In 2016, Oracle made a landmark announcement: they would acquire cloud ERP provider NetSuite. With this acquisition, Oracle could serve an increasingly wide range of customers, expand its global reach and accelerate their foray into cloud computing.
While competitors have been offering one-size-fits all solutions, Oracle is looking to meet a variety of needs by providing different platforms tailored towards specific business requirements. This way, customers can pick the most suitable platform for their particular requirements.
What Will the Acquisition Mean for Customers?
Oracle’s acquisition of NetSuite marks an important milestone in Oracle’s quest for more cloud revenues, but it also presents a major setback to NetSuite shareholders and the company’s financial health.
One of the key concerns for Oracle customers is how the company will position its five competing products – Oracle EBS, JD Edwards, PeopleSoft and Oracle Cloud (not to mention Open Air, a professional services solution acquired five years ago by NetSuite).
Customers should inquire how Oracle plans to support two-tier ERP scenarios, which are common among small and midsized businesses, helping competitors such as SAP and Oracle compete against one-size-fits all ERP offerings from Oracle and others.
Oracle sales reps may be taught to sell all these products, rather than having separate teams for each. However, this will prove costly for the company.
How Will the Integrations Work?
At Oracle’s acquisition of NetSuite, they took great care to leave NetSuite unharmed. As a result, NetSuite has been able to grow by taking advantage of Oracle’s scale, capital investment, R&D capabilities, global sales presence and other resources.
Oracle has also leveraged NetSuite’s technology to further enhance their own cloud software portfolio, leading to increased customer acquisition and market share in the burgeoning cloud ERP space.
Recently, NetSuite CEO Evan Goldberg told ComputerWorld that Oracle’s investment has enabled his company to achieve several benefits since acquisition. These include a more aggressive growth strategy, enhanced product development, and an emphasis on providing solutions for fast-growing mid-market companies.
NetSuite customers will now have access to a more comprehensive suite of cloud-based ERP and CRM capabilities. These integrations make it easier for companies to manage omni-channel customer engagement while decreasing costs and increasing revenue.
What Will NetSuite’s Future Look Like?
NetSuite was established in 2007 as an ERP software solution to assist businesses with complete business management. It provides a scalable platform that enables companies to monitor all aspects of their operations, from accounting and financial management to customer relationship management (CRM) and inventory control.
Automation also offers the advantage of automating processes such as order processing and invoicing, which increases efficiency and accuracy while producing cost-effective outcomes.
The system also features built-in analytics, allowing users to transform data into reports and insights. By taking advantage of these, business leaders can enhance their performance and accelerate revenue growth.
Furthermore, the system has robust security components that guarantee business uptime. These include mirror systems, disaster recovery, failover and backups.
NetSuite boasts 33,000 customers and boasts an incredibly robust ERP system that can be tailored to fit your changing requirements. As such, it is the ideal choice for companies seeking to expand rapidly with minimal disruption to their operations.
What Will NetSuite’s Market Share Look Like?
NetSuite is a cloud-based enterprise resource planning (ERP) software company that offers an expansive suite of business applications. It competes for customers with industry giants like Microsoft, SAP, and Salesforce for business software users.
Oracle Corporation’s primary competitive advantage lies in its cloud-based software offerings and financial stability. Furthermore, its partner ecosystem helps it stand out from competitors.
Due to this strategy, it has been able to secure large amounts of recurring revenue from its customers. This has driven its rapid growth and enabled it to become one of the fastest-growing ERP companies globally.
NetSuite’s market share is likely to increase over time as more businesses migrate their existing ERP systems into the cloud. However, this may not be enough to offset Oracle’s acquisition of NetSuite’s revenue.