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NETSUITE SMALL CUSTOMERS RAPIDLY DECLINING

Zach NelsonOnly 5 percent of NetSuite's customers pay more than $10,000 a year for their products. And that's a long way from a company whose average customer was spending $400 per year when CEO Zach Nelson started his job in January 2003. Nelson gave that breakdown this week at the Deutsche Bank Securities Technology Conference.

 

He noted that the current product has been priced so it's virtually impossible for NetSuite to close a deal at less than $10,000 a year, "We are too expensive for much of the low-end of the market and we priced it to be too expensive," he said, noting the low end of the customer base has churned more quickly than the high end. And the smaller deals probably don't cost much less. "It probably takes as long to sell a 10-person company as it does a 1,000-person company," Nelson said.
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