The offer introduced Wednesday is aimed at midmarket companies and divisions of large corporations looking to cut costs in the economic slowdown. Under the deal, Salesforce customers would swap their software-as-a-service vendor's sales force automation product for NetSuite's customer relationship management service called CRM+.
NetSuite's RenewForce program guarantees a 50% discount on companies' current Salesforce implementation. The price cut applies to a comparable license for NetSuite's service, including customer support and implementation services.
"In this environment, reducing costs and increasing productivity are key, and applications like NetSuite CRM+ that include -- but go well beyond --basic SFA functionally enable companies to do a lot more with a lot less," Zach Nelson, chief executive of NetSuite, said in a statement.
Salesforce declined to comment.
NetSuite says its CRM application offers more capabilities than just SFA services. Those added features include creation of estimates or quotes, sales-order generation, management of multiple quotas and forecasts, support for cross-selling and up-selling, commission management, integrated e-mail marketing, and preconfigured dashboards for business intelligence.
Competition among SaaS vendors is heating up as companies look to the services to cut costs and simplify their application environments by leaving the maintenance and upgrade to the vendors. Integration with in-house business systems, however, remains a challenge and sometimes negates the cost savings and other benefits. CIOs warn that buyers have to take into account the role the SaaS vendor will play in integration and how closely it's willing to work with IT staff.