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Oracle waves goodbye to NetSuite

Preps its own small biz suite

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Oracle has cancelled Netsuite's rights to resell its software, in advance of a widely-expected sales push to smaller businesses.

But Netsuite customers will be unaffected, Zach Nelson, chief executive of NetSuite, told The Register: "In the first week of July customers will turn on their machines to see a new logo but it is essentially the same product."

He added: "It's been a long and fairly fruitful relationship but Oracle is only five per cent of our sales now. We are putting more focus on our NetSuite product and brand now."

Netsuite flogged Oracle applications to companies below the sales radar of the database giant. The company is a so-called applications services provider which rents out for a monthly fee software for use over the Web. It aims to provide all the back office and customer relationship management software to run a medium-sized business The basic sales pitch is that the customer saves on upfront capital costs as it no longer has to buy software licences outright. Also it saves on sysadmin costs - no more messy installation and upkeep.

Oracle has described such online delivery of software services as the future of the industry. The vendor is expected to offer a version of its E-business Suite aimed at small and medium business in the US later this year.

Larry Ellison, Oracle founder, owns 50 per cent of NetSuite. ®

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