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NetSuite

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NetSuite Inc.
Company typeSubsidiary of Oracle Corporation
IndustryComputer software
Enterprise software
Accounting software
Business software
Cloud computing
Enterprise resource planning (ERP)
Founded1998; 26 years ago (1998)
California, United States
FounderEvan Goldberg
Headquarters
Austin, Texas
,
U.S.[1][2]
Key people
ProductsERP software
Accounting software
Inventory management software
Financial software
Order management system
ServicesCloud-based business management platform
Applications
Software as a Service
Websitewww.netsuite.com

NetSuite Inc. is an American cloud-based enterprise software company that provides products and services tailored for small and medium-sized businesses (SMBs) including accounting and financial management, customer relationship management (CRM), inventory management, human capital management, payroll, procurement, project management and e-commerce software.[4][5] NetSuite was founded in 1998 with headquarters in Austin, Texas.[6] The company is widely seen as the first cloud computing software company, with its founding pre-dating that of Salesforce by about a month.[7][8]

Oracle Corporation acquired NetSuite for approximately US$9.3 billion in November 2016. The Oracle NetSuite Global Business Unit[9] is managed by Executive Vice President Evan Goldberg as "Oracle’s Cloud ERP for Small and Mid-sized Enterprises with the ability to scale to Fortune 500 firms".[10]

History

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NetSuite can trace its beginning to a five-minute phone call between Evan Goldberg and Larry Ellison, when the two discussed the idea of selling software over the internet.[11][12] That conversation led Evan Goldberg to found NetLedger, NetSuite's original name, in 1998.[8] It offered web-hosted accounting software.[8] The company was seeded with 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 NetLedger. At one time the solution was licensed by Oracle, branded The Oracle Small Business Suite; however, that experience was short-lived, and the licensing deal was cancelled in 2004.[13] 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.[14] 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.[15]

In September 2003, the company officially changed its name from NetLedger to NetSuite, Inc. to reflect the company's success in expanding its offerings to a suite of business applications beyond just accounting, including ERP, CRM and e-commerce.[16][17]

On January 4, 2007, NetSuite named Oakland A's General Manager Billy Beane (of Moneyball fame) to its board of directors.[18]

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.[19] On July 28, 2016, Oracle announced it had offered to purchase NetSuite for $9.3 billion.[20][21] The deal closed in November.[20]

NetSuite headquarters are located in Austin, Texas. NetSuite has additional offices in Denver, Colorado; Santa Monica and Redwood City, California; Chicago, Illinois; Atlanta, Georgia; New York City; Boston, Massachusetts; Toronto, Canada; the United Kingdom; Spain; the Czech Republic; Philippines; Hong Kong; Singapore; Australia; Brazil;[22] and Uruguay.[23]

In 2023, NetSuite celebrated its 25-year anniversary.[24]

Relationship with Oracle Corporation

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In 1998, Evan Goldberg received approximately $125 million in initial financial backing from Larry Ellison,[25] founder and chief executive officer of Oracle Corporation through Ellison's venture capital entity Tako Ventures.[26] Other initial investors were StarVest Partners, ADP and UBS PaineWebber.[27] The NetSuite software also relies on Oracle Database software.[28]

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."[29]

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.[20]

Products, services and support

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NetSuite offers a modular suite of cloud-based business management applications. Depending on the choice of modules, the platform can support accounting capabilities like general ledger, accounts payable, accounts receivable, cash management, tax management, purchasing and inventory and order management, along with optional modules like customer relationship management, e-commerce, human resource and workforce management, payroll management, professional services automation, warehouse management and supply chain management, which can be activated as needed.[30] The cost of a NetSuite subscription is not fixed: it depends on the modules selected and the number of users.[31] The platform is accessed via the cloud and all data is centralized and stored in the cloud, allowing users to access data from different devices and countries.[32][33] Fixed asset management, revenue recognition, planning and budgeting and subscription billing are also available.[34] Multi-entity and global accounting and consolidation functionality is available at additional cost via NetSuite's OneWorld module, which supports 27 languages, and multiple currencies and tax codes.[35] As with other cloud-based applications, periodic upgrades offer clients access to current features and functionality more readily than they would have been able to achieve using on-premises code.[36]

