With Kenandy and Infor joining the emerging battle for the Cloud ERP market, the veteran in the space, NetSuite, has been setting out its services resource planning stall with some bold claims for the professional services automation (PSA) sector.
According to the SPI Research 2011 Professional Services Maturity Benchmark Report, NetSuite owns 20% of the market share, while the closest competitor has only 12%. NetSuite argues that Wall Street analysts cite key competitors such as Deltek as actively losing market share to NetSuite's Cloud-based professional services solutions. Deltek recently was downgraded by Barclays Capital Equity Research which noted:
“After several quarters of disappointing results, it is clear that Deltek is losing share to SAAS vendor NetSuite as small and mid mid-sized professional service firms increasingly opt for SAAS-based solutions over legacy on-premise systems. While Deltek is making the right strategic moves by selling more subscription-based and term license deals, we believe the company is likely to continue losing share.”
Barclays added:
“SaaS-based ERP competitor NetSuite has been increasingly targeting the small/mid-sized service based ERP market with the acquisition of two direct competitors to Deltek - OpenAir in June 2008 and QuickArrow in July 2009. These acquisitions have proven to be successful vertical extensions to the professional service industries. NetSuite bookings growth has been accelerating, reaching 30.5% in 2QFY11, up steadily from 12.5% in 3QFY10, partly driven by traction in the five target industry verticals.”
NetSuite CEO Zach Nelson said:
“With SRP, NetSuite is providing the Services Industry with the automation that MRP brought to the manufacturing sector in the Nineties. Services companies now can manage their resources, projects, bidding and billing with the same efficiency and control as companies building and distributing products.”
