Oracle and NetSuite file reports with the Securities and Exchange Commission (SEC). These filings identify key factors that could cause actual results to differ materially from forward-looking statements.
Oracle believes the acquisition of NetSuite will allow it to compete more effectively in the cloud space and advance its own cloud capabilities, as well as better serve customers across a range of industry segments.
Oracle’s Vision for NetSuite
As Oracle attempts to compete with modern software providers, it has sought ways to adapt. One such measure was its acquisition of NetSuite which offers cloud-based solutions for various business functions.
Oracle appears to be an ideal match in terms of customer base and solution set, and this agreement should provide access to companies which may be slightly smaller than its usual clientele and help it compete against primary rival Salesforce more effectively.
However, in order for this acquisition to pay off, NetSuite must continue its rapid growth rate and outshone competitors without jeopardizing Oracle’s market share or slowing its SaaS business’s development rate. FORBES believes it is possible. The transaction is expected to close early 2017, and this document contains forward-looking statements about Oracle’s acquisition of NetSuite and related financial results, and their anticipated customer benefits. These statements involve certain risks and uncertainties, including the ability to close an acquisition on time, competition factors and general economic conditions in regions where Oracle and NetSuite do business and any other important considerations.
The Benefits for Customers
Oracle’s purchase of NetSuite solidifies their position as a leader in cloud enterprise resource planning (ERP) software solutions, such as accounting and customer relationship management (CRM). NetSuite, known for their expertise in omnichannel commerce software is also seen as a leader.
Oracle expects the deal to close before the end of 2016 as expected and represents their second largest acquisition and biggest purchase ever made.
Oracle will benefit from direct competition with Salesforce in the SMB market, an integral part of their strategy. In addition, their capabilities in cloud environments such as analytics and big data will be further strengthened.
Customers of both companies will see benefit in this deal, including improved products, superior integration and firm financial footing thanks to this acquisition. Plus, both will have more resources for investment – exactly what customers desire and require!
The Benefits for NetSuite’s Employees
Change of ownership for firms like NetSuite can have devastating repercussions for its existing customer base and employees, including forced conversions of customers to new owner products; all-new product roadmaps that delay or postpone many expected features; as well as significant price hikes without increased functionality, service, or value.
NetSuite has taken advantage of Oracle’s global infrastructure, local business contacts and localization knowledge to accelerate their expansion in China where they had only minimal presence pre-deal. They’ve also leveraged Oracle’s sales training and mentoring programs.
NetSuite will gain significant advantages by accessing Oracle’s CPQ technology, giving them native configure, price and quote (CPQ) capabilities that will simplify selling cloud solutions such as Oracle Field Service SaaS and Service Cloud to their customers. In addition, this acquisition will expand their field service offerings with TOA Technologies’ leading field service software for home and facility-based customer service.
The Benefits for NetSuite’s Partners
NetSuite gives Oracle access to a large customer base in the mid-market segment, representing an incredible opportunity for expanding cloud revenue growth.
Supply Chain 24/7 believes the key to the successful implementation of Oracle’s acquisition of NetSuite will lie in their ability to develop an articulate plan for fulfilling business applications moving forward. This strategy should help both parties determine which types of solutions should be added or expanded upon within Oracle’s portfolio and provide current NetSuite customers with a roadmap towards realizing their cloud-first plans.
As with any acquisition, there are risks and uncertainties associated with Oracle/NetSuite’s merger. These may include risks such as the transaction not closing as anticipated; expected synergies of combined companies not materializing; general economic conditions affecting regions where either firm operates; etc. For further discussion of these and other risks please see their respective SEC filings of Forms 10-K, 10-Q and 8-K.