NetSuite offers analytics and reporting, which use the centralized data to provide real-time visibility into client company operational and financial performance.[37] Pre-configured role-based dashboards and key performance indicators allow users to monitor business performance.[38]

Products

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  • NetSuite Analytics Warehouse - business intelligence and data insight capabilities with pre-built third-party data integrations[39][40]
  • NetSuite CPQ - supports sales teams with configure, price, and quote capabilities; integrated with NetSuite's ERP, CRM, and e-commerce products[41]
  • NetSuite Connector - allows customers to integrate NetSuite products with e-commerce stores, online marketplaces, and point-of-sale systems such as Shopify, BigCommerce, Adobe Commerce, WooCommerce, Amazon, eBay, and Walmart[42]
  • NetSuite SuitePeople Workforce Management - supports shift scheduling, wage calculations, and workforce time and attendance tracking[43][44]
  • NetSuite ERP - the applications that make up NetSuite ERP run on the cloud and automate core business processes in finance, sales, HR, warehouse management, and supply chain management[44][45][46]
  • NetSuite AP Automation- automates invoice processing and paying vendors[47]
  • NetSuite Cloud Accounting - offers a general ledger, payment tracking, cash flow management, invoicing, accounts payable and receivable, and tax management[48]
  • NetSuite Accounts Payable - provides several automated capabilities, including, bill matching and approvals, payment reconciliation[49]
  • NetSuite Text Enhance - Generative AI capability that helps users create contextual and personalized content for any text area in NetSuite based on a few starter words that describe the probable intent.[50]
  • NetSuite Enterprise Performance Management (EPM) - integrated set of finance systems that connect financial and operational planning, streamline close processes, and enhance tax and narrative reporting.[51]
  • NetSuite Account Reconciliation - standardizes and automates the reconciliation and transaction matching process to enable a faster close.[52]
  • NetSuite Bill Capture - scans invoice data into NetSuite using AI-based document object detection and optical character recognition (OCR) technologies.[53]
  • NetSuite Advanced Customer Support - service that provides proactive, prescriptive optimization of a NetSuite account.[54]

Services

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  • NetSuite Education Services - with this program, NetSuite offers training and certifications to help users improve their use of NetSuite.[55] This service includes NetSuite Learning Cloud Support[56] and NetSuite Guided Learning.[57]
  • NetSuite Social Impact program - this program provides nonprofits with donated software and pro bono tech consulting; it includes Suite Donation, Suite Pro Bono, and Suite Capacity[58]

Acquisitions

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  • 2008: OpenAir – web-based timesheets and expense reports[59]
  • 2009: QuickArrow – web-based professional services automation application
  • 2013: Retail Anywhere – retail e-commerce software[60]
  • 2013: TribeHR – human resource software for small to medium-sized businesses[61]
  • 2013: Order Motion – cloud-based direct-to-consumer order management system[62][63]
  • 2013: LightCMS – content management software[64]
  • 2014: Venda – retail e-commerce software[65]
  • 2014: eBizNET solutions – advanced warehouse management[66]
  • 2015: Bronto Software – email service provider[67][68]
  • 2015: Monexa[69] – subscription billing and recurring payment
  • 2021: FarApp - provides e-commerce, logistics, retail, and hospitality connectors for Oracle NetSuite[70]
  • 2022: Verenia CPQ - allows customers to generate sales proposals directly from NetSuite ERP[71][72]
  • 2022: ADI Insights - overtime management, time capture, demand forecasting, and shift scheduling[73]
  • 2023: Next Technik - Field Service Management[74]

Reception

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In 2024, NetSuite was named Frost & Sullivan Global Cloud ERP Company of the Year.[75] The company was also selected as an Inc. Power Partner for the third year in a row.[76]

