Running Your Business at the Speed of On-Demand · UCG Ltd. © Copyright NetSuite Inc., All Rights Reserved. ... • HQ in San Mateo, 9 offices worldwide • Largest integrated on-demand

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Running Your Business at the Speed of On-Demand

Presented by Zach Nelson, CEO of NetSuite Inc.

Software as a Service Goes Mainstream

© Copyright NetSuite Inc., All Rights Reserved.

Serving You Today:

Zach NelsonZach NelsonPresident & CEONetSuite

Bruce RichardsonChief Research OfficerAMR Research

Delwin Brockett COOUCG Ltd.


NetSuite: Fastest Growing Software Company in North America

1998: Founded by Larry Ellison & Evan Goldberg

Strategy: Deliver integrated business applications as online services

Results:• 500+ employees• HQ in San Mateo, 9 offices worldwide• Largest integrated on-demand customer base

The CPA Technology

Advisor

Technology Marketing

Corporation's

Best Software Service


Bruce RichardsonChief Research Officer

AMR Research


Today’s Agenda

Alphabet Soup: On Demand, SaaS or hosted? Single or multi-tenancy?

What’s driving demand for On Demand?

A closer look at market dynamics

Why NetSuite?


Our Definitions:

Hosted Applications – Broad term encompassing any software application deployed, served, or managed by a third party provider.OnDemand – Method of business process delivery such that business demand can be met dynamicallySaaS – essentially software delivered OnDemandMulti-tenancy – SaaS architected delivery model, where a single instance of the software and data model serves multiple consumers of the serviceSingle-tenancy – Like traditional ASP, software architected as traditional licensed software, where one instance of the software and data model serves a single customer.

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Multiple Options


Our 12 Market DriversToday’s buyers have a lower appetite for risk –more focus on proven, lower TCOIT departments have more projects than they can handleMoves software from a fixed to a variable cost –can scale up or down.Generates simplified user interfaces and data models – enables broader access by more users.Quick deployments. Considerably lower startup costs relative to license deployments. No shelfware.


Rounding Out Our List:

Frees up IT resources that would ordinarily be required to maintain a licensed application.Ability to scale to very small organizations with large enterprise functionality.Faster and more frequent upgrades often at little resource or financial burden.No Big Hardware costs.Moves maintenance back to the software vendor.Forces software providers to focus on customer success, rather than one-time license deals.


Market Adoption of SaaS:

13%Human Capital Mgmt

16%Supply Chain Mgmt

125%Sourcing/Procurement

60%CRM

300%ERP

Growth Rates: 2004-05Application Category

Source: AMR Research


A Closer Look at ERP:Ideal License Structure:If you could change your current ERP software license

structure, which would your company prefer to buy?

21%$10B+

20%$1B- 9.9B

12%$250M - $999M

39%$50M - $249M

6%< $50 Million% Selecting On DemandCompany Size (Revenue)

19%Total


Why NetSuite?

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Sales Representative


Warehouse Management


Controller Running Your Business at the Speed of On-Demand

Zach NelsonCEO

NetSuite, Inc.


The two most important shifts in business software the last 20 years are:

On Demand Software11


Why On Demand Is In-Demand

Dramatically lower cost of doing business

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On-Demand: Manage Your Business,Not Your Software

Manage it Yourself Style

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

On-DemandHARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION

Subscribe

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate







Predictable cost – well-defined TCO

Faster development cycles and innovation

Ends IT hassles & costs

Instant, anytime, anywhere access


The two most important shifts in business software the last 20 years are:

On Demand Software11

22 The Integrated Business Suite


Web Support

ERP

Sales

Before the Business Suite


Web Support

ERP

Sales

The Suite Is Now the Standard in Fortune 1000

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Small to Medium Enterprise

Accounting

SFA

Support

Web

Warehousing


NetSuite: Your Business On Demand

Marketing Campaigns

Sales Force Automation

Support Mgmt

Partner Mgmt

Order Mgmt

Financials

Inventory

Payroll

Purchasing

Shipping

VendorPortal

Customer Portal

Web Site

Web Store


What a Good Idea

MicrosoftBusiness Portal

Dynamics NVDynamics XPDynamics GPDynamics SL Dynamics NV

Dynamics XPDynamics CRM

Dynamics SL

CommerceServer

EcommerceManager

SupportManager

CEO

Sales Rep/ Manager

ShippingManager

CFO

The View From My Office

NetSuite in Action


Delwin BrockettCOO

UGC Ltd.


