Microsoft Counters NetSuite with New Incentive to Switch Customers to Microsoft Dynamics ERP

In the continuing battle with NetSuite for midsize ERP customers, Microsoft has announced a new offer aimed at wooing NetSuite customers in the US - up to $850 for every NetSuite user that switches to Microsoft Dynamics GP, NAV, or SL. 

"To assume that a single deployment model for ERP will work for every business is unrealistic," said Crispin Read, general manager of Microsoft Dynamics ERP. "By having a choice of owning an on-premise solution, subscribing to a hosted solution or combining the two at any point and time, companies have the option to make wise decisions that satisfy their specific business requirements."

Last week, NetSuite took aim at the Microsoft Dynamics ERP sales channel by announcing a new partner incentive program that offers 100% of first year subscription sales.  NetSuite is aggressively pushing on the heels of their recent 2009 Q4 earnings in which company officials presented record sales and earnings figures.

In its announcement of the new program, Microsoft touted the flexibility of its own offerings while criticizing NetSuite's SaaS-only approach to ERP. 

Microsoft also emphasized its existing online services for ERP like Connect Service and Payment Service.  Two other services, Site Service for creating web front-ends for ERP capabilities, as well as Commerce Service, are still slated for the first half of 2010.

As with NetSuite's offer last week, the upfront discounts should provide partners and customers additional savings that can be put toward implementation and professional services costs. 

Microsoft highlighted two recent NetSuite defectors - Archipelago Learning and