See also

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References

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  1. ^ Grant, Nico; Deveau, Scott (December 11, 2020). "Oracle Moves Headquarters to Texas, Joining Valley Exodus". Bloomberg.com. Retrieved September 30, 2021.
  2. ^ Bursztynsky, Jessica (December 11, 2020). "Oracle is moving its headquarters from Silicon Valley to Austin, Texas". CNBC. Retrieved September 30, 2021.
  3. ^ Goldberg, Evan (January 29, 2021). "Amid a pandemic and a historic racial reckoning, a tech leader confronts the limits of empathy". Fast Company. Retrieved September 30, 2021.
  4. ^ Hardy, Quentin (May 13, 2014). "NetSuite: Enterprise Software Still Follows a Manufacturing Model". The New York Times. Retrieved October 30, 2015.
  5. ^ Hardy, Quentin (May 15, 2012). "NetSuite Moves to 'Commerce as a Service'". The New York Times. Retrieved October 30, 2015.
  6. ^ Bursztynsky, Jessica (December 11, 2020). "Oracle is moving its headquarters from Silicon Valley to Austin, Texas". CNBC. Retrieved September 30, 2021.
  7. ^ Evans, Bob (August 27, 2021). "How Evan Goldberg and Larry Ellison Made Magic—Twice—with NetSuite and Oracle". Retrieved September 30, 2021.
  8. ^ a b c Tuchman, Robert (January 26, 2021). "How Success Happened for Evan Goldberg of Oracle NetSuite". Entrepreneur. Retrieved September 30, 2021.
  9. ^ "Evan Goldberg, Executive Vice President of Oracle NetSuite Global Business Unit, Episode 91". The WOW Factor Podcast. Retrieved September 30, 2021.
  10. ^ "The new, new NetSuite – it's all about your growth at SuiteConnect". Diginomica. October 18, 2018.
  11. ^ Weinberger, Matt. "How a 5-minute phone call with Oracle's Larry Ellison led to the creation of the first cloud software company and a $9.3 billion acquisition". Business Insider. Retrieved December 10, 2022.
  12. ^ "How the cloud creator shapes customer success". Australian Financial Review. January 18, 2022. Retrieved December 10, 2022.
  13. ^ Cowley, Stacy (August 19, 2004). "NetSuite relaunches, Oracle delays small business suite". Computerworld. Retrieved December 15, 2022.
  14. ^ Clancy, Heather. "Disruptor | Zach Nelson, CEO, NetSuite". ZDNet. Retrieved May 2, 2017.
  15. ^ "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.
  16. ^ Peters, Kurt (September 23, 2003). "netledger, INC. changes name to netsuite, INC". Digital Commerce 360. Retrieved January 2, 2023.
  17. ^ Miller, Abby (September 19, 2003). "Oracle's NetLedger Changes Name to NetSuite". DMNews. Retrieved January 2, 2023.
  18. ^ "Billy Beane takes seat on NetSuite board". San Francisco Business Times. January 4, 2007. Retrieved August 2, 2012.
  19. ^ "NASDAQ - NetSuite Inc. (N) Prospectus". Retrieved September 1, 2014.
  20. ^ a b c Dignan, Larry. "Oracle closes NetSuite deal: Can it expand into midmarket, small enterprise?". ZDNet. Retrieved May 29, 2018.
  21. ^ Hardy, Quentin; Picker, Leslie (July 28, 2016). "Oracle's $9.3 Billion Deal for NetSuite Will Bolster Its Cloud Offerings". The New York Times. ISSN 0362-4331. Retrieved January 22, 2023.
  22. ^ Brooks, Steve (July 3, 2019). "Oracle NetSuite turns eye to Brazil". Enterprise Times. Retrieved December 19, 2022.
  23. ^ "NetSuite - Contact Information - Phone - Contact Us". www.netsuite.com. Retrieved September 30, 2021.
  24. ^ Melendez, Steven (October 17, 2023). "NetSuite pioneered cloud computing. But what comes next?". Fast Company. Retrieved February 26, 2024.
