Microsoft offers monetary incentives for every user that switches to Microsoft’s ERP

by: Nichole Gunn March 30, 2010

All's fair in love, war and the software market - where Microsoft is offering incentives to its channel partners to lure NetSuite users.

With a number of customers switching from Microsoft’s Great Plains to NetSuite, the pressure is on, and Microsoft is definitely feeling the heat. NetSuite officials tell us that today's businesses "want more". "They're moving to the modern, integrated, web-native and cloud-based simplicity of NetSuite.

First, a bit of irony: NetSuite has successfully shifted quite a few on-premises SAP customers to NetSuite's ERP SaaS offerings. But now, Microsoft is stepping in to say not all customers want SaaS. To prove its point, Microsoft is offering its channel partners credit of up to $850 for every NetSuite user that switches to Microsoft Dynamics GP, Microsoft Dynamics NAV or Microsoft Dynamics SL, according to a Microsoft press release. The promotion ends June 25, 2010. Many consider Microsoft's monetary incentives as "quite generous". But how does NetSuite feel about such a "generous" offer?

NetSuite management reacted with very little concern, according to TMCNet. Microsoft's bid to attract NetSuite customers was described by NetSuite’s CEO Zach Nelson as “the last gasp of a dinosaur trying to protect its Stone Age software products.” Microsoft's offer certainly may have caught the NetSuiter's off-guard, however, they were more tickled by the offer than interested.

So what does this say about Microsoft? Will their incentive program succeed? Or will their "stone age software products" go extinct? Experts say that it is impossible to judge the success or failure of Microsoft's incentive program based on so little evidence. So we are left with the question; will customers bite the Microsoft bait?