NetSuite

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NetSuite Inc.
TypeSubsidiary of Oracle Corporation
IndustryComputer software
FoundedCalifornia (1998)
Headquarters,
Key people
Evan Goldberg (SVP of Development)
Jim McGeever (President) (retired)
Lawrence (Larry) J. Ellison (stakeholder)
ServicesCloud-based business management platform

NetSuite Inc. was an American cloud computing company founded in 1998 with headquarters in San Mateo, California,[1] that provided software and services to manage business finances, operations, and customer relations.[2] Its software and services were tailored for small and medium-sized enterprises with solutions for ERP, CRM, PSA, inventory/warehouse management and e-commerce.[3] Oracle Corporation acquired NetSuite for approximately US$9.3 billion in November 2016. The newly formed Oracle NetSuite Business Unit is managed by Executive Vice President Evan Goldberg as "Oracle’s Cloud ERP for Small and Mid-sized Enterprises".[4]

History[edit]

NetSuite was founded in 1998 by Evan Goldberg under the original name NetLedger, which offered web-hosted accounting software. The company was seeded with both start-up money from Oracle CEO Larry Ellison as well as a host of key staff previously employed at Oracle. The company’s Chairman and CTO and other management transitioned from Oracle to NetSuite. At one time the NetSuite solution was licensed by Oracle, branded The Oracle Small Business Suite, however, that experience was short lived and the program was cancelled.[5] NetSuite is widely seen as the first cloud computing software company, with the company’s 1999 founding pre-dating that of Salesforce.com by about a month. Goldberg was the chairman and chief technology officer up until the Oracle acquisition.

In July 2002, Zach Nelson was appointed CEO. Prior to joining NetSuite, Nelson ran an early provider of business applications over the Internet called MyCIO.com, a division of McAfee Corp.[6] This experience led him to the belief that all software would be delivered over the internet, and he left McAfee to join NetSuite. He led the company from about $1 million in revenue to a billion-dollar run-rate prior to its acquisition by Oracle Corp.[7]

On January 4, 2007, NetSuite named Oakland A's General Manager Billy Beane (of Moneyball fame) to its board of directors.[8]

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.[9]

One quarter of employees are based in its Philippine office. NetSuite has additional offices in Denver, Las Vegas, Austin, Chicago, Atlanta, New York City, Boston, Toronto, the United Kingdom, Spain, the Czech Republic, Hong Kong, Singapore, Australia, and Uruguay.

Relationship with Oracle Corporation[edit]

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

Ellison and family members owned approximately 47.4% of NetSuite's common stock as of December 31, 2014. The firm's 10-Q filing on March 2, 2015, stated that "Mr. Ellison is able to exercise control over approval of significant corporate transactions, including a change of control or liquidation."[14]

On July 28, 2016, Oracle announced it had offered to purchase NetSuite for $9.3 billion. The deal faced intense scrutiny because Oracle founder, Larry Ellison, owned nearly 40% of NetSuite. This conflict of interest has led the board of both companies to establish independent committees to review the deal from the perspective of independent shareholders. Some major NetSuite shareholders, such as T. Rowe, notified Oracle they would not be tendering their shares under the current terms of the proposed deal. In early October 2016, Oracle extended the deadline for shareholders of NetSuite to tender their shares to November 4. The deal closed Nov. 7.[15]

Products, services and support[edit]

NetSuite offers a modular product. Depending on the choice of modules, the platform can support management reporting, accounting, billing, human resources management, tax calculation, sales tools, payroll accounting, analytics.[16] The cost of a NetSuite subscription is not fixed, it depends on the modules selected and the size of the company.[17] The platform is accessed via the cloud, allowing users to access data from different devices and countries. NetSuite supports adding multiple companies with different currencies and reporting forms.[18] NetSuite also supports local tax codes, including US, UK, Canada and EU countries.[19]

Acquisitions[edit]