  25. ^ "Seeking Alpha - Larry Ellison's Investment In NetSuite: Conflict of Interest?". July 9, 2007.
  26. ^ "The Register - Ellison's NetSuite still not making money". The Register.
  27. ^ "The Internet Retailer - NetLedger Inc. Changes Name to NetSuite Inc".
  28. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 14.
  29. ^ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 17.
  30. ^ "NetSuite finds a sweet spot with OneWorld". CNET. April 16, 2008. Retrieved April 23, 2021.
  31. ^ "14 Best QuickBooks Alternatives for Your Business Accounting". founderjar.com. December 11, 2020. Retrieved April 23, 2021.
  32. ^ Roberts, Jamie (May 8, 2018). "NetSuite products and services explained". Anderson Frank. Retrieved January 14, 2022.
  33. ^ Lauchlan, Stuart (October 20, 2021). "NetSuite Analytics Warehouse - where the rubber hits the road for NetSuite customers in search of insights?". diginomica.com. Retrieved January 14, 2022.
  34. ^ "Oracle NetSuite OneWorld Review". PC Magazine. June 29, 2018. Retrieved April 23, 2021.
  35. ^ "Country Specific Features - Oracle NetSuite" (PDF). Oracle. Retrieved April 23, 2021.
  36. ^ Herbert, L. and Erikson, J., The ROI Of Cloud Apps, Forrester Research, Inc., published 23 June 2011, accessed 15 May 2024
  37. ^ Ferranti, Marc (April 4, 2019). "NetSuite refines focus on SMBs facing growth challenges". CIO. Retrieved January 14, 2022.
  38. ^ Clark, Lindsay. "Netsuite presents banking and data warehouse features". The Register. Retrieved January 14, 2022.
  39. ^ Clark, Lindsay (September 28, 2022). "NetSuite expands into automation, warehouse management". www.theregister.com. Retrieved December 22, 2022.
  40. ^ Lauchlan, Stuart (April 13, 2021). "Getting back to the heart of who NetSuite is for - Oracle NetSuite EVP Evan Goldberg wants to re-invent the biz apps user experience". diginomica.com. Retrieved January 14, 2022.
  41. ^ Gillin, Paul (September 28, 2022). "Oracle NetSuite gets slew of new features". SiliconANGLE. Retrieved December 22, 2022.
  42. ^ Hale, Jeff (January 5, 2023). "NetSuite CRM Review". Business News Daily. Retrieved January 5, 2023.
  43. ^ Hageman, Mitchell (September 29, 2022). "NetSuite announces SuitePeople Workforce Management". IT Brief Australia. Retrieved January 5, 2023.
  44. ^ a b O'Donnell, Jim (October 3, 2022). "NetSuite ERP adds CPQ, workforce management applications". TechTarget. Retrieved January 5, 2023.
  45. ^ "SaaS Accounting: Benefits and Best Practices for Finance Teams". Techfunnel. November 14, 2022. Retrieved January 13, 2023.
  46. ^ Crail, Chauncey (January 6, 2023). "8 ERP System Examples". www.forbes.com. Retrieved January 13, 2023.
  47. ^ Moorhead, Patrick (October 4, 2022). "NetSuite's AP Automation Is A Powerful And Important Step In Its SuiteBanking Vision". Forbes. Retrieved January 13, 2023.
  48. ^ Reisinger, Don (July 7, 2022). "The best accounting software for your small business". Digital Trends. Retrieved January 22, 2023.
  49. ^ du Preez, Derek (September 28, 2022). "Oracle NetSuite announces automation and data updates to 'help businesses run better'". diginomica.com. Retrieved January 22, 2023.
  50. ^ "Oracle NetSuite follows generative AI trend in ERP | TechTarget". ERP. Retrieved December 13, 2023.
