NetSuite's alternative on-demand offering is aimed at "light" manufacturers like apparel and electronics companies, with NetSuite specifically citing the SAP Business ByDesign delay for its introduction.
Warren Wilson, an analyst at Ovum, said, "NetSuite has targeted SAP directly in an effort to capitalise on the recent, much-publicised announcement that SAP was slowing its roll-out of Business ByDesign, that was launched in September 2007, but today is used by only about 150 customers."
SAP delayed the wider availability of its on-demand offering when it found it was becoming too expensive to deliver it to customers. On-demand software sees firms effectively rent the software on a monthly basis whilst it is remotely delivered and managed by the provider
Wilson said the NetSuite for Manufacturers software could also be seen as a direct competitor to the Microsoft ERP platform that targets SMEs in the manufacturing sector.