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NetSuite's Nelson slams 'fake' Cloud

15th Nov 2010
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NetSuite CEO Zach Nelson has accused Microsoft of building a “fake Cloud” in its desperation to cling on to mid-market users.
According to Nelson the battleground for Cloud-based business applications has moved into the mid-market area where Microsoft’s Great Plains software family traditionally thrived.
“Historically the prospects that I encounter are replacing QuickBooks; this year, almost everyone I met was replacing Microsoft Dynamics Great Plains,” said Nelson at a recent New York event. “I think we are reaching the tipping point where mid-sized companies are throwing out the stone age solutions from Microsoft and other providers of pre-internet era software providers.
“Microsoft is desperately trying to fight this. It is offering the Fake Cloud – hosted versions of their pre-internet client server Great Plains. The only way to make a Microsoft application more expensive and less functional is to have someone else host it for you. This approach to hosting client server applications is exactly the approach that failed around the year 2000. The Fake Cloud approach by Microsoft is a loser for Microsoft customers and partners.”
Nelson also dismissed the Cloud credentials of Sage and SAP. “In general the model we’ve seen with Sage is we seldom see them in new business but we do see them in replacing them,” he said. “And that’s what we’re beginning to see with Great Plains, we’re replacing them. That’s an obvious shift – Microsoft is very like Sage in the number of code bases they have. Microsoft is still suffering from the same lack of innovation that Sage is.
“As for SAP Business ByDesign, I still don’t really believe it is in production. I think it’s still a 0.5 release. I think their hand was forced to announce it whenever they did back in July. They may be showing it but I don’t think they’re selling it. We’ve maybe seen it a handful of times, but we haven’t lost to it. I don’t really think you can buy it today. I think we’ll see it in actual production next year.”
In its latest quarterly statement Netsuite reported Q3 earnings of $0.04 on revenues of $49.7m versus consensus of $48.54 million, just beating analysts’ expectations.
Zach Nelson is one of the Cloud Titans speaking at the Business Cloud Summit 2010 on 30th November at London’s Hammersmith Novotel.

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
15th Nov 2010 18:12

Meet up at Business Cloud Summit

If you're thinking of coming to this year's Business Cloud Summit at the Hammersmith Novotel on Tuesday 30 November, do take advantage of our free ticket offer (use this link to ensure you don't have to pay the full price - NB there's a limit on the numbers given away, so they'll be dished out on a first come, first served basis).

At 3:30pm, there's a session with the IT Faculty's Richard Anning, Richard Messik and Rex Harrison, Chief Operating Officer (formerly CFO) of i-nexus. At 5:30pm, there will be a "networking drinks" session. You may want to ask Zach about his Microsoft comments, but the event also provides an opportunity to meet up with other AccountingWEB Cloud enthusiasts. I will be there, so keep an eye out for me, probabaly somewhere within close proximity of the bar.

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