NetSuite

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NetSuite Inc.
Public (NYSEN)
Industry Computer software
Founded California (1998)
Headquarters San Mateo, California, United States
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]
Decrease (US$60.7) million (2013)[1]
Decrease (US$70.4) million (2013)[1]
Number of employees
2,550 (March 2014)[2]

NetSuite Inc. is an American 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 medium- to enterprise-sized businesses.

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 UK, 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[citation needed]
  • Bronto Software (2015) - Email Service Provider [10]

Ties to Larry Ellison and Oracle[edit]

In 1998 Evan Goldberg received approximately $125 million in initial financial backing from Larry Ellison,[11] founder and chief executive officer of Oracle Corp through Ellison's venture capital entity Tako Ventures.[12] Other initial investors were StarVest Partners[13] ADP and UBS PaineWebber.[14]

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.[15]

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:[citation needed]

  • Enterprise resource planning (ERP) - NetSuite ERP supports back office operations which includes financial, human resources, orders, inventory, shipping and billing. The product earned PC Magazine's Editor's Choice in 2013.[16]
  • E-commerce - SuiteCommerce is intended as a platform for online sales and integration with traditional phone and Point of Sale (POS) sales. SuiteCommerce platform is currently in use by over 1600 websites online. [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]

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]