Day 2 of SuiteWorld 2017 has been renowned for it’s fantastic opening display and that’s exactly how this year started. An opening display from a rapper performing an ERP related piece whilst an aerial shot of New York plays in the background. “Next starts now, the best starts now, everybody stand up, let the rest stand down.” was followed by a Haka from the Māori culture. It’s certainly one way to introduce executive vice president of NetSuite Jim McGeever, a war cry to competitors perhaps?
With all the theatrics out the way, Jim wasted no time thanking all of the fantastic sponsors which make SuiteWorld possible and ensure the annual event keeps growing. Here are the key takeaways from the executive keynotes.
Addressing the elephant in the room
The biggest talking point and change over the past 12 months has been Oracle’s acquisition of NetSuite which may have left a few solution providers, customers and investors apprehensive to say the least. Jim managed to do what all great leaders do and ease the minds of many with a few simple words.
Oracle is in love NetSuite, no I mean Oracle bought Net… they were so much in love they bought NetSuite
NetSuite is now a global business unit inside of Oracle which means all sales, all services, all support and all development is still contained within a single business unit. This means there has been almost no changes to the way in which NetSuite operates as a business, nor has it affected how NetSuite’s staff and customers act. People who use NetSuite, provide it or are customers will still deal with the same people and NetSuite still has the same partner network, the same professional services people and there has been minimal changes since the $9.3 billion acquisition back in November.
After addressing the proverbial elephant, Jim introduces someone bigger into the room (Metaphorically bigger anyway) as Mark Hurd the CEO of Oracle address a packed out venue.
Before anything Mark thanks the 40,000 different companies using NetSuite for making the cloud based service so special. The IT industry is around $2 trillion with the world economics at $75 trillion meaning IT itself accounts for nearly 3% of the world wide economy. Of that $2 trillion the cloud industry only occupies 5% with it being valued at $50 billion however the growth rate of the cloud is now 50% whilst on-premise growth is declining.
The main reason why the cloud is growing at the expense of on-premise solutions is because it costs less which allows businesses to invest with less overheads and risk. The cloud is more scalable and cloud users can get new updates/features at a pace on-premise can’t compete with. Mark firmly believes the cloud will dominate the IT market for the next decade with 70-80% of the market making the switch to the cloud.
We didn’t invest $9.3 billion to disinvest in the business. We spent that money to invest
One of the most notable things Mark says is Oracle hasn’t spent the sum they have to leave NetSuite stagnant in the cloud market, they’ve acquired NetSutie to revolutionise Oracle’s own 10 year march to the cloud as well as improving NetSuite as a core product. As a result Oracle + NetSuite has seen increased growth since the acquisition with a best of breed strategy and best of breed application being the main aim.
The acquisition has also allowed Oracle to become the fastest growing cloud company, exceeding Salesforce, Amazon Web services and Microsoft. The overall aim is to set the new standard for customer delight in cloud and ERP whilst maintaining a strong partner ecosystem which NetSuite has built over the years. Oracle want to provide NetSutie with all of the all of the benefits of their scale and remove the encumbrances of Oracle’s bureaucracy, allowing NetSuite to lead the market for cloud based business solutions.
Oracle are planning to accelerate NetSuite’s global expansion and are aiming to ensure they do this as fast as possible. The plan to globalise NetSuite will allow them to utalise Oracle’s datacentres, technology and research & development budget which is set to increase from the $5.2 billion already invested.
Before leaving the stage Mark takes a couple of questions and one that sticks out is “Can you help us partners go after the SAP marketplace?”. After explaining what SAP is, the marketshare by location and overall, his brilliant final response is “We will do everything in our power short of illegal to help you take marketshare from them (SAP)” .
As Jim McGeever comes back to the stage the focus has shifted from Oracle’s acquisition or Netsuite’s mass global expansion. With budgets approved, Netsuite are set to launch in 13 different countries.
NetSuite will also be launching new datacentres around Asia, Germany and America as well as leveraging 4 Oracle development centres in South America and Asia. To do this they will hire more employees in 2018 than they had total employees in 2012 with a large scale recruitment drive, boosting staff and capabilities like never before. This will allow for more partnerships, products and country/language support.
