NetSuite targets SAP users with deep discounts

NetSuite has today announced a cut-price promotion for existing customers of SAP in an effort to boost its market share and capitalise on the German software maker's problems in the smaller business market.

The announcement of the SAP switching deal comes two weeks after it launched a similar deal to tempt Salesforce.com customers to switch.

The Business ByNetSuite scheme, a play on the name of SAP's troubled Business ByDesign smaller business SaaS product, involves offering existing SAP R/3 customers up to 50 per cent off their current support agreement cost if they switch to NetSuite's hosted CRM product and other business applications.

As with last month's Salesforce.com offer, NetSuite has set up a SAP migration package of tools and up to 100 hours of professional services support time to help switchers migrate.

"For divisions of large companies, not only do corporate mandates to use SAP drive up cost, they can also impair the productivity of those smaller business units," said NetSuite chief executive Zach Nelson.

"Even at our list price, we will save SAP customers at the divisional level enormous amounts of money and they will gain access to a modern, on-demand business suite specifically designed to meet their needs. This offer is great for NetSuite, great for SAP customers, but not so great for SAP."

NetSuite is due to publish its third quarter financials later this evening. The last quarter saw the company turn in a 43 per cent rise in turnover year-on-year.