Software vendor seeks resellers to bolster presence in wholesale distribution and services markets

NetSuite intends to double its UK partner base in an attempt to strengthen its vertical market presence.

The software vendor currently has about 26 channel partners in the UK. It claimed that end-user demand for direct vendor contact prevented it from maintaining a 100 per cent channel strategy, but NetSuite told CRN that it would like to expand its presence in verticals such as wholesale distribution and services.

Martin Painter, director of international channels at the vendor, said that the UK is its strongest European market.

“The strategy is to develop the UK market, although not to the exclusion of other European markets,” he said. “We are not looking for thousands of partners, but we are looking to at least double numbers in the UK from 26.”

Painter explained that the SME market is a lucrative area for it, but admitted that without adding channel partners it would be impossible for NetSuite to reach all prospective end-users.

“We would never get to all of the prospective SMEs just using a direct model. We are at about 30 per cent channel now. Partners are an extension of our strategy,” he said.

NetSuite also claimed that because its software is delivered as a service, the revenue earned by its VARs remains relatively constant because end-users either continue with the same service year-after-year or add extra modules, thereby increasing VARs’ revenue generation.

Tim Nolan, managing director of NetSuite channel partner Nolan Computers, told CRN: “There are enough sales to go around and software as a service is in demand. I have no reason to doubt NetSuite’s claims of partner benefits because we expect a minimum revenue in year two similar to that earned in year one. It could even increase if customers take on additional modules.”