NetSuite is making a savvy bet by opening a dedicated cloud ERP Business Suite Development Center in Brno, Czech Republic for several reasons. According to today’s announcement the company will build the center out to employ one hundred people in the next 12 to 18 months and the company already has a good foothold in the region. Local partners include Perficio Consulting, KIT Digital and ESET, all local companies with multi-national reach.
What’s important about this announcement is that it brings cloud computing to a relatively underserved market with great potential. Like China and India, Eastern Europe is growing, has a large number of knowledge workers and industries that need cloud solutions. In addition, many emerging regions may not have the infrastructure to support conventional computing and their businesses, while successful, may not have the capital required for building a conventional, in-house data center.
As a result these regions are fertile ground for cloud computing companies because they can deliver significant functionality with more favorable economics. But these regions must still be carefully selected for because the jobs brought by cloud companies are still technical and some measure of business and technology expertise is necessary for both parties to be successful.
Consequently NetSuite selected Brno, the Czech Republic’s second-largest city, which has become a key destination for high-tech companies seeking qualified talent and a friendly, inviting atmosphere in Central Europe.
I hear the beer is pretty good too.
(Cross-posted @ Beagle Research, LLC.)