Brandon, CA -- (ReleaseWire) -- 07/21/2014 -- After a history of losses and having never turned a profit, rumors continue to swirl around the possibility of a sale of QuickBooks competitor NetSuite have been floating for the past couple of years with the number of customers a mere 16,000 to date.
An increasing number of small business customers have been converting from NetSuite to QuickBooks as of late, as the cost of NetSuite subscriptions have consistently risen while QuickBooks’ similar services are being offered at much lower prices. A simple comparison of price points reveals an enormous discrepancy between the two companies; $39.95 per month for 5-users on QuickBooks versus upwards of $15,000 per year for 10-users on NetSuite, as stated in a recent article by Forbes.
NetSuite is a leading provider of cloud-based accounting software whose revenue has grown from $17.7 million in 2004 to $414 million in 2013. Even with those numbers, NetSuite has still been unable to make the company profitable and has a history of losses. They even reported a $70.4 million calendar year net loss for 2013, despite its rapidly accelerating revenue growth.
Even as a leading provider of cloud-based accounting software, the company is less capable than large enterprises of performing the costly, complex and time-consuming integration of multiple point products from one or more vendors.
“As a result, medium-sized businesses can frequently derive greater benefits from a comprehensive business suite,” states CIO, John Rocha. “NetSuite seems to be abandoning its smaller business customers and focusing on the larger of the small business customers who are more profitable.”
Since 1994, QuickBooks has established itself as the leading financial management solution for small businesses, consumers and accounting professionals with their growing number of customers estimated at over 4.5 million, and sales reaching $4.2 billion in 2013 alone.
The CIO of QuickbooksRepairPro.com, John Rocha states, “We are seeing an increasing trend in migrations from NetSuite to QuickBooks in the US and Canada. The main reason for the migrations is the cost factor. A secondary reason is that NetSuite has too many features for what a smaller business needs. The small business owner is primarily concerned with cutting costs – an offering like QuickBooks Online is close to perfect.”
Can the company contain the already dwindling customer base or compete with the efficiency and affordability of QuickBooks? Or will the company be forced to break apart or sell what’s left of their company? E-Tech expands on the subject about what may be next for NetSuite for 2014 on their website.
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