  51. ^ Rory Bathgate (October 17, 2023). "NetSuite aims to bolster finance teams with new AI planning tools". ITPro. Retrieved December 21, 2023.
  52. ^ "Oracle NetSuite gets auto-reconciliation capability". SiliconANGLE. June 14, 2023. Retrieved January 8, 2024.
  53. ^ Gillin, Paul (October 17, 2023). "Oracle NetSuite gets generative AI, performance management and much more". Silicon Angle. Retrieved January 24, 2024.
  54. ^ "NetSuite updates ERP suite with new automation, analytics capabilities". CIO. Retrieved January 30, 2024.
  55. ^ Arrowsmith, Ranica (November 11, 2020). "NetSuite debuts SuiteAccountants program". Accounting Today. Retrieved January 26, 2023.
  56. ^ Ghoshal, Anirban (September 26, 2022). "Rewards programs fuel cloud ERP uptake, NetSuite says". CIO. Retrieved January 26, 2023.
  57. ^ Brett, Charles (July 19, 2023). "NetSuite Guided Learning". Enterprise Times.
  58. ^ Duda, Dominick (September 20, 2019). "Oracle NetSuite to Expand Social Impact Program". research.g2.com. Retrieved January 26, 2023.
  59. ^ Schonfeld, Erick (June 2, 2008). "NetSuite Buys OpenAir For $26 million". TechCrunch.
  60. ^ "NetSuite Acquires Retail Anywhere, Adding Key Capabilities To Support Multi-Channel Retail Success". PR Newswire. January 10, 2013.
  61. ^ Hesseldahl, Arik (October 22, 2013). "NetSuite Acquires HR Software Player TribeHR". AllThingsD.
  62. ^ Matt (May 22, 2013). "NetSuite Acquires Order Motion: A Good Idea?". FastPivot.com. Retrieved January 14, 2022.
  63. ^ O'Dell, J. (May 8, 2013). "NetSuite buys OrderMotion to handle orders better and faster". VentureBeat. Retrieved January 14, 2022.
  64. ^ "Element Fusion, the Creator of LightCMS, Joins Forces with NetSuite". LightCMS Blog. March 13, 2013.
  65. ^ Gagliordi, Natalie (July 17, 2014). "NetSuite acquires Venda to boost omnichannel efforts". ZDNet.
  66. ^ Bond, Josh (July 1, 2015). "Top 20 supply chain management software suppliers, 2015". Modern Materials Handling. Retrieved October 29, 2015.
  67. ^ Ohnesorge, Lauren K. (April 23, 2015). "Durham-based Bronto Software to be Acquired in $200M deal". Triangle Business Journal.
  68. ^ Ohnesorge, Lauren K. (October 22, 2015). "NetSuite CEO: Bronto acquisition turning out 'better than we expected'". Triangle Business Journal. Retrieved October 29, 2015.
  69. ^ Monexa
  70. ^ "Oracle announced that it has entered into an agreement to acquire FarApp". Netsuite Consultants Los Angeles - RXD Systems Los Angeles. April 12, 2021. Retrieved January 14, 2022.
  71. ^ O'Donnell, Jim (October 3, 2022). "NetSuite ERP adds CPQ, workforce management applications". TechTarget. Retrieved January 18, 2023.
  72. ^ Brooks, Steve (January 10, 2022). "NetSuite acquires most of Verenia, the CPQ and CRM vendor". Enterprise Times. Retrieved January 18, 2023.
  73. ^ Brooks, Steve (May 9, 2022). "Oracle buys SuiteApp Time Management vendor". Enterprise Times. Retrieved January 7, 2023.
  74. ^ Wainewright, Phil (October 17, 2023). "SuiteWorld 23 - NetSuite adds generative AI, Field Service Management, new analytics and finance automation". Diginomica.
  75. ^ Whitaker, Lindsey (May 7, 2024). "NetSuite Awarded Frost & Sullivan's 2024 Global Company of the Year Award for Leading Innovation in Cloud Business Management Solutions". Frost & Sullivan. Retrieved November 26, 2024.
  76. ^ "Power Partner Awards 2024 - Meet Inc.'s 2024 Power Partners". Inc Magazine.
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