The solution provider executive said his company embraced NetSuite because Microsoft simply didn't have a clear vision on cloud computing/SaaS ERP solutions. "We couldn't get any clear answers," he said. The NetSuite business is fundamentally a stronger, faster growing and more stable business than the Microsoft ERP business, said the executive.
"Ultimately we have to make our clients happy with solutions that help them solve their business problems," he said. "NetSuite is doing more in that area now. With the SaaS NetSuite model, they come out with enhancements twice a year. These are material things. They are making real improvements that help streamline people's businesses. ... Microsoft is still [using] an old model where improvements come out every 18 months to two years. And a lot of times, it is just ways to tie in other Microsoft products like a SharePoint-integration play. That is not really enhancing the Dynamics ERP systems because you are dragging in other products."
Essentially, the solution provider executive said, there is a fundamental difference between how NetSuite views ERP versus Microsoft.
"When you get down to the economics, NetSuite has to deliver a great ERP/CRM system to be successful," he said. "Microsoft can make money pulling through Office and SQL server licenses with Dynamics. They like Dynamics because it pulls through the rest of the stack. It helps lock in the stack. I prefer to work with somebody really focused on the ERP/CRM product."
The solution provider executive said ultimately the NetSuite recurring revenue model is a much more stable business to be in than the Microsoft Dynamics ERP business. "NetSuite is an engine that just keeps going and going," he said. "It is a nice, steady flow of work and recurring revenue."
NetSuite's Nelson, for his part, said he has seen NetSuite competitors like Microsoft become weaker as NetSuite has grown its channel footprint. NetSuite's channel business in fact was up 70 percent in the most recent quarter and up more than 40 percent over the last year.
"Microsoft basically has missed every shift they promised on their cloud ERP products," said Nelson. "Meanwhile, NetSuite just keeps getting stronger and stronger. Part of this is cloud ERP apps are incredibly hard to build. It is pretty amazing that, while we accelerated our growth, we have seen the competition going away."
PUBLISHED FEB. 5, 2014