NetSuite's Channel Structure, Partner Ecosystem Evolving With Its Products

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NetSuite, which is projecting a $1 billion run rate, drives roughly 40 percent of sales through more than 300 implementation partners.

The program changes were partially motivated by an evolving base of technology that's encouraging partners to target "micro-verticals" by creating highly specialized industry solutions, West told CRN.

The custom solution capabilities made possible by NetSuite's platform approach are changing the makeup of the company's channel.

"We're really seeing the notion of NetSuite as the platform that's really driving non-traditional VARs to our program," West said.

Some of those VARs previously were independent software vendors in the NetSuite ecosystem, selling through the SuiteApps marketplace.

Metafile, a 35-year-old information management software company based in Rochester, Minn., is such a vendor -- a NetSuite ISV partner now making the transition to join the vendor's implementation channel.

One Metafile product, MetaViewer, brought the company into the NetSuite ecosystem a couple of years ago as a third-party add-on vendor, said Nick Sprau, the company's vice president of marketing and sales.

A second product, focused on nonprofits, called ResultsPlus, is motivating the change to the reseller model.

"From a business standpoint, as we were contemplating the next generation of ResultsPlus, we saw that in order to completely revamp that whole platform was going to take such an internal resource drain that we started looking at alternatives," Sprau said.

The company needed to recast the aging product suite in a modern, hosted environment, and the business case for doing that internally didn't make much sense.

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