If there was one constant message throughout the event, it’s that NetSuite is a global business practice within Oracle.
NetSuite & Oracle: Future Plans
Jim McGeever, EVP of the NetSuite Business Unit kicked off SuiteWorld using the theme “Next Starts Now.” We figured the explanation of this theme would give us some insight into what Oracle is planning to do with NetSuite as a result of the acquisition.
Based on what we were told at the Keynote and subsequent events, the future plans seem very positive for NetSuite customers and employees. The acquisition of NetSuite by Oracle and their stance as a global business unit means the company is no longer “just another tech startup.”
NetSuite, Oracle, and the Cloud
Mark Hurd, CEO of Oracle, was introduced by Jim, and was the primary presenter during the keynote. One of his main points of discussion was the benefits of functioning in cloud ERP vs. traditional ERP. These included:
- Lower cost
- Higher innovation
- More security
- No need for customization
- More features
- Faster speed
- Modern experience
We at Ultra would add that solutions in the cloud cost less since the need for major release upgrades is eliminated.
Mark touted the worldwide growth of on-premise systems is negative, while cloud is 50% year-over-year. Currently, Oracle is the fastest growing cloud company, and the “Oracle+NetSuite Strategy” is in place to set a new standard for customer cloud satisfaction in their industries.
Oracle and NetSuite want to lead the ERP landscape with a SaaS ERP suite by extending their SaaS portfolio, and maintaining a strong partner ecosystem. When asked about additional products, Jim said there are only two. While Mark did not give us details, it was heard loud and clear by Peoplesoft and JDE partners in the audience.
The biggest benefit to customers and partners of NetSuite is the investment Oracle can make on its balance sheet. Oracle has a very large number of datacenters, both in the USA and worldwide, that are currently offering or working on offering NetSuite.
Oracle’s planned investments include more in R&D, International Expansion, and broadening the suite with Oracle SaaS Solutions in budgeting, planning, and HCM. They also plan on investing in the NetSuite SuiteSuccess implementation model, as well as increasing distribution with partners and salespeople.
The bottom line is, NetSuite will be in more countries, more industries, and will have more products therefore resulting in more success.
One thing that’s interesting to note is the doubling down on the SuiteSuccess implementation methodology. Moving NetSuite’s business requirements definition into the sales effort will help shorten the time-to-implement and improve the handoff from sales to consulting.
When talking with third party implementers afterwards, everyone said this methodology will work well with smaller customers (under $50 million in revenue), but other parts will work well for larger customers.
However, the ability to translate the business model of larger, more complex organizations will need to be driven by the expertise of the enterprise software implementation team. The new verticalized, role-based interface will help to drive the success.
My next blog in this two-part series will cover the new technologies, features and functions announced at the conference, so stay tuned!
To learn more about NetSuite, visit their website here.