Netsuite Continues to Gain – Touts Integration and ECommerce Wins

In a press release today Netsuite trumpets several key customer wins showcased during CEO Zach Nelson’s February 29, 2012 keynote address at ETail West 2012 Conference in Palm Desert CA.

The key wins listed:

  • Serena & Lily
  • GoPro
  • InkJetSuperStore
  • Ultimate Office
  • GameWear
  • Niner Bikes

This announcement is the first time I’ve awoken to a realization that SaaS products are providing an end-to-end solution (Accounting, Disribution, ECommerce, EDI) in a way that many in the on-premises world have concluded would be years away. I’ve seen the slide decks that claim to offer turnkey solutions but the full package seemed to be elusive.

Of the six showcase wins — all but one specifically note the use of ECommerce, and all six appear to make heavy use of wholesale distribution features by their very mention of “inventory optimization” in nearly every win report. (Note: This keynote was delivered at ETail 2012 – which caters to e-tailers so it’s logical that the win list would be heavily tilted toward e-commerce).

And deal sizes are growing.

GAAP based profit appear to have eluded Netsuite – though with more  larger customer wins like these it could be a trend that reverses and surprises those in the on premises world.

My Take:

The move to cloud computing (SaaS) will likely occur in companies experiencing steady growth and more than minor pains, have distributed office locations that require access to systems and need ecommerce capabilities. Typical smaller company (under $50 million)  on-premises users are unlikely to move immediately from legacy systems without a significant pain factor.

Netsuite

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