NetSuite and CompUSA: A Landmark Deal
The deal is the first time a SaaS giant has partnered with a mass retailer. It's a major milestone for the SaaS industry, a sign not only of the acceptance of SaaS in an Internet-savvy world, but also of the great opportunity ahead for solution providers. What's exciting about the deal for partners that have built significant businesses selling, customizing and servicing the NetSuite offering is CompUSA's willingness to partner with them. CompUSA is taking a much different tack than rival Best Buy for Business, which is for the most part relying on its own Geek Squad team. That not only represents a huge sales, general and administrative burden to Best Buy, but also ties the retail behemoth to a unit that does not have the technical muscle to deliver robust solutions.
The CompUSA team, meanwhile, has already forged an aggressive partnership with services-on-demand pioneer OnForce. That OnForce deal has resulted in thousands of service providers acting as CompUSA technicians. Some consultants have started providing services for OnForce and CompUSA on their own and have built fast-growing solution provider businesses. OnForce President Kevin Gilroy, for his part, stresses that information technology is now the spinal cord for small and medium businesses, rather than an appendage. That means these small and midsize businesses are no longer able to survive with just a spreadsheet and a word processor. A baker, for example, that supplies a local business is taking orders, payments and communicating with clients via an on-demand supply chain.
There is a technological renaissance going on in small and midsize businesses, and solution providers are at the center of it. What NetSuite and CompUSA must remember is just how important it is to cultivate and nurture those local partnerships. Those companies that partner with local solution providers will be able to cost-effectively deliver robust multivendor solutions to small and midsize businesses. Those that don't will fall flat on their faces.
What do you think of the NetSuite-CompUSA deal? Let me know at (781) 839-1221 or via e-mail at [email protected].