The recent high-profile marketing campaign by NetSuite – “All Sage Lines Terminate Here at NetSuite” – has made a big splash in the business world. Find out why NetSuite chose to target Sage in particular, and the reasons why more and more businesses are choosing to switch to true cloud-based software.
— Zach Nelson (@ZachNelson) November 5, 2014
The not-so-subtle newspaper-ad campaign created by NetSuite soon turned into a spat between the two companies when NetSuite CEO, Zach Nelson, tweeted the graphic used in the campaign to newly appointed Sage CEO, Stephen Kelly who responded with a graphic of his own:
Sage has enjoyed its status as the on-premise solution of choice for UK businesses for a long time but its hesitance to embrace the cloud has meant that true cloud-based solutions such as NetSuite are becoming a more dominant force in the market.
Why target Sage?
In a recent interview with Cloud Computing Intelligence, Zach Nelson discussed why NetSuite targeted Sage in particular and why he feels that Sage is no longer suited to the modern business environment.
When asked what prompted the marketing campaign, he said –
“The campaign focuses on the challenge many business leaders face in moving core business systems from Sage’s client/server technology designed in the 1980s to a modern cloud architecture like NetSuite. The big challenge with their current business systems is that those systems were literally designed to prevent access from the outside world, while a modern business requires exactly the opposite in enabling customers to interact with their business suppliers anytime, anywhere on any device in the cloud.”
He also pointed out that the different Sage product lines – Sage 50, 100, 200, 500, and 1000 – are all different software packages with different code bases (and indeed the same labels indicate different technologies depending on where in the world you are.) The different versions are designed for different numbers of users and offer differing functionality. This means that if you reach these limits then you will need to migrate to the next level on the Sage family, which can be tricky.
In contrast, with NetSuite, all users are on the same version of the software, which is upgraded twice a year. This means that NetSuite customers don’t need to worry about version-lock or going through an end-of line process with their software as happened earlier in the year with Sage Line 100. The flexible nature of NetSuite means that new users and functionality can be added when required, or removed each year at your renewal anniversary (there are certain, very limited, “non-reversible” choices).
The benefits of switching to NetSuite
- Continue working anywhere, on any device – NetSuite is cloud-based which means you can continue working remotely from any device, provided you have an internet connection.
- Ability to scale up – NetSuite is able to grow with your business and handle any extra functionality or additional users you might need as your business expands.
- Seamless integration of business processes – Use a single unified business management solution to run all elements of your business – from financials to customer relationship management (CRM) to omni-channel commerce and project management.
- Real-time metrics – Improve overall business performance with real-time metrics and role-based dashboards.
But doesn’t Sage offer a cloud-based solution?
Sage has gradually been weaning itself onto the cloud and now offers “cloud-based” versions of its software. However, this is not what we would describe as “true cloud”. Sage has taken its legacy on-premise software and is hosting this on its servers and delivering it over the internet. It wasn’t built for the cloud, as NetSuite’s solution was.
So what’s next?
Going forward, NetSuite plans to target the UK market more heavily; during the CCI interview Zach commented –
“The UK is a key market for NetSuite. We already have a long-term commitment to the UK signaled by our growing customer base, our continuing strong financial results, and the recent acquisition of London-based cloud ecommerce company Venda and its stable of European brands including boohoo.com, Laura Ashley, and TK Maxx.”
NetSuite also commits to maintaining the UK as a key legislative market, ensuring that adhering to new regulatory requirements, such as the new VAT directive on digital services, are provided at no extra cost to those who need to adhere to them.
More than 500 companies like Hailo, Mimecast, Trunki, Siracom, YouGov, SLA Mobile, and Islabikes have already abandoned Sage for NetSuite. Perhaps it’s time for you to make the switch?
NoBlue is one of the UK’s leading providers of NetSuite’s cloud business solutions. If you’re currently using Sage and considering making the switch to NetSuite then get in touch and we’ll be able to answer any of your questions.
What are you thoughts on the battle between Sage and NetSuite? Does Sage still have a place in the market? Leave your comments in the box below.