NetSuite Inc. is an American cloud computing company founded in 1998 with headquarters in San Mateo, California, that provides software services to help manage business finances, operations, and customer relations. Its services suit both medium and large-sized businesses with consolidated ERP, CRM and e-commerce features. Oracle Corporation offered to purchase NetSuite for approximately $9.3 billion USD in July 2016, with the deal finalizing in November 2016.
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History
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. 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. 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 USD in revenue to a billion-dollar run-rate prior to its acquisition by Oracle Corp.
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.
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.
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.
On July 28, 2016, Oracle announced it had offered to purchase NetSuite for $9.3 billion USD. 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.
Relationship with Oracle Corporation
Even prior to the July 28, 2016 announcement that Oracle Corporation would acquire NetSuite Inc., the two firms shared a close relationship. Both founder Goldberg and CEO Nelson worked at Oracle Corp. prior to forming NetSuite. Goldberg joined Oracle immediately after graduating from Harvard College in 1987, and held a variety of positions in R&D. Nelson joined Oracle in 1992 as Vice President of Marketing, ultimately working directly for Larry Ellison.
In 1998 Evan Goldberg received approximately $125 million USD in initial financial backing from Larry Ellison, founder and chief executive officer of Oracle Corporation through Ellison's venture capital entity Tako Ventures. Other initial investors were StarVest Partners ADP and UBS PaineWebber. The NetSuite software also relies on database software licensed from Oracle.
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."
Relationship with Channel Partners
NetSuite's award-winning Channel Program includes three types of software consulting and sales organizations:
Accounting Firms with Technology Practices
NetSuite partners with solution providers who deliver accounting and ERP consulting services and advise clients on their adoption of cloud computing technology.
Entrepreneurial Cloud Consultants
The NetSuite Solution Provider Program offers cloud consultants products and services to help mid-size companies power their operations. Developing Knowledge in Manufacturing, Inc. is a NetSuite Solution Provider in this space.
Experienced ERP Resellers
Companies who resell ERP solutions can scale and build their cloud ERP practice through NetSuite's Solution Provider Program.
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Products
NetSuite groups its services into four main suites plus NetSuite OneWorld:
- 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.
- Customer relationship management (CRM) - NetSuite CRM supports sales, marketing operations and customer insights.
- E-commerce - NetSuite's CMS 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.
- Professional services automation (PSA) - NetSuite PSA manages the operations of service-based, project-oriented businesses.
- Human Capital Management (HCM) - NetSuite SuitePeople securely weaves people data throughout the Suite, giving businesses complete control over their Core HR & payroll processes.
- 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.
Acquisitions
- 2008: OpenAir - web-based timesheets and expense reports
- 2009: QuickArrow - web-based professional services automation application
- 2013: Retail Anywhere - retail e-commerce software
- 2013: TribeHR - human resource software for small to medium-sized businesses
- 2013: LightCMS - content management software
- 2014: Venda - retail e-commerce software
- 2014: eBizNET solutions - advanced warehouse management
- 2015: Bronto Software - email service provider
- 2015: Monexa - subscription billing and recurring payment
Awards
- June 2014: Forbes magazine's list of Most Innovative Growth Companies
See also
- Accounting software
- Applicant tracking system
- Comparison of accounting software
- Customer relationship management
- Comparison of CRM systems
- Comparison of PSA systems
- E-commerce
- Enterprise resource planning
- Human resource management system
- Professional services automation
References
External links
- Company website
Source of article : Wikipedia
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