UCG Ltd. UCG is one of the nation's premier independent providers of business information. Known as a portfolio of business publishing companies that provide guidance, information, analysis, and solutions to customers worldwide.

Headquartered in Rockville, Maryland

Diverse product set – electronic access, databases, newsletter, directories, software, certifications, and conferences

Recently named by Washingtonian Magazine as one of the great places to work in the nation's Capital.

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The Business Issues25 years of organic growth plus more than 35 acquisitions

Operating the business became the focus of the business –rather than our customers, our products, and our markets

Had silo-ed around product and business unit distinctionsOperated from different physical locations Operations lagged an entrepreneurial environmentSolved the same problem too many times

Key Drivers

Address the legacyBetter know our own businessCreate an acquisition integration strategy without being overly burdensome or expensive to deploy


Requirements

Mid-sized does not mean simple!

Consolidated system to tie together the diverse business units, customers, and business information

Anytime, anywhere availability

Required flexibility

Separate businesses versus Consolidate reportsDifferent customer bases versus Leverage customersDiverse products versus Package offerings

UCG wants to understand its customers and serve its markets, not run IT!


Solving the Problem

Wanted an ERP footprint for seamless flow of information across all our business functions

Looked at on-premise solutions – but with the diversity of locations and businesses would have needed lots of infrastructure – cost prohibitive.

At the same time, looked at on-demand models and decided that they provided the better alternative

Easy deployments via the webAvailable anywhere, anytimeUser interface easily understood


The NetSuite Deployment

Started in January 2006

Branded program NetSuite e-360

Joint effort among COO, CFO, and Presidents of Business UnitsTeamed with NetSuite Professional ServicesCommunicate, Communicate, Communicate

By May 2006 had deployed:

The complete financial and accounting architecture for all business units and corporate consolidationsThe SFA and CRM components for one of our business units

1 down, 7 to go!


Value Derived: Intelligent Dashboards Reign!

First, derived value on transactional issues

From prospect through cash into renewals all within one system

Second, acquisition platform for quick integration

Consolidated financials into one systemTarget environment clearly defined

Biggest “WOW” moment, however, is in business intelligence and NetSuite’s dashboards

Clearly see where we’ve been and more importantly where we are goingSingle point of consistent information


e360 – Functions within UCG

Conferences & EventsConferences & EventsCampaign Management

&List Systems

Campaign Management&

List Systems

Centralized InformationCustomer InvoicingProduct Trouble TicketEmployees G/L, A/R, A/P, P/O

Centralized InformationCustomer InvoicingProduct Trouble TicketEmployees G/L, A/R, A/P, P/O

Customer Invoicing

Business Intelligence

Sales & Customer Service

Financial Operations

Customer Self Service

• Executive Dashboard • Consolidated Analysis• Single Data Source

• Business Unit Customized Invoicing

• Term Billing • Financial Operations• Accounting Operations• Employee Data

• Increasedcustomer satisfaction

• Decreased customersupport costs

• 360° Customer View

• Opportunity Management

• Sales Funnel

Net Suite

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Zach NelsonCEO

NetSuite, Inc.


Myth: Just CRM


Customers, even smaller ones, will never be willing to trust their core operational processes to an outsourced provider.

Shai Agassi, SAP, IDG News

“”


Myth: On-demand apps aren’t

customizable


On-Demand Customization

Traditional Software

Customization

Clicks before code

Industry standard javascript

Industry standard web services

Carries forward with upgrades

Customization encouraged

Straight to code

Proprietary programming language

Hard core integration

Breaks with upgrades

Customization discouraged

Rich Customization,

Doesn’t Break With Upgrades


Myth: Web-based User Interfaces

Aren’t as Productive

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© Copyright NetSuite Inc., All Rights Reserved. © Copyright NetSuite Inc., All Rights Reserved.

What All Businesses Need

Better, more effective end-to-end business processes management and visibility

Ability to make better, faster decisions

Reduce costs in non-strategic areas

Invest in differentiation


Discussion and Q&A


www.netsuite.com

Documents

Running Your Business at the Speed of On-Demand · UCG Ltd. © Copyright NetSuite Inc., All Rights Reserved. ... • HQ in San Mateo, 9 offices worldwide • Largest integrated on-demand