora and Aria. Choice (and the Odd Sour Grape)

     

    News yesterday that NetSuite and Zuora “announced a partnership to jointly develop and offer combined solutions to companies that need to meter, price and bill for subscription- and usage-based products.” Particularly interesting given that only six months ago it…

  • Business ByDesign meet NetSuite, NetSuite meet Business ByDesign

     

    I wanted to refrain a little while from commenting on SAP’s announcement of the long-awaited (and oft-maligned) Business ByDesign on-demand product (as an aside, is it just me who feels a little finny calling a SAP product SaaS?). Zoli…

  • It’s All About the Suite – NetSuite Enters the Box

     

    Today Box.net is at the NetSuite SuiteCloud conference (see disclosure re my attendance at SuiteCloud here) opening the box (bad pun intended) on their integration with NetSuite. It’s an integration that Box have built using NetSuite’s SuiteCloud development platform, and it allows NetSuite customers to access, manage, share, and collaborate on all their content online, within the NetSuite applications.

    Recently Brian Sommer posted a really interesting discussion on who will win the SaaS wars – Best of Breeds or Integrated Suite. He took the perspective that the Suites will win due to their inherent ability to work together out of the box. It’s a similar discussion to that which I’ve talked about previously regarding The Small Business Web versus the approach taken by Intuit’s partner Platform (but see disclosure) – basically the thinking goes that integrations are hard, no matter how well they’re facilitated – out of the box apps that work together and feel like a seamless suite are the route best taken. It’s a perspective I agree with – while it’s easy to have a purist’s discussion about potential with well APId applications, I always look at the reality on the ground for businesses – and suite are incredibly attractive at that end of the technical spectrum.

    Anyway, in terms of this particular integration, NetSuite customer using Box can:

    • Make relevant content – such as sales collateral, demo videos, invoices, contracts, and purchase orders – visible and accessible when viewing a customer record
    • Keep employees across departments in sync with what files have been shared with which customers by assigning Box folders to specific customer records. Users can also upload files directly into Box when viewing a customer record in NetSuite
    • Incorporate collaboration and workflow into NetSuite with the ability to create shared folders outside of a customer record and invite colleagues, partners, and contractors to review, update, and add their own files
    • Leverage Box’s integrated third-party services within NetSuite, including the ability to email or fax files, e-sign contracts, and edit documents online

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    Box.net for NetSuite will be available on www.suiteapp.com before the end of the month as part of the Box Enterprise edition. Yet another value proposition that sees the suite providers justify their somewhat myopic perspective….

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  • And Who Said SaaS Wasn’t Customizable? – NetSuite Rewrites the Rules and Embraces Design Thinking in the process

     

    I spend a lot of time talking to organizations about moving to SaaS an often I hear their concerns around the apparent lack of flexibility that SaaS apps give them. In the broader context this argument speaks to the…

  • NetSuite Brings VARs Some More Love

     

    NetSuite is this morning announcing a new reseller program that is aimed at converting VARs currently dealing with on-premise products, and fearful of the revenue implications of a move to cloud applications, to come on board as a NetSuite reseller. As background, NetSuite currently has around 200 partner companies that are receiving margin throughout the renewal life of the end customers. NetSuite has found however that traditional resellers are struggling to decide how best to integrate cloud offerings into their existing practices – part of this struggle is caused by their real fears over revenue impacts moving from a large license fee model to a smaller recurring revenue one.

    The new program will mean that, for qualified new customer transactions of at least two years, NetSuite “SP100” partners get the entire year-one software subscription revenue, they will then also get 10% margin on all renewals, to give them a recurring revenue stream. The existing benefits that resellers get will remain for VARs under the new model – they’ll still get deal support, sales engineering support etc.

    The idea of this program is to help traditional resellers, who have business models built on lucrative revenue streams from on-premise deployments, to move themselves to a recurring revenue model – the 100 will be positive for revenue flows for VARs in the initial years when they feel the most impact from the move from on-premise to cloud.

    The following chart gives a comparison between an on-premise reseller, one who uses the existing NetSuite modal and one who embraces the new SP100 model – note that the existing channel model gives resellers a 50% margin on license and a 30% margin on maintenance. You’ll notice that after a few years resellers are actually worse of under this model than under the SP100 model – as such it is very much a tool to aid in the transition for VARs rather an ongoing change of model.

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    NetSuite’s stated goal through this program is to attract new VARs as Craig West from NetSuite pointed out in my briefing, existing resellers who have already bit the bullet and moved to recurring revenue models have already suffered the pain of the shift – they’re less likely to come on board with the program than new resellers. Resellers will be able to chose which commission model they adopt with each customer deal, thereby giving the opportunity to tailor their own revenue flows.

    So why now? Well NetSuite is adamant that 2010 is the year that the midmarket channel embraces the cloud – they’re dedicating much of their 2010 SuiteCloud Conference to building knowledge within the partner community.

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