BPOS fake cloud says Netsuite chief

Unless an application is designed from scratch to be a web application then it’s fake, according to Zach Nelson, CEO of Netsuite. His recent interview in CRN is worth reading as he gives his view on cloud and cloud channel opportunity.

Here are four things which caught my attention, the first is obviously his selling point but it is a good point in that many ISVs and vendors simply add a front end to a hosted product and call it SaaS or “cloud”:

  1. If the application is not web-native it’s not going to give you any of the benefits of the cloud. You’re not going to get any of this cost reduction, customisation migration or anytime, anywhere access because you are still using this funky intermediary technology to access that hosted application.
  2. Nelson’s #1 opportunity for channel partners – They’re going to have to take their knowledge of a [business] domain – I implement this product in this business, suddenly I know a bit about this business. So why don’t I go to another business that looks like that? So that’s number one – become experts in a business domain.
  3. And his #2 opportunity for channel partners – because the application is web-native they don’t have to limit themselves to geography. If they are expert in [servicing] wholesalers and distributors they can do it as easily for a company in the US as in Australia because all the implementation is remote.
  4. And this very interesting partner revenue model – we have something in our contract that says that every year you have to sell something new to maintain that revenue stream. We don’t cut you off cold turkey if you don’t do it, but it starts to taper if you’re not adding new revenue to the recurring model. You can build a lifestyle business, but not like an insurance company. We still want you out there adding value to customers’ businesses.

Whatever you think of the hype it’s still worth reading the interview if you’re curious about the cloud and partners and how Netsuite makes it work for them.

Do you think BPOS is fake cloud?

What are the top two opportunities for partners in cloud that you see?

Are you serving companies globally already through your cloud strategy?

My social spaces and places: http://xeesm.com/walter

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About Walter Adamson

Call me (AU) +61 403 346 632 Follow me @adamson My social web: http://xeeme.com/walter Linked: http://linkedin.com/in/adamson
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