NetSuite, the cloud-based ERP provider, had a net loss of $7.7 million for its Q1 2012 results but total revenue grew 30 percent to $69.3 million and the results beat Wall Street’s expectations. NetSuite (NYSE: N), a member of our Talkin’ Cloud Stocks Index, also said VARs such as BCG Systems, NEO3, MIG & Co. and TAG are embracing a “tidal wave of demand” from customers seeking NetSuite’s cloud applications.
In a prepared statement — separate from NetSuite’s earnings announcement — NetSuite VP of Channel Sales Craig West said:
“Our new partners are recognizing the decline in on-premise opportunities, and the shrinking margins associated with them, and at the same time are hearing tremendous demand for innovative cloud solutions from trusted names. We all agree that the path to growth and success lies in the cloud, and are pleased that the value and robustness of the NetSuite Solution Provider Program can attract and retain successful partners with a vested interest in maintaining strong customer relationships for decades to come.”
NetSuite claims customers are migrating from on-premise solutions like Sage and Microsoft Dynamics GP to NetSuite’s cloud-based ERP system. In some cases that’s certainly true, but Microsoft also has indicated that its own Dynamics business has been growing at a healthy pace — though much of the growth talk usually involves Dynamics CRM.
Shares in NetSuite fell 1 percent in after-hours trading on April 26, 2012 — even though NetSuite’s quarterly results were double what analysts had been expecting, according to All Things D. Despite the small after-hours decline, NetSuite shares are still near their 52-week high.
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NetSuite Cloud ERP Revenue: Lifted By VARs, Channel Partners http://www.talkincloud.com/netsuite-cloud-erp-revenue-lifted-by-vars-channel-partners/