David RichardsThe move will allow Net Return to market its suite of online CRM and accounting solutions into the SMB market via more than 500,000 MYOB customers, of which 50,000 are classified as Premium MYOB customers.
Said Kiely: “This is a strategic channel initiative that allows us to move from a direct-sell model to a new-sell model via the MYOB network. Currently we are digesting the opportunity that is before us, however we do see a massive upside as business gets used to broadband and online applications.”
Net Return was established in 2002, after merging the operations of GadFly Online and Ion Global Australia. The core Net Return platform is built on Oracle database structure and is specifically designed to allow SMB organisations to manage their accounting and CRM operations online, as opposed to having to install desktop software. The backend of the Net Return operation is managed by Telstra.
MYOB Chief Executive Officer, Craig Winkler said: “We’re excited to forge this relationship, as we have complementary offerings and great opportunities together. In partnership we will deliver an outstanding scalable mid-market solution for fast growing Australasian businesses.”
Net Return CEO, Mason Little, added: “We believe that there is a lot to gain for both companies from this relationship. MYOB is investing in the future of integrated hosted applications, a market led by NetSuite. For Net Return this alliance will take NetSuite to a whole new level in Australasia.” Net Return has a rapidly growing customer base in Australia and New Zealand. The company forecasts revenue of more than A$7million for the year ending June 30, 2005, and is expected to become profitable in the 2006 financial year. MYOB’s investment is A$7million for 35 percent of the equity in Net Return and has an option to acquire the remaining equity in either 2007 or 2008.
MYOB CEO, Craig Winkler continued: “Through this partnership we can provide an excellent solution for businesses challenged by multiple branches, a desire for integrated applications including eCommerce and for any mid-sized business that wants to focus on their business, not their IT infrastructure.”
NetSuite competes strongly against mid-market systems such as Microsoft Great Plains, SAP Business One and Sage AccPac. In a recent report, the Yankee Group did a complete costing comparison of a 20-user site, comparing a NetSuite implementation versus a Sage ERP and CRM system. Over the five year analysis period Yankee reported that NetSuite delivered a TCO which was less than half of the Sage cost – saving A$318 a month per user over five years.
Image: Phil Kiely is the former MD of Oracle and founder of Net Return.