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.”