Is It NetSuite or Net$uite?

Software as a service has caught Wall Street’s attention. One prime example: NetSuite has raised the anticipated share price for its initial public offering, according to a document filed with the SEC. Why should managed service providers care? There are two quick answers to that question.

First, NetSuite promotes tools that allow MSPs to focus on “micro verticals.” Instead of writing a hosted accounting program, for instance, you can write a hosted accounting program that only targets dentist offices. If you’re already serving a vertical market niche, NetSuite can help to further exploit that niche with targeted accounting applications.

Second, NetSuite is accelerating the shift from on-site server applications to hosted applications, where recurring monthly fees are the norm.

As Jeff Kaplan from Think IT Services points out, on-demand services have serious momentum heading into 2008. And I firmly believe the line between managed services and SaaS will continue to blur.