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NetSuite's Sweet Channel Deal

In an effort to lure on-premises ERP solutions providers to its cloud-based offerings, NetSuite Inc. upped the ante in the industry for channel margins on first-year license subscriptions.

• By Scott Bekker
• April 01, 2010

In an effort to lure on-premises ERP solutions providers to its cloud-based offerings, NetSuite Inc. upped the ante in the industry for channel margins on first-year license subscriptions.

The deal: 100 percent for the reseller in the first year for closing a two-year deal. The limited-time offer is called NetSuite SP100 and it also includes 10 percent renewal margins, sales and technical training and ongoing marketing support.

In a statement accompanying the early March announcement, NetSuite CEO Zach Nelson was unequivocal about which companies' resellers he was going after.

"With this new program, NetSuite takes dead aim at the partner networks established by competitors including Microsoft, Sage and SAP," Nelson said.

While Microsoft doesn't yet have cloud-based ERP offerings, Redmond's Dynamics CRM margins are 12 percent initially and 6 percent recurring.