NetSuite

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NetSuite Inc.
Subsidiary of Oracle Corporation
IndustryComputer software
FoundedCalifornia (1998)
Headquarters,
Key people
Jim McGeever (Executive Vice President)
Evan Goldberg (Executive Vice President of Development)
Lawrence (Larry) J. Ellison (stakeholder)
ServicesCloud-based business management platform
Websitewww.netsuite.com/ Edit this on Wikidata

NetSuite Inc. is an American cloud computing company founded in 1998 with headquarters in San Mateo, California, that provides software and services to manage business finances, operations, and customer relations.[1] Its software and services are tailored for small and medium-sized businesses with modules for ERP, CRM, PSA and e-commerce.[2] Oracle Corporation has acquired NetSuite for approximately US$9.3 billion in November 2016. The newly formed Oracle Netsuite business unit is managed by executive vice president Jim McGeever as Oracles Cloud ERP for small and medium enterprises.[3]

History[edit]

NetSuite was founded in 1998 by Evan Goldberg under the original name NetLedger, which offered web-hosted accounting software. Oracle licensed the software under the banner of The Oracle Small Business Suite for a short time before cancellation.[4] 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.[5] 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.[6]

On January 4, 2007, NetSuite named Moneyball General Manager Billy Beane of Major League Baseball's Oakland A's to its board of directors. Evan Goldberg cited Beane's ability to combine facts with instinct as an important factor in the decision to involve him in the company.[7]

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.[8]

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,[9] founder and chief executive officer of Oracle Corporation through Ellison's venture capital entity Tako Ventures.[10] Other initial investors were StarVest Partners, ADP and UBS PaineWebber.[11] The NetSuite software also relies on database software licensed from Oracle.[12]

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."[13]

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.[14]

Products, Services and Support[edit]

NetSuite offers four main software solutions and optional implementation and support services:

  • Enterprise resource planning (ERP) - NetSuite ERP supports back office operations which includes financial, human resources, procurement, orders, inventory, shipping and billing. The product earned PC Magazine's Editor's Choice in 2013.[15]
  • NetSuite OneWorld [16] offers the above services plus additional capabilities for multinational companies such as the ability to manage multiple subsidiaries, currencies, accounting standards and tax requirements.[17]
  • Customer relationship management (CRM) – NetSuite CRM+ supports marketing, sales and service operations and customer insights.
  • E-commerce - NetSuite's SuiteCommerce is intended as a platform for online sales and integration with traditional phone and point of sale (POS) tools. SuiteCommerce platform is currently in use by over 1600 websites online.[18]
  • Professional services automation (PSA) - NetSuite PSA is based on the OpenAir acquisition [19] and manages the operations of service-based, project-oriented businesses.[20]
  • Human capital management (HCM) - NetSuite SuitePeople weaves people data throughout the suite to control core human resources and payroll processes.[20]
  • Netsuite Services: SuitePackages offers basic implementation services for customers, Packaged Services offers customization and integration of the Netsuite solutions,[21] Suite Support offers online help and support in case of issues. [22]

Acquisitions[edit]

  • 2008: OpenAir – web-based timesheets and expense reports[19]
  • 2009: QuickArrow – web-based professional services automation application
  • 2013: Retail Anywhere – retail e-commerce software[23]
  • 2013: TribeHR – human resource software for small to medium-sized businesses[24]
  • 2013: LightCMS – content management software[25]
  • 2014: Venda – retail e-commerce software[26]
  • 2014: eBizNET solutions – advanced warehouse management[27]
  • 2015: Bronto Software – email service provider[28][29]
  • 2015: Monexa[30] – subscription billing and recurring payment

See also[edit]

References[edit]

  1. ^ Hardy, Quentin (May 15, 2012). "NetSuite Moves to 'Commerce as a Service'". The New York Times. Retrieved October 30, 2015.
  2. ^ Hardy, Quentin (May 13, 2014). "NetSuite: Enterprise Software Still Follows a Manufacturing Model". The New York Times. Retrieved October 30, 2015.
  3. ^ "The new, new NetSuite – it's all about your growth at SuiteConnect". Diginomica.
  4. ^ "ERPsoftware360".
  5. ^ Clancy, Heather. "Disruptor | Zach Nelson, CEO, NetSuite | ZDNet". ZDNet. Retrieved May 2, 2017.
  6. ^ "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.
  7. ^ "Billy Beane takes seat on NetSuite board". San Francisco Business Times. January 4, 2007. Retrieved August 2, 2012.
  8. ^ "NASDAQ - NetSuite Inc. (N) Prospectus". Retrieved September 1, 2014.
  9. ^ "Seeking Alpha - Larry Ellison's Investment In NetSuite: Conflict of Interest?".
  10. ^ "The Register - Ellison's NetSuite still not making money".
  11. ^ "The Internet Retailer - NetLedger Inc. Changes Name to NetSuite Inc".
  12. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 14.
  13. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 17.
  14. ^ Dignan, Larry. "Oracle closes NetSuite deal: Can it expand into midmarket, small enterprise? | ZDNet". ZDNet. Retrieved May 29, 2018.
  15. ^ "PC Magazine - NetSuite ERP".
  16. ^ "NetSuite OneWorld".
  17. ^ "CNET - NetSuite Finds A Sweet Spot with OneWorld".
  18. ^ "Netsuite Profile". In Marketing We Trust. Retrieved June 26, 2015.
  19. ^ a b Schonfeld, Erick (June 2, 2008). "NetSuite Buys OpenAir For $26 million". TechCrunch.
  20. ^ a b "NetSuite Website".
  21. ^ "NetSuite Packaged Services".
  22. ^ "NetSuite SuiteSupport".
  23. ^ "NetSuite Acquires Retail Anywhere, Adding Key Capabilities To Support Multi-Channel Retail Success". PR Newswire. January 10, 2013.
  24. ^ Hesseldahl, Arik (October 22, 2013). "NetSuite Acquires HR Software Player TribeHR". AllThingsD.
  25. ^ "Element Fusion, the Creator of LightCMS, Joins Forces with NetSuite". LightCMS Blog. March 13, 2013.
  26. ^ Gagliordi, Natalie (July 17, 2014). "NetSuite acquires Venda to boost omnichannel efforts". ZDNet.
  27. ^ Bond, Josh (July 1, 2015). "Top 20 supply chain management software suppliers, 2015". Modern Materials Handling. Retrieved October 29, 2015.
  28. ^ Ohnesorge, Lauren K. (April 23, 2015). "Durham-based Bronto Software to be Acquired in $200M deal". Triangle Business Journal.
  29. ^ Ohnesorge, Lauren K. (October 22, 2015). "NetSuite CEO: Bronto acquisition turning out 'better than we expected'". Triangle Business Journal. Retrieved October 29, 2015.
  30. ^ Monexa

External links[edit]