As NetSuite is growing globally so too is it’s customer base, whereas before the focus was on mid-market enterprises the shift will allow NetSuite to suite any company of any size in any country and any vertical. There is no strategy to transition larger NetSuite customers to Oracle or when a customer experiences growth of an accelerated rate, to force them to make the switch to Oracle. NetSuite will be available to any company that needs it.
The Cloud Won
Barring one, every on-premise application has changed their business model to mirror NetSuite. With the rapid growth of the cloud and how the cloud has changed the way business operate, investors no longer want to get involved with on-premise products and are more willing to invest in cloud based solutions.
NetSuite was founded to solve the original on-premise “hairball” and because of this, it has continued to lead innovation with cloud based applications. However now the hairball is cloud based with companies having several cloud products which can’t communicate with one another, making it difficult to maintain business operations.
It’s because of this NetSuite has always focused on a single data source, all business operations running from the same platform and being able to communicate, allowing for ease of operations. Integration with NetSuite partners and now Oracle’s products will allow for NetSuite to manage more operations than ever before but Jim believes there has always been something missing. Introducing…
SuitePeople is the worlds’ most unified and flexible human resources system ever built! Evan Goldberg will be demoing SuitePeople later during SuiteWorld but the teaser (can be seen at 54:00 in the video below) shows how it can build a more engaging workforce right from the NetSuite dashboard. In an example it shows who is off from work for whatever company and how it can pick up on an employees daily tasks which won’t be complete. This then allocates this to another user or notifies them to let them know certain order may not be processed or picked up.
This is a fully unified module and can only be used with NetSuite, as a standalone system it just doesn’t work. SuitePeople plans to provide core HR capabilities, HR analytics, employee engagement, HR compliance, global reach, flexibility and it is designed to be as user friendly as possible meaning little to no training will be required.
The best bit about SuitePeople? It’s already be tried and tested for several months and by multiple companies. This will be released for all on the 1st June 2017, little over 1 month from the time it was announced.
SuiteSuccess is the worlds’ first unified industry cloud solution and it’s already live! This is not “yet another rapid implementation model” as Jim explains. SuiteSuccess is the result of 20 years industry leading practices condensed into a single solution. It was engineered to solve industry specific problems with a unified approach.
NetSuite has built micro-vertical solutions to address specific market needs and SuiteSuccess already has over 300 unique customers and is expanding into more industries.
The average SuiteSuccess customer will be able to go live 60% faster and with an 18% decrease in implementation costs. The first instance of this was launched in the wholesale distribution vertical back in January 2016 and on average, a SuiteSuccess account loads 66% faster than any other. As Jim says “when you standardise you can optimise”
Bill Tingle the CIO of PODs can vouch for SuiteSuccess and joins Jim on stage to speak about how it has helped their business and how fast it was to go from 0 to the cloud. The average on-premise ERP implementation process can take 6-9 months and after Bill had done his market research, NetSuite became the only viable option for their business.
Don’t Just Take NetSuite’s Word For It
After Jim has finished, vice president of commerce products Andy Lloyd takes to the stage to speak about OmniChannel. Introducing the CEO of Journelle, Lyn Lewis and the CEO of Rally House, Aaron Liebert join Andy to speak about how NetSuite has improved their business operations.
Journelle is leading the line in luxury lingerie with multiple stores and a thriving eCommerce store. NetSuite has not only allowed their new CFO to close their end of month books but their CFO was able to learn and use NetSuite after only 2 weeks at the company. The biggest benefit NetSuite has offered Journelle is the ability to reduce their stock quantity but improved their SKU coverage.
Aaron from Rally House has been able to launch 17 new stores as well as giving them the ability to manage all of their stock from within their stores. This has instantly reduced costs in the supply chain but helped their stores keep stock in store and display a true reflection of stock online.
After 2 fantastic customer recommendations, Jason Maynard the senior vice president of strategy and marketing comes on to introduce another customer case study as well as boasting the fact NetSuite has the worlds best advanced revenue management capabilities.
Relive the action yourself
Whilst the live stream isn’t available from NetSuite as yet, you are able to watch a recording of the executive keynotes below!