Oracle’s acquisition of NetSuite marks another step towards modernizing itself for cloud computing, helping the company reach new customers and strengthen its position on the market.
Oracle sees this deal as an opportunity to further hone its Oracle Fusion financial management capabilities and meet growing customer demands for on-premise ERP systems as they near their expiry.
1. NetSuite’s SaaS model
Oracle’s acquisition of NetSuite marks its transition away from licenses and maintenance contracts toward cloud subscriptions, giving Oracle access to an increasingly lucrative SaaS market for large SMBs who have embraced cloud solutions.
NetSuite is a leading integrated cloud business software suite for enterprise resource planning (ERP), helping organizations manage inventory, track finances and host e-commerce stores while also managing customer relationship management systems.
Software like ASC 606 compliance supports companies’ growth strategies while helping ensure compliance. Furthermore, SaaS businesses require complex business processes like subscription management and customer support in order to operate effectively. This software offers valuable support.
NetSuite’s cloud-first ERP model makes it an ideal match with Oracle. NetSuite will bring strong ERP offerings and help penetrate mid-market customers – key elements for future growth.
2. NetSuite’s customer base
NetSuite is an established cloud accounting and ERP provider with more than 30,000 customers worldwide, recently unveiling an omnichannel commerce software suite to assist retailers manage inventory, customer data and orders more easily.
Oracle’s acquisition of NetSuite is an innovative strategy to expand their customer base and enter the fast-growing software-as-a-service market. Furthermore, this move will allow Oracle to focus on enterprise solutions while NetSuite addresses SMBs.
Oracle’s acquisition of NetSuite will likely boost NetSuite sales and growth prospects by giving it the ability to compete against Salesforce and other leading SMB software providers, but will put additional strain on Oracle’s already overburdened sales force.
Oracle is making a strategic bet to adapt itself for the current age of cloud computing, which has transformed all software industries. Through the merger, the combined company will gain access to Oracle’s customer database, partner network and resources necessary for developing and selling cloud software products.
3. NetSuite’s technology
NetSuite’s cloud ERP business management suite unifies core business processes like financials, CRM, e-commerce, inventory control, human resources automation and professional services into one platform – and has been utilized by over 34,000 fast-growing businesses globally.
Companies operating within the technology industry require an ERP system that is both integrated and scalable enough to accommodate rapid expansion. This enables them to gain visibility into their performance while streamlining business operations.
Oracle acquired NetSuite in November 2016, and since then has expanded it as an individual business unit. Being cloud-based, NetSuite eliminates the need for on-premise systems while offering easy use at an economical price point for growing companies.
NetSuite goes beyond its robust accounting functionality to offer SaaS businesses powerful revenue recognition management features that simplify revenue recognition management, saving them both time and effort in manually resolving revenue recognition issues manually. Plus, the features help ensure compliance with ASC 606 standards.
4. NetSuite’s financials
NetSuite offers a powerful financial management system to assist businesses in efficiently and accurately running their finance operations. The software automates processes like bank reconciliation, asset management and revenue management for smooth business operation.
Budgets and forecasting also benefit greatly, enabling accountants to make data-driven decisions that benefit both their company and reduce cycle times.
Software licensing includes both the core platform and optional modules, giving users flexibility in expanding their business as it grows; plus the pricing model is extremely accommodating.
NetSuite stands out among enterprise software solutions by being easily scaled, making its implementation less disruptive to large organizations with multiple assets and locations.
Financial reporting platforms also help global businesses that use multiple currencies, languages and tax laws manage all their finances in one central place and make meeting reporting obligations simpler.