NetSuite Makes Recruiting Pitch For Sage Resellers

The move is the latest fallout from the sudden shutdown of MIS Group, Sage's biggest reseller, on July 6. The Dallas-based solution provider, reportedly deeply in debt, cited the recession and tight credit markets as the reasons behind its decision to cease all business operations.

Earlier this week Microsoft, whose Dynamics ERP and CRM applications compete head-to-head with Sage's products, made a pitch to Sage customers and partners "concerned with the stability of the Sage Software Inc. channel." Microsoft reiterated the deal it's offered since May to give owners of Sage's MAS 90 or MAS 200 applications a 50 percent discount on licensing and a rebate equal to 25 percent of suggested retail price (up to $25,000) if they switch to Microsoft Dynamics ERP applications. Those incentives are offered through Microsoft's channel partners.

This morning a Sage spokesman declined a request for an interview with an executive to respond to the Microsoft and NetSuite moves. The spokesman said Sage plans to communicate directly with its channel community early next week, detailing its efforts to make resellers more competitive, and provide education and training for partners.

In an announcement to be made today, NetSuite said it is also looking to recruit Sage channel partners, offering higher margins to help new partners build a NetSuite practice.

"We've had our sights on the Sage community for several months," said Craig West, NetSuite vice president of channel sales, in an interview, noting that the program had been in development prior to the MIS Group shutdown. "We think our message is very compelling."

West said NetSuite has been hearing from Sage partners who are concerned about that vendor's long-range product strategy and the speed at which it's developing Software-as-a-Service products. At Sage's partner conference in May, CTO Motasim Najeeb acknowledged that some of the company's products had "fallen behind the technology curve" and needed more research and development investment.

Solution providers that join NetSuite's channel program generally receive a 30 percent discount during the first year they resell NetSuite's on-demand applications and then work their way up discount tiers to as high as 50 percent, based on performance evaluations. But Sage resellers in the U.S. and U.K. that enlist with NetSuite through Sept. 30 are being offered 50 margin points for the first year they resell NetSuite services, West said.

"It will make it easier for them to recoup costs," West said. After the first year, the margin will be determined by the solution provider's performance.

West said NetSuite is also offering a Sage-specific bootcamp to provide training for Sage channel partners looking to add NetSuite software to their lineup. The company is also planning a Webinar for Sage partners to learn more about NetSuite.

West argued that adding NetSuite software to a solution provider's offerings is easier than adding on-premise applications from Microsoft or other vendors because resellers don't have to learn to work with new underlying platform software or middleware.