Software distributor, NetReturn, goes under
- 20 August, 2009 16:57
- Comments 7
NetReturn, the former lead Australian distributor of NetSuite software, is in the process of closing down.
NetReturn CEO, Adrian Wong, said the distie sold back its distribution rights for NetSuite products on June 25 and had no other lines of business.
According to an industry source, the vast majority of NetReturn’s staff have been let go with a small percentage moving across to NetSuite.
“NetReturn had to evolve into a services company, which they were doing, but the owners ran out of patience,” the source said.
“If they [NetReturn] had continued on, it would’ve been a successful business in four or five years because to do the services they’ve got to compete against NetSuite and they could do that because NetSuite has most of its services in Singapore.”
ARN understands NetSuite decided to take on a more direct approach with sales, which heavily impacted on NetReturn’s business.
“NetSuite were prepared to undercut the deals that NetReturn could do. NetReturn had to get their heads around the fact that they were going to become a services company rather than a sales one.
“It some ways it was just that NetSuite recognised Australia was a market that needed to be pushed a little bit,” ARN was told.
Wong would not comment on whether the company would have been successful, but confirmed about 25 per cent of NetReturn’s staff would move across to NetSuite.
“The people who have moved across have been predominately in our professional services and account management area.”
He disputed claims NetSuite’s increased Australian presence harmed NetReturn and said the reverse was actually true.
“NetReturn and NetSuite were quite strong partners and we helped each other out here in the market so I don’t think there’s any suggestion they made anything more difficult for us at all,” he said.
Wong was appointed to the position in early May after Andrew Birch left the company to pursue other avenues.
Wong previously spent five years in the company as its head of professional services.
“I’m in the process of looking for new opportunities for myself.”
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Comments
Bernard Harper
NetReturn Consulting Unaffected
The eBusiness consultancy NetReturn Consulting Pty Ltd is not in any way affiliated with the NetReturn Pty Ltd mentioned in this article.
NetReturn Consulting Pty Ltd is a separate entity and continues to provide eBusiness solutions to the Australian market.
Bernard Harper
Managing Director
NetReturn Consulting Pty Ltd
Anonymous
now isnt that confusing
I feel for NetReturn Consulting in getting confused with NetReturn NetSuite Distributor. You know people will mix you up.
Regarding the separation. I think the largest reseller of NetSuite separated this time last year - skyytek or skytech I believe. Seems a common trend around the aug/sept time frame.
Does not look good for netsuite which ever way you slice it up.
salesorder.com
Every 'cloud' has a silver lining ;-)
Ok more not so sweet news from NetSuite,
The good news is salesorder.com are offering partners and consultants in A/NZ new opportunities to work with them helping small businesses deploy their SaaS ERP solution down under.
For more information get in touch through the 'Contact Us' section at www.salesorder.com and ask for Nick. You can be assured of a warm welcome, straight talk and a real opportunity to work with a global team of honest, thoughtful and talented people.
Anonymous
NetSuite poaches their partners
I personally witnessed NetSuite's inside sales people poach customer accounts brought to their company by their partners. When reseller partners find themselves competing against their own business partner publishers, they have obvsiously made a fatal mistake and will ultimately suffer. What happened to to NetReturn is a real shame.
Anonymous
Poor journalism
Pretty poor journalism here - As far as I know and according to all announcements, NetReturn DID NOT "go under" (implying it went broke). NetReturn's investors chose to sell the company to NetSuite for an agreed amount in return for NetReturn's wealth of customers and contracts. NetSuite chose not to take all NetReturn staff with them.
Anonymous
You must work for NetSuite
Why does "go under" imply going broke? It could just mean it sunk. Or it is no longer on the business playing field. The previous poster has to work for the investors or Netsuite to really worry about a choice of word like that. Are you seriously saying you take the investors and vendors "announcements" as gospel??? And Bill Clinton never inhaled...
Nearly all the NetReturn staff lose their jobs (75 per cent) and the company disappears. Doesn't matter what you call it - going under, closing down, shutting up shop - it's all the same. The company itself is gone and lots of people are out of work.
You got to ask yourself, if NetReturn was profitable and there was a "wealth of contracts and customers" wouldn't NetSuite need those staff to service those contracts? Or was it already taking away that business and pushing the investors to sell because in the long run the distie couldn't compete with a bigger vendor?
Who cares what you call it - NetReturn is now six feet under. Let's just hope the staff get other work.
Seriously - the previous poster should have a think about his/her priorities.
salesorder.com
A helping hand.........
To all of the folks who worked at NetReturn and the customers who are disturbed by this unfortunate news, the team at salesorder.com would like to help out where we can.
If you are an ex-employee with Sales or consulting skills then please get in touch as there may be something we can do together.
If you're a customer and you are thinking about switching or buying an on demand ERP then please get in touch with us at www.salesorder.com.
Everyone can be assured of personal and sympathetic attention.
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