NetSuite

NetSuite Inc.
Subsidiary of Oracle Corporation
Industry Computer software
Founded California (1998)
Headquarters San Mateo, California, United States
Key people
 Zachary (Zach) Nelson (CEO)
Evan Goldberg (Chairman / CTO)
Lawrence (Larry) J. Ellison Stakeholder
Services Cloud-based business management platform
Revenue Increase US$741.1 million (2015)[1]
Decrease (US$115.6) million (2013)[1]
Decrease (US$124.7) million (2015)[1]
Number of employees
 4,603 (December 2015)[2]
Website www.netsuite.com

NetSuite Inc. is an American cloud computing company based in San Mateo, California, that sells a group of software services used to manage a business's financials, operations and customer relations.[3] NetSuite's services are aimed at small to medium-sized businesses, although larger enterprises can also benefit from the consolidated ERP, CRM and e-commerce features.[4] Oracle Corporation