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NetSuite is entering the New Zealand market, inking a non-exclusiove reseller deal with service provider Fusion 5.
NetSuite's regional managing director, Chris Schafer, says the US-based provider of software as a service (SaaS) ERP and CRM suites had a choice of partnering to enter the market or building its own distribution channel. Fusion 5 was chosen as the company's partner because of its strength in business consulting, connections with other consulting firms, and the fact it operates out of multiple locations locally.
Chris Schafer (left) and Fusion 5's Nigel Smith
Schafer says Netsuite will target companies with over ten and under 400 employees.
"That's where New Zealand business is at," he says.
NetSuite listed in the US two years ago, he says, and has cash in the bank. It went profitable almost immediately.
Schafer says the recession has bveen a boost to providers of cloud platforms as companies face a choice of ongoing renewals and upgrades or taking a different path.
He says the company mostly sells to business executives, CEOs, CFOs, and MDs, who see multiple data silos reducing the ability of the organisation to deliver quality analytics and reporting.
IT remains heavily involved in the decision and the deployment, he says.
Schafer says according to analysts IDC and Gartner, on-demand EERP is growing at four times the rate of on premises deployments.
Fusion 5's Nigel Smith says the company saw a good fit between NetSuite and the New Zealand market and already has a prospect list in place.
Fusion 5 is also a reseller of Oracle's CRM on Demand, but Smith says he doesn't see a conflict between the two as it is easy to see which is most suitable to particular prospects.
Oracle CEO Larry Ellison was an early investor in NetSuite.
Schafer denies NetSuite is a latecomer to the local market, with others such as Saleforce.com having been active here for some time.
"Absolutely not. there couldn't be a more perfect time to come into the market," he says.
NetSuite already claims a number of local users, including Mobile Mentor and Campus Living. The company launched in ANZ in 2008.
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