NetSuite CEO Says Deltek Is Struggling

This came across my desk and while Dynamics GP is not typically the solution we see for government contractors, it is interesting to see NetSuite take a stab at competition.  While we are seeing Microsoft Dynamics NAV and Microsoft Dynamics SL chosen over Deltek, we do not often see Netsuite in evaluations for government contractor financials.  The complexity of cost pools for government services and product businesses as well as the government reporting requirements have not played into NetSuite’s strengths.  We still see good momentum across all products and expect to have a strong fiscal year.

Here’s what came across my desk and  some supporting evidence that GP is doing quite well:

Before the Dynamics fans rise in a roar, what NetSuite CEO Zach Nelson said during yesterday’s earnings webcast was that Dynamics GP is disappearing as a competitor. He’d discussed that alleged trend before, but this time he put it in context. The words themselves are worth the jarring impact “The one prediction I will repeat is the continuing demise of Microsoft Dynamics Great Plains.” The elaboration came in answering an analyst question about which products NetSuite runs into. Nelson said that in the first half of 2010, GP was an important competitor, but that the product disappeared as a challenger for new business and has become a replacement target. The fact that Nelson spent more time trash-talking GP than SAP suggests he and his company smell blood. And I’ll simply repeat his description of the GP channel. “Their partners are leaving the sinking ship.” Hey, I’m just the messenger. I will note that I have publicly said over the last three years that GP was the most vulnerable of the Dynamics products because its more generic than Dynamics, less international than Dynamics NAV and AX and less sophisticated than AX and it’s more subject to pressure from QuickBooks Enterprise Solutions. While I would not say there’s no future for Dynamics GP, I’d say there’s little future for anyone who wants to be a new GP reseller. However, Nelson generously shared his barbs. He said the company plans on focusing on government services where “Deltek is struggling” and in quoting SAP as saying that Business By Design is a category killer he continued that “The category they are killing is SAPs core business.”

Here’s what Microsoft is saying:

Quote from November Press Release:

“We have seen unprecedented momentum for Microsoft Dynamics GP 2010, having recently added more new customers in one quarter than any previous quarter in the history of the solution,” said Crispin Read, general manager, Microsoft Dynamics ERP

Product Launch News:

GP 2010 was launched in the first half of 2010 to sell out crowds.  Microsoft led 25 event across the US with over 4000 registered customers and standing room only crowds.  Our partners were right there along with us hosting over 50 of their own events

SP 1 was released in September and we continue to innovate with GP R2 which is expected to release in Q2 of this calendar year.

GP has tens of thousands of customers.  A vibrant VAR and ISV ecosystem.  Proven industry functionality that goes deep in many key verticals

Comments (1)

  1. Steven Tomlinson says:

    About time, speaking from experience, Deltek Costpoint is the worst software I have had to work with in 20 years. It breaks every day. Is a drag on productivity. We spend more time babysitting this software than servicing our government contracts.

Skip to main content