Profile: NetSuite Inc. (N)

NetSuite Inc., incorporated in September 1998, provides an on-demand, integrated business management application suite that offers Accounting / Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and e-commerce functionality to medium-sized businesses and divisions of large companies. It also offers customer support and professional services related to its suite. NetSuite delivers its suite over the Internet as a subscription service using the software-as-a-service (SaaS) model. As of December 31, 2008, the Company had approximately 6,600 customers. During the year ended December 31, 2008, the Company’s revenue generated outside of North America was 19%. On June 4, 2008, the Company acquired OpenAir, Inc.(OpenAir) a provider of on-demand professional services automation software.

The Company’s is NetSuite is designed to provide the core business management capabilities that the customers require. NetSuite, NetSuite OneWorld and NetSuite CRM+ are designed for use by types of businesses. In addition, the Company offers industry-specific configurations for use by wholesale/distribution, services and software companies. It also sells on-demand application modules that customers can purchase to obtain additional functionality required for their business needs. NetSuite is targeted at medium-sized businesses and divisions of large companies, and provides a single platform for ERP, CRM and e-commerce capabilities. It contains a range of features that enable users to do their individual jobs more effectively. In addition, because all users are transacting business on the same database system, NetSuite can automate processes across departments. The users access the application and data through a role-based user interface, or dashboard, tailored to deliver functionality and information appropriate for their position.

NetSuite OneWorld is targeted at global businesses and divisions of companies operating in multi-national and multi-subsidiary environments. OneWorld allows users to utilize its single platform for ERP, CRM and e-commerce capabilities in multi-currency environments across multiple subsidiaries and legal entities. NetSuite OneWorld provides the ability to manage multiple companies or legal entities, with potentially different currencies, taxation rules, and reporting requirements, within a single NetSuite account. In addition, marketing and customer support operations can also be managed worldwide using NetSuite OneWorld so processes, such as lead routing and trouble ticket assignment can be handled across regions or in-country, with global customer visibility and measurement of marketing and service operational performance.

NetSuite CRM+ is targeted at a range of companies, including companies larger than medium-sized business customers. Medium-sized businesses may use NetSuite CRM+ as an entry point into the entire suite, while larger enterprises often implement it as an alternative to more limited CRM offerings. This application provides sales force automation, marketing automation, customer support and service management functionality. The product also incorporates order management and many other ERP and e-commerce capabilities. This provides users with real-time view of customer interactions than can be provided by stand-alone CRM products, whether on-premise or on-demand. NetSuite CRM+ also offers incentive management, project tracking, Website hosting and analytics and partner relationship management.

The Company also offers capabilities that are part of the integrated suite, but are sold separately. These modules allow the customers to augment aspects of the suite to improve its relevance to their businesses. The Company has configured NetSuite to meet the requirements of selected industries. The editions serve companies in the wholesale/distribution, services and software industries. Within each edition, the Company offers functionality to complement the NetSuite offering, templates of practices, sales and professional services teams with industry-specific expertise.

NetSuite Business Operating System(NS-BOS) is the technology platform that allows customers, partners and developers to tailor and extend its suite to meet company, vertical and industry requirements for personalization, business processes and practices. NS-BOS allows partners to develop products of their own, including industry-specific versions of its application suite. NS-BOS and its customization environment, titled SuiteFlex, are designed to continue to operate across version upgrades without modification and tools include SuiteBuilder, SuiteScript, SuiteTalk, SuiteScript D-Bug and SuiteBundler. SuiteBuilder is an integrated set of point-and-click tools that enables customers to tailor NetSuite to fit their company and industry requirements. SuiteBuilder enables users to customize fields and forms and add database tables, without the need for additional programming. SuiteScript provides the benefits of architecture and on-demand hosting efficiencies for interaction between the standard and custom processes.

SuiteTalk is an integration tool that utilizes simple object access protocol and standards-based Web service application programming interfaces to integrate the suite with other applications, such as third-party vertical applications and legacy systems. The suite’s single data repository, combined with SuiteTalk’s integration technologies, enables the application suite to incorporate and leverage a range of data generated by the customers’ legacy applications. Developers can also use SuiteTalk to build add-on capabilities, such as wireless interfaces. SuiteScript D-Bug, the real-time, interactive debugger enables code validation and testing as third-party applications run on the application server. SuiteBundler enables the reuse of customizations and applications built with SuiteFlex. In addition to NetSuite, The Company also offers both professional services automation (PSA) and project portfolio management (PPM) products through its OpenAir subsidiary. These tools, delivered in a SaaS environment, provide professional services and project-based organizations, and firms capabilities to capture and report on billable time, manage projects and resources, and bill customers.

The Company has developed consulting and implementation services to assist the with integrating and importing data from other systems, changing their business processes to take advantage of the capabilities enabled by the integrated suite, implementing those new business processes within their organization and configuring and customizing the application suite for their business processes and requirements. It offers a variety of training services through the training resource, NetSuite University, to facilitate the adoption of the suite throughout the customer’s organization.

The Company competes with Epicor Software Corporation, Intuit Inc., Microsoft Corporation, SAP, The Sage Group plc and salesforce.com, inc.