NetSuite (N), the cloud ERP company, delivered strong Q2 2013 earnings on July 25. CEO Zachary Nelson praised the company's fast growing channel partner program, which helped to lift quarterly revenues above $100 million for the first time.

Teaser alert: NetSuite is moving up Talkin' Cloud's list of the world's Top 100 Cloud Services Providers. Our third-annual Talkin' Cloud 100 list will debut July 30, 2013.

What's the secret to NetSuite's success? Increasingly, the answer involves channel partners.

During an earnings call, Nelson said: "Year-over-year, revenue grew 35%, average selling price grew by more than 20%, our deferred revenue balance was up 39% and sales through our channel partners grew more than 70%." 

"This blows away previous growth rates we have seen in our channel business," added Nelson, "and is driven by great partners...who last year began to move their practices from dying Sage and Microsoft products, and this year are seeing amazing growth with NetSuite." Nelson also pointed to a growing relationship with Capgemini.

During the quarter, NetSuite added 330 new customers. And the company's channel partner program has attracted integrators across North America, EMEA (Europe, Middle East, Aftica) and Asia, he indicated.

NetSuite slammed Microsoft (MSFT), SAP and SAGE multiple times during the earnings call, claiming to be taking market share from those rivals. But I realize there are two sides to every story. While NetSuite may be winning customer converts, plenty of evidence suggests that Microsoft and SAP each have true cloud momentum, and SAGE continues to adjust its business for the cloud.

Netlson said NetSuite will continue to invesst in channel sales, which is led by Channel Chief Craig West.