NetSuite slams SAP Business ByDesign

Once upon a time, SAP hurdled into the Global 2000 with their software by allowing customization. The allowance of customizations led SAP to amass a portfolio of thousands of products, and the end result now forces customers to use what SAP deems as the best practice. However, after roughly 30 years, SAP has thousands of various tools in their disposal to deem what is best practice. So far, SAP has managed to do a good job by implementing solutions that are user friendly, one example being core financials.

Zach Nelson, NetSuite CEO, didn’t hold any emotion back in his email assault on SAP. He wrote, “It seems that SAP is bringing their old weaknesses (namely weak customization and static locked down business processes) to the SMB market. It appears that they are delivering the worst of all worlds – a non-customizable solution with weak native verticalization. As a result, customers are forced to use what SAP defines as best practice, not the way the customer feels is best. A fixed bid consulting offering defined by SAP is horribly ‘channel-unfriendly.’ The channel is expert in defining services for customers, so again, it seems like SAP is forcing an unnecessary change in the channel’s business model.”

With today’s dynamic business environment, companies are no longer interested in paying for endless consulting activities, and are looking for a fast and cheap solution for their operations. Both NetSuite and SAP allow for easy innovation of core processes. SAP’s lean towards verticalizing their software is just emerging, but the SAP solutions are still broadly complete to fulfill core functions. Despite there differences, SAP still provides another solution that can help partners develop multiple revenue streams, and if this is the case, why would VARs make a big deal about it?

Whether an organization decides to implement SAP or NetSuite software, in the end, the customer is king.

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