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NetSuite, Skyytek sever ties

NetSuite and one of its top reseller partners are on the outs. Skyytek Worldwide and NetSuite are ending their relationship as of Sept. 30, according to a “joint public statement” issued late Friday by NetSuite.

“The development is the outcome of a decision by NetSuite and Skyytek to take our respective businesses in different directions,” according to the statement.

The move is somewhat shocking given that Miami-based Skyytek was one of NetSuite’s top solution providers and an oft-used partner reference.   NetSuite even named Skyytek its business partner of the year for 2005 and in September 2006, NetSuite boasted that Skyytek had sold more than $1 million in new NetSuite licenses so far that year.

San Mateo, Calif.-based NetSuite is forging a path in hosted ERP and as a software-as-a-service pioneer. As such, it’s faced its share of channel angst as VARs weigh where they fit in a world of vendor-hosted applications.

NetSuite has said that partners hitting a certain sales level get 30% margins per year on those deals as long as the partner remains the partner of record in that account. But several partners have said the vendor has backslid on those promises.

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