NetSuite

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NetSuite Inc.
Type Public (NYSEN)
Industry Computer software
Founded California (1998)
Headquarters San Mateo, California, U.S.
Key people Zachary (Zach) Nelson (CEO)
Evan Goldberg (Chairman / CTO)
Lawrence (Larry) J. Ellison Stakeholder
Services Web-based business management software
Revenue Increase US$414.5 million (2013)[1]
Operating income Decrease (US$60.7) million (2013)[1]
Net income Decrease (US$70.4) million (2013)[1]
Employees 2,550 (March 2014)[2]

NetSuite Inc. is a United States software company based in San Mateo, California that sells a group of software services used to manage a business's operations and customer relations. Customers access these services over the internet paying a periodic subscription fee. NetSuite's services are primarily aimed at small to medium-sized business.

History & Background[edit]

NetSuite was founded in 1998 by Evan Goldberg as NetLedger, web-hosted accounting software. NetLedger was later renamed to Oracle Small Business Suite and finally NetSuite.[3] Goldberg is current chairman and chief technology officer.[2]

NetSuite became a publicly traded company after its initial public offering (IPO) of 6.2 million shares on the New York Stock Exchange in December 2007.[4] Though NetSuite has shown a 149% increase in revenue in the five year period from 2009 to 2014 [5] it has incurred annual operating losses since inception.[2]

NetSuite had 2,550 employees as of March 31, 2014 a 31% increase over March 31, 2013 when it had 1,953. One quarter of its employees are based in its Philippines call center. NetSuite has additional offices in Denver, Las Vegas, Austin, Chicago, Atlanta, New York, Boston, Canada, the United Kingdom, Spain, the Czech Republic, Japan, Hong Kong, Singapore, Australia and Uruguay.[2]

Acquisitions[edit]

  • OpenAir - (2008) Web based timesheets and expense reports.[6]
  • Retail Anywhere - (2013) Retail e-commerce software.[7]
  • TribeHR - (2013) Human Resource software for small to medium sized businesses.[8]
  • Venda - (2014) Retail e-commerce software.[9]
  • eBizNET solutions - (2014) Advanced Warehouse Management

Ties to Larry Ellison and Oracle Corp.[edit]

In 1998 Evan Goldberg received approximately $125 million in initial financial backing from Larry Ellison,[10] founder and chief executive officer of Oracle Corp through Ellison's venture capital entity Tako Ventures.[11] Other initial investors were StarVest Partners[12] ADP and UBS PaineWebber.[13]

Ellison and family members own approximately 48.1% of NetSuite's common stock as of March 31, 2014. The firm's 10-Q filing for March 31, 2014 states that "Mr. Ellison is able to exercise control over approval of significant corporate transactions, including a change of control or liquidation."[2]

In 2013 Ellison entered into a nine year partnership between Oracle Corp and Salesforce.com, a direct NetSuite CRM competitor, to integrate their web-based platforms. [14]

NetSuite relies on database software licensed from Oracle. There is a risk that this software may not be available at a commercially viable price and it cannot be easily replaced.[2]

Products[edit]

NetSuite groups its services into four main suites plus NetSuite OneWorld:

  • Enterprise Resource Planning (ERP) - NetSuite ERP manages a business' back office operations which includes financial, human resources, orders, inventory, shipping and billing. Netsuite ERP in its primary form as accounting software retails for $129 per user / per month with Inacct being its closest competitor but pricing can escalate significantly with add-ons. Other competitors are Sage Quantum Accounting and Quickbooks Enterprise. Its integration with other NetSuite modules, completeness, variety of add-on apps, user interface and ease of multinational accounting earned it PC Magazine's Editor's Choice. Criticism was that it has no built in payroll.[15]
  • Customer Relationship Management (CRM) – NetSuite CRM automates a company's sales and marketing operations as well as provide customer insights. Reviews have cited its flexibility as a major asset but others complained of its complexity and how it's more suited for medium sized firms who can have a person dedicated to it.[16] NetSuite CRM starts at $79 per user / per month and the enterprise edition CRM+ at $129 per user / per month. But as with NetSuite ERP prices can escalate quickly with over 200 different pricing and add-on packages to choose from. Competitors are Microsoft Dynamics CRM and Salesforce CRM.
  • E-commerce - SuiteCommerce provides a platform that allows business to sell online and integrates with the business' more traditional phone and Point of Sale (POS) sales. In 2012 Pricing for the midmarket edition started at $1,999 per month, while the enterprise version begins at $3,999 per month. A competitor is Demandware.[17]


  • NetSuite OneWorld offers the above services plus additional capabilities for multinational companies such as the ability to manage multiple subsidiaries, currencies, accounting standards and tax requirements.[19] A competitor for the complete offer is Odoo: although OpenSource, Odoo will provide support for a fee and provides hosting services (free up to 2 users, and 12€/user/module/month).

Awards and recognition[edit]

In June 2014, NetSuite was named in the Forbes Magazine "most innovative growth companies" list. [20]

See also[edit]

References[edit]

External links[edit]