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NETSUITE'S NELSON PROMOTES VAR ROLE

Zach NelsonWith much of a panel at this week’s Goldman Sachs Technology Conference dismissing the roles VARs could play with SaaS-based products, NetSuite CEO Zach Nelson voiced support for the importance of resellers. Nelson’s comments, available via webcast (and if the panel’s was, I didn’t find it), were that the channel can be cost effective.
“The more you touch these customers, the more they buy. I don’t think it’s [channel distribution] any more expensive and it expands the market we touch.” Nelson, who pictured himself as the lone panel member defending the channel, noted that some historical reseller roles are vanishing. ”The future of services is not shocking the server back to life,” he said. “We shock the server back to life.” Nelson described the role of third parties as providing domain expertise to expand NetSuite’s capabilities. “Where do services VARs make this money? It’s applying NetSuite to specific business problems?” he said. As an example, he said NetSuite doesn’t have the capabilities to serve John Deere dealerships, and yet there are 10,000 tractor dealerships in the country that can be served by other organizations. Nelson continued that such specialization would enable VARs to charge much more for their iteration of NetSuite than they could for a generic version. The statements are in line with the philosophy NetSuite expressed when it signed Baker Tilly Virchow Kraus to carry NetSuite for specialized markets.
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