NetFlex also contains a feature that enables partners to clone an application that they can then resell.

NetSuite's announcement came just one day after stalwart SAP unwrapped a program in which partners are building vertical applications specifically tailored for SMBs, such as packages that target automotive, pharmaceutical, and retail industries in various regions of the world.

And while it's natural to compare NetSuite to rival Salesforce.com, particularly with Salesforce.com's AppExchange  program that provides add-ons to let customers enhance the service, Nelson said "we'd rather take an SAP-like approach."

Still, most IT shops electing a hosted service rather than a packaged application will be faced with choosing between NetSuite, Salesforce.com, or other competitors, including Salesnet.

Denis Pombriant, founder of Beagle Research, pointed out that the competition between NetSuite's NetFlex and Salesforce.com's AppExchange benefits both companies in that "you don't really have a market unless you have competitors."