SuiteWorld 2017: Hyper-growth in the cloud

growth city cloud
iStock_JaCZhou_growth
Robert Lovell
Managing Editor
AccountingWEB.co.uk
Share this content
Tags

Oracle and NetSuite are hatching a plan for global domination that will see “hyper-growth in the cloud”, according to Oracle chief executive Mark Hurd.

Speaking at the SuiteWorld 2017 conference in Las Vegas, Hurd tried to reassure NetSuite customers post-acquisition: “Our strategy is to invest in NetSuite,” he said.

Towards the end of last year Oracle closed a £7bn (US$9.3bn) deal to buy NetSuite.

Following the keynote Hurd said in a press briefing: “The whole crux of the strategy is to get the NetSuite growth rate up.

“We think there’s more business in the US and then we want to globalise as fast as we can. To do that we’ve created a separate business unit. Our strategy is to get NetSuite in the best possible position to go out to market,” he said.

Now branded as ‘Oracle + NetSuite’ Hurd said NetSuite was “a global business unit inside Oracle” but that it would continue to operate with independence while taking advantage of Oracle’s resources.

NetSuite executive vice president Jim McGeever, stepping into Zach Nelson's shoes, explained the new arrangenment in his keynote: “That means all sales, all services, all support, all development, is still contained inside a single business unit that all reports up to Evan and me. And we report up to the CEO of Oracle, Mark Hurd. And so for most people at NetSuite and most of our customers, there is almost no change whatsoever.

“All that’s really happened is that we have exchanged one set of public shareholders - who all they wanted from us was growth - for a set of shareholders, who also want growth. But they actually know what they’re doing and more importantly they have the resources to help us do it,” he added.

On the cultural differences between the two companies, NetSuite executive vice president of development and founder Evan Goldberg said the pairing was a good match:

“The roots of NetSuite are from Oracle,” Goldberg said. “It’s not like we’re an alien being. I think we can fit very well, especially since we’ve been given this opportunity to operate independently,” he added.

McGeever revealed the immediate expansion of the business unit into 13 countries, along with the establishment of several new data and development centres.

The company’s international growth strategy will be completed in two stages, both based on the speed at which it can complete a release cycle in each region.

First it plans to invest in Benelux, the Nordic states, Mexico, South America, Germany, Japan and Southeast Asia; and then phase two will see the company expand into China, India, Brazil, France and the UAE.

Goldberg said NetSuite always planned for international growth but had been held back by lack of resource.

He added that now with the backing of Oracle, NetSuite will be able to expand into verticals including retail, software and not for profit.

Hurd added that with the addition of NetSuite, ERP is now Oracle’s biggest pillar.

Oracle’s total cloud annualised run rate is US$5bn including 1,100-plus new SaaS customers and more than 900 expansions. It now has more than 13,100 SaaS customers; and 25,000 including NetSuite.

During day one of the conference McGeever also revealed two new product releases:

SuitePeople

SuitePeople is a new core HR offering built natively on NetSuite’s unified cloud suite and is being offered only as part of a bundle with the rest of NetSuite.

The product offers core HR capabilities as well as HR analytics, employee engagement, HR compliance, unified access and global reach.

SuiteSuccess

SuiteSuccess is NetSuite’s new unified cloud solution featuring domain knowledge, leading practices, KPIs and an agile approach to product adoption across a number of industry verticals.

NetSuite has built unique micro-vertical solutions to address specific market needs.

So far 300 customers have gone through SuiteSuccess.

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.