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MICROSOFT PULLS A NETSUITE ON NETSUITE
NetSuite is known for its aggressive marketing, which I once termed the whack-a-mole approach, and for deals to get end users to switch to its products. But this week Microsoft took a leaf from the SaaS vendor's marketing book and is offering $850 per user to customers who would like to back away from NetSuite.
The idea came from the number of customers and VARs who approach Microsoft about dropping NetSuite, according to Guy Weismantel, director of Dynamics ERP product marketing. My first thought was that could be expensive, but Weismantel continued that most users expressing regrets are in the early stages of NetSuite installations. Besides, I reasoned, companies walk away from SAP R3 installations, so why not? The offer applies to those interested in Dynamics GP, NAV or SL, but the move must be made by June 25. Microsoft pictures its option as a hybrid of packaged software and hosted applications. CEO NetSuite Zach Nelson sees Microsoft’s use of hosting as a 1998 approach to the cloud. "This is Microsoft’s admission of NetSuite's taking share," Nelson said. He also said that in terms of innovating Dynamics. "The primary innovation Microsoft has brought to the [four Dynamics] products is giving them all the same name." Weismantel said Microsoft is simply responding to demand. But I must say I don't remember Microsoft mentioning a competitor this prominently in a press release and executives hardly mention anyone besides SAP and Oracle when discussing the enemy.