  • 2008: OpenAir – web-based timesheets and expense reports[20]
  • 2009: QuickArrow – web-based professional services automation application
  • 2013: Retail Anywhere – retail e-commerce software[21]
  • 2013: TribeHR – human resource software for small to medium-sized businesses[22]
  • 2013: LightCMS – content management software[23]
  • 2014: Venda – retail e-commerce software[24]
  • 2014: eBizNET solutions – advanced warehouse management[25]
  • 2015: Bronto Software – email service provider[26][27]
  • 2015: Monexa[28] – subscription billing and recurring payment

See also[edit]

References[edit]

  1. ^ a b "NetSuite Corporate Headquarters - 500 Oracle Parkway Redwood Shores, CA 94065". www.netsuite.com.
  2. ^ Hardy, Quentin (May 15, 2012). "NetSuite Moves to 'Commerce as a Service'". The New York Times. Retrieved October 30, 2015.
  3. ^ Hardy, Quentin (May 13, 2014). "NetSuite: Enterprise Software Still Follows a Manufacturing Model". The New York Times. Retrieved October 30, 2015.
  4. ^ "The new, new NetSuite – it's all about your growth at SuiteConnect". Diginomica.
  5. ^ "ERPsoftware360".
  6. ^ Clancy, Heather. "Disruptor | Zach Nelson, CEO, NetSuite | ZDNet". ZDNet. Retrieved May 2, 2017.
  7. ^ "E718: NetSuite CEO Zach Nelson on building to $1 billion run rate, early days at Oracle, McAfee & Sun, pioneering enterprise, prioritizing sales, going public, the CEO's toughest job & the future of employment | This Week In Startups". thisweekinstartups.com. Retrieved May 3, 2017.
  8. ^ "Billy Beane takes seat on NetSuite board". San Francisco Business Times. January 4, 2007. Retrieved August 2, 2012.
  9. ^ "NASDAQ - NetSuite Inc. (N) Prospectus". Retrieved September 1, 2014.
  10. ^ "Seeking Alpha - Larry Ellison's Investment In NetSuite: Conflict of Interest?".
  11. ^ "The Register - Ellison's NetSuite still not making money".
  12. ^ "The Internet Retailer - NetLedger Inc. Changes Name to NetSuite Inc".
  13. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 14.
  14. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 17.
  15. ^ Dignan, Larry. "Oracle closes NetSuite deal: Can it expand into midmarket, small enterprise? | ZDNet". ZDNet. Retrieved May 29, 2018.
  16. ^ "NetSuite finds a sweet spot with OneWorld". cnet.com. Retrieved April 23, 2021.
  17. ^ "14 Best QuickBooks Alternatives for Your Business Accounting". founderjar.com. Retrieved April 23, 2021.
  18. ^ "Oracle NetSuite OneWorld Review". uk.pcmag.com. Retrieved April 23, 2021.
  19. ^ "Country Specific Features - Oracle NetSuite" (PDF). docs.oracle.com. Retrieved April 23, 2021.
  20. ^ Schonfeld, Erick (June 2, 2008). "NetSuite Buys OpenAir For $26 million". TechCrunch.
  21. ^ "NetSuite Acquires Retail Anywhere, Adding Key Capabilities To Support Multi-Channel Retail Success". PR Newswire. January 10, 2013.
  22. ^ Hesseldahl, Arik (October 22, 2013). "NetSuite Acquires HR Software Player TribeHR". AllThingsD.
  23. ^ "Element Fusion, the Creator of LightCMS, Joins Forces with NetSuite". LightCMS Blog. March 13, 2013.
  24. ^ Gagliordi, Natalie (July 17, 2014). "NetSuite acquires Venda to boost omnichannel efforts". ZDNet.
  25. ^ Bond, Josh (July 1, 2015). "Top 20 supply chain management software suppliers, 2015". Modern Materials Handling. Retrieved October 29, 2015.
  26. ^ Ohnesorge, Lauren K. (April 23, 2015). "Durham-based Bronto Software to be Acquired in $200M deal". Triangle Business Journal.
  27. ^ Ohnesorge, Lauren K. (October 22, 2015). "NetSuite CEO: Bronto acquisition turning out 'better than we expected'". Triangle Business Journal. Retrieved October 29, 2015.
  28. ^ Monexa

External links[edit]