My previous company had begun using NetSuite OneWorld, so I was able to experience first-hand just how powerful a system it can be
San Mateo, Calif. (PRWEB) May 20, 2008
NetSuite Inc. (NYSE: N - News), a leading vendor of on-demand, integrated business management software suites for small and mid-sized businesses and divisions of large companies, today announced the release of NetSuite OneWorld Software Company Edition. This latest offering from NetSuite gives mid-market software companies the ability to run and manage integrated end-to-end software business processes spanning global operations--an industry-leading capability made possible through NetSuite technology that enables its integrated business suite to span the widest range of both front- and back-office applications. This new edition includes all the capabilities of NetSuite OneWorld (announced in April 2008), which enables multi-national companies to run global operations in real-time, and includes features specifically created to automate processes unique to software companies, such as renewals automation, revenue recognition, complex commission management and multi-tier channel management. For more details on NetSuite OneWorld Software Company Edition, please visit http://www.netsuite.com/software.
Running a software company is challenging due to complex and strict accounting and reporting requirements. To address these challenges, historically, many software companies have purchased multiple applications to run their software business operations: one to manage the sales team; one for commission management; one to manage financial processes such as renewals and revenue recognition, and yet another application for channel management. This fragmented approach typically is costly, can lead to a higher rate of errors in calculating financial results, and can result in less favorable customer experiences, particularly at the time of renewal. Once a company expands, particularly internationally, this mix of more expensive applications is often multiplied many times over, and can leave a company with very limited or delayed visibility into its operations and financial performance, especially across its multi-national operations. The lack of real-time visibility offered by this fragmented approach generally makes it difficult to drill down to local or regional-level information in real-time for timely course corrections.
NetSuite OneWorld Software Company Edition is one single application specifically designed for running a growing software business with global operations and can cater to any business model, from subscription billing to traditional software licensing. The capabilities of NetSuite OneWorld Software Company Edition are a result of best practices gleaned from the hundreds of software companies running their operations on NetSuite.
"With NetSuite OneWorld we delivered capabilities to mid-sized companies that some of the world's largest companies have failed to achieve after spending millions of dollars," said Zach Nelson, CEO of NetSuite. "Now with NetSuite OneWorld Software Company Edition, we are offering global mid-size software businesses the ability to integrate global consolidated financials in an integrated software suite that has been specifically tailored to meet the needs of software companies. We know how a global software company works because we are one, and we have been successfully using our own software to operate our business for the past 10 years."
"My previous company had begun using NetSuite OneWorld, so I was able to experience first-hand just how powerful a system it can be," said Ben Oxnam, Finance and Operations Director, ScanSafe (http://www.scansafe.com), the pioneer and leading provider of Web Security-as-a-Service, co-headquartered in London (U.K.) and San Mateo, Calif. "I'm very excited ScanSafe has chosen NetSuite OneWorld Software Company Edition for our growing SaaS company, which already has 100 employees on two continents. I can foresee how it will help us consolidate our worldwide operations and vastly improve our management information and reporting, and for a fraction of the cost of a comparable financial management system."
Easily Manage Multi-Company and Global Expansion in One System
The growth of today's software companies is often fueled by mergers, acquisitions and global expansion. With NetSuite OneWorld Software Company Edition, businesses are able to take this growth in stride and easily bring up new subsidiaries, both domestic and international. This is because of NetSuite's native SaaS delivery model that enables the OneWorld functionality to be accessed anywhere - simply by opening a Web browser - thereby eliminating the enormous IT issues associated with traditional approaches to global business management.
NetSuite OneWorld Software Company Edition delivers deep and locally / nationally appropriate functionality (currency, taxation, language, reporting, revenue recognition, dashboards, etc.) with real-time subsidiary management and business consolidation capabilities, while providing for instantaneous global roll-up, visibility and compliance management for front-office, back-office and ecommerce operations. With the benefit of consolidated data that NetSuite OneWorld Software Company Edition provides, the decision-making process within a business can be immediately improved with a plethora of pre-built metrics specific to software company operations. These can be tailored and personalized for role-based dashboards - from the executive at headquarters, to the in-country end-user.
