China Martens, senior software analyst with The 451 Group, said via e-mail that this pricing level "looks a little on the expensive side when stacked up against the $499 a customer pays per month for the NetSuite product and the $99 per user monthly charge. As the SaaS model takes hold, customers are being a lot more cost-sensitive, particularly when it comes to add-ons."
"That said, if one or more OneWorld users can publicly share experiences where using the module has helped them quickly respond to and successfully resolve issues at far-flung subsidiaries, NetSuite could have struck upon a key differentiator for its on-demand software," she added.
While the module should be enticing to some buyers, it has certain limitations, according to Martens. "In terms of attracting new customers, we see the optional add-on module as particularly useful to mid-market companies with fairly new international operations, since OneWorld can't easily be applied to historical data unless you're already a NetSuite customer."
However, she echoed Wang in saying the timing of NetSuite's announcement is sound: "With both Microsoft and SAP poised to fully deliver their mid-market software-as-a-service (SaaS) apps, the more noise an established on-demand pure-play like NetSuite can make now, the better."
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