Cloud computing is changing the way multinational enterprises and global services integrators (GSIs) relate to one another. Because cloud computing offers a more customer-friendly platform for crucial business processes, one which aligns with the C-suite's goals of cost containment and innovative new processes, enterprises at the highest level are shifting their demand.
Existing, on-premise IT infrastructure creates version lock—forcing companies to stay on old software because upgrades to support new business processes will break existing customizations. These restrictions are no longer acceptable with a clear-cut alternative, so enterprises have made it clear that they will not swallow the tremendous capital expenditures necessary to roll out new processes and take full advantage of business process outsourcing opportunities.
This means significant but exciting changes for GSIs. Because investments in NetSuite are operational expenditures and not capital expenditures, customers can typically sign off and begin projects much more quickly than a conventional, on-premise opportunity. So NetSuite offers GSIs higher sales velocity as well as long-term revenue potential.
Cloud solutions give GSIs the opportunity to completely focus their attention on being consultative, collaborative and service-oriented, rather than become distracted by the details of delivering and maintaining commodity IT hardware. All of the truly value-added services remain, from business advisory to scoping, implementation, customization, and analysis.
In fact, a full palette of value-added services are supported by NetSuite's highly extensible platform, which includes the SuiteTalk, SuiteFlow and SuiteBundler development tools. Because NetSuite development tools are standards-based, experienced developers need little time to familiarize themselves with the cloud environment. The value of these services compares favorably over time with the “big bang” expenditures in a typical on-premise deal, and deliver faster and more satisfying results for the client.
Independent recommendations will continue to favor the cloud as well, because analysts recognize that cloud solutions are so closely aligned with the demands of business clients. They are looking for transparency which affords them unlimited access to global markets for both labor and customers, they want rapid time-to-market, and they want to avoid capital outlays.
New processes, new infrastructure and new technology, all in an operational expenditure model, make NetSuite too compelling an opportunity for enterprise and GSIs to ignore.
-Charles Simmons, Sr. Strategic Alliance Director - BPO/BPaaS at NetSuite
Posted on Mon, January 14, 2013