Oracle, a major software firm offering cloud-based business applications, recently made headlines when they announced they had acquired NetSuite. This acquisition will benefit NetSuite customers while making Oracle even more successful in cloud space.
Oracle customers, particularly SMBs, should benefit greatly from this merger as NetSuite will focus on its existing industry segments while Oracle serves the enterprise market.
What is NetSuite?
NetSuite is a business management suite that integrates all aspects of a firm’s operations – finance, supply chain management, HR processes, manufacturing and ecommerce. As a cloud solution it enables firms to control all their operations from a central database without using multiple software systems for administration.
Oracle’s acquisition of NetSuite was an intelligent move designed to expand their cloud revenue base while giving NetSuite access to new vertical markets and increase revenues.
By joining forces, Oracle and NetSuite will be able to deliver an exceptional cloud ERP platform for their respective customers. In addition, both companies will leverage Oracle’s extensive partner network for selling and delivering NetSuite solutions.
Additionally, this acquisition provides both organizations with a protective barrier in their fastest growing business lines and gives each of them essential resources and capabilities to better serve their clients effectively.
Why did Oracle purchase NetSuite?
Oracle purchased NetSuite to expand their cloud offerings. As more of their clients migrate towards cloud services, Oracle saw NetSuite as an opportunity to offer an ERP system specifically built on cloud technology as an ERP option for them.
Purchase also gives them access to smaller companies who would have been difficult to serve before acquisition; this will enable them to expand their presence in the SMB market and give them an edge against Salesforce.
NetSuite was initially founded as NetLedger in 1998, providing web-hosted business management software to small and midsize companies. Larry Ellison of Oracle seeded start-up funds into NetSuite’s development.
Soon enough, they had amassed an enormous following and were quickly making millions in profits. Soon thereafter, they merged with Oracle and turned it into a global business; it has proven to be an incredibly wise decision as they leverage Oracle’s infrastructure, local contacts, and localization expertise across many markets to expand rapidly.
What are the benefits of NetSuite?
NetSuite is an ERP (enterprise resource planning) solution with a comprehensive set of features and functionality, featuring its cloud-first model for easy access and management of key business information anytime from any location worldwide.
Businesses from different industries such as financial services, healthcare, retail, distribution and professional services can utilize it, with features including accounting and financial management, CRM (customer relationship management), e-commerce inventory management human resource automation and professional services automation all available as modules within its platform.
Integration with other systems allows companies to access and analyze more comprehensive data sets, providing greater market insight and customer preferences that ensure continued success for them.
NetSuite features include contact and lead management, sales forecasting, opportunity management, account management and analytics – features which enable companies to streamline and automate their sales and marketing processes while improving customer service by enabling employees to access customer records, thus streamlining team collaboration and making decisions more easily.
What are the drawbacks of NetSuite?
Oracle NetSuite is an ERP solution that assists businesses in automating their accounting and other business processes, such as inventory management, financial consolidations and customer relationship management (CRM). The software features modules for inventory control, consolidations and customer relationship management (CRM).
Human Capital Management solutions from SAP also enable organizations to maximize human capital efficiency by offering various functionalities that improve talent search, employee evaluation and other HR processes. Furthermore, SAP Business One also includes warehouse management and fulfillment capabilities for controlling inbound and outbound logistics processes for businesses.
The software’s multicurrency feature assists users in efficiently managing global business finances and sidestepping currency exchange issues, supporting over 190 currencies with real-time currency conversion rates being calculated in real-time.
However, this feature requires dedicated employees who can code adjustments as well as a large budget to cover customization costs – something which makes Oracle NetSuite more suitable for larger organizations than smaller organizations.
Software requires both a one-time implementation fee and an annual license fee, the latter of which depends on your company size and the modules required.