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Partner Programs

As reported by Accounting Technology in a February 22, 2008 article titled "NetSuite In The Land of Channel Conflict", the volume and pitch of the reseller communities complaints with NetSuite are clearly reaching a peak. Accounting Technology Editor-in-Chief Bob Scott reports that there are some very strong comments from the NetSuite channel, including claims that the NetSuite direct sales force is unethical and in competition with the NetSuite reseller community and partner channel. When asked about the conflict issue, NetSuite's largest volume reseller and partner Ray Tetlow, CEO of, commented

“Channel conflict does exist and it is expected from a direct sales organization such as NetSuite. That we can live with. Where it crosses the line is when the customer wishes are not respected and artificial barriers concerning the rules of engagement are put into place. This prevents and enforces the customer, despite their wishes, to purchase their licenses from one vendor and implement with another vendor, obviously creating a conflict of interest. It's time NetSuite overhauled this philosophy when dealing with complex ERP systems."

This statement is not exactly a glowing endorsement which one would expect from the most successful partner. NetSuite has incurred frequent turnover of its channel management executives and long held a reputation as a less than friendly channel partner. Unless the company changes its underlying channel strategy and culture, it will fail to adequately reach the SMB (small and midsize) business market.

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