NetSuite is going to disperse "a counterfeit cloud" of Microsft

Zach Nelson, the CEO of NetSuite, enough clearly let know that Microsoft is a competitor of day of his company as NetSuite is going to expand the presence.

The vendor brought together community of the clients who purchased ERP from NetSuite recently. RightNow passed to OneWorld suite as it was made by Knowledge Universe, SolarWinds and others. Though in the third quarter NetSuite showed force, there are concerns concerning future revenue. The point is that NetSuite has more potential clients, than it can service now.

During a teleconference, NetSuite designated points, important for it, and all of them - the competition to Microsoft. Nelson says that RightNow replaced Microsoft Dynamics Great Plains with NetSuite. He also noted Chefs Toolbox as one more victory of NetSuite over Microsoft.

"Leaving of RightNow and Chefs Toolbox from Microsoft Dynamics GP is what we often observe these days. Recently I was present at annual planning of perspectives on the future, at New York. Historically, planning was devoted to QuickBooks replacement. This year, however, it was another since almost all whom I met replaced Microsoft Dynamics Great Plains. I think, we reach critical point where clients - medium business, throw out software solutions of the Stone Age from Microsoft and other suppliers now "eras to - Internet ERP-providing" and pass to clouds" - Nelson told.

Of course, Microsoft desperately tries to fight against this migration. In attempt to respond to requirements of low cost and high performance of cloud solutions, Microsoft offers what Nelson calls "a counterfeit cloud". Microsoft tries to convince clients, to use the posted online versions of their client-server systems as Great Plains and Dynamics. Actually, Chefs Toolbox used a counterfeit configuration of a cloud of Microsoft. Experience of Chefs Toolbox proved my point of view: the only way to make business applications of Microsoft more expensive and less functional - that someone another placed it for you. And, of course, approach to placement in a cloud of the old client-server applications is what did not work well approximately in 2000, the head of NetSuite says.

Nelson added that Sage can seldom see in new business, Business ByDesign from SAP also, yet did not appear. Nevertheless, the analyst of JMP Securities Patrick Walravens considers that SAP allows NetSuite to rise. SAP advances Business ByDesign, and will expose ERP on demand on a review to IT buyers.

Though some investors can consider the entry of SAP on this market as negative for NetSuite probably it will affect positively. The companies estimating SAP Business ByDesign need something for comparison purposes - and exactly here NetSuite can receive a huge number of potential clients. One more proof is in what is told in the book by Mark Benioff - in the best afternoon in the history of generation of salesforce.com there was a day when Siebel Systems provided Siebel OnDemand.

Microsoft is the largest target for NetSuite, in any case, so far SAP will not increase pace. According to Nelson, Microsoft is very similar to Sage, on number of writing of bases which have the companies in the section of the general software. Thus, she begins to suffer from the same lack of innovations, as Sage, Nelson told.

As well as the majority of comments of vendors, it is worth adopting these statements from doubt shares. However foolish opinions usually reveal the purposes of the companies at the moment. And for NetSuite this purpose is business of Microsoft Dynamics Great Plains, at least, so far the company does not see presence of SAP at this part of the market.