Renewals Automation and Installed Base Tracking
Software companies have unique needs when it comes to managing renewals for their install base of customers and recurring revenue from renewals. For instance, the addition of user licenses in the middle of a contract term may require that the renewal process be able to handle multiple co-terminus models. In addition, uplifts based on historical or current list prices, revenue recognition and forecasting, and tracking of customer support entitlements, are all requirements to fully automate the renewal process for software businesses. To effectively automate the entire renewal process, NetSuite OneWorld Software Company Edition adds extensive installed-base tracking capabilities from multiple license types for systems, users, environments and modules, to maintenance agreements, customer support terms, start and end dates, contract statuses and monitoring of end-of-life, upgrades and downgrades. As a result of this extensive tracking, software companies gain the benefit of license term metrics such as customer retention and current license metrics that can be tracked in real-time on role-based dashboards.
Align Sales with Corporate Goals with Complex Commission Management
Incentive compensation for software sales organizations generally involve complex, multi-tiered commission management plans and include various spiffs or kickers to align sales team behavior with corporate goals. Additionally, wasted time, energy and multiple spreadsheets can often lead to challenges as to how the commission payouts should be calculated. NetSuite OneWorld Software Company Edition includes updated commission management reports that make it very clear to both sales and finance what the compensation should be and which sales transactions were applied to arrive at the final numbers. NetSuite OneWorld Software Company Edition also adds the following new capabilities in how commission management is structured:
- Quota attainment vs. payout flexibility -- If new customer acquisition is key to a software company, the company will value the ability to set up commission for its sales team that compensates for attainment of the total quota on all sales, but then pays out based only on new business sales.
- Managing debooks and rebooks -- With the dynamic, ever-changing nature of the software business, it is important to be able to manage the sales effective date when processing credit transactions such as return authorizations, credit memos and cash refunds. This ensures that as commission plans change from quarter to quarter or year to year, debooks and rebooks that span these time periods are accurately calculated with clear visibility to the sales rep on the impact to their final commission totals.
- Commission on shipping - These persuade sales reps to use their preferred shipping carrier and shipping method when sending software CDs, training manuals or other goods by setting up extra commission for a particular shipping item such as UPS Ground vs. FedEx Overnight.
Easily Track External Sales Efforts with Multi-Tier Channel Management
More and more software companies leverage external sales channels to grow their business. NetSuite OneWorld Software Company Edition allows for management of multiple tiers of sales channels from distributors to resellers to end-user referral programs with enhanced channel management reports, interaction management, industry-specific transaction forms and electronic fulfillment of indirect, end-user sales. With multi-tier channel management occurring in the same system as direct sales channel activities, software companies get an unprecedented view of sales, forecast and pipeline across all of their sales channels so they are able to effectively report on their numbers and course correct as needed to meet sales expectations. For a public software company, this visibility is critical to consistently meeting or beating the revenue guidance given to Wall Street.
Pricing and Availability:
Available now, NetSuite OneWorld Software Company Edition begins at a base price of $4,998 per month, which includes renewals management and multi-tier channel management functionality, along with vertical-specific Dashboards and best-practices. Commissions functionality (Incentive Compensation) is an add-on module at $299 per month.
NetSuite Inc. is a leading vendor of on-demand, integrated business management software suites for small and midsized businesses. NetSuite enables companies to manage core business operations in a single system, which includes Accounting / Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Ecommerce. NetSuite's patent-pending "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If any of these risks or uncertainties ever materialize or these assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to expectations, plans and prospects for NetSuite and its service offerings that are based upon current expectations and beliefs. Challenges may arise in the implementation of NetSuite OneWorld Software Company Edition with customers; disruptions in service as a result of loss of power or loss of Internet access may occur; unexpected disruptions in NetSuite's data center may occur; NetSuite may experience material defects or errors in its software, undetected computer viruses, or a security breach; and other risks and uncertainties exist or may arise as described more fully in our public announcements filed with or furnished to the U.S. Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008. All forward-looking statements in this press release are based on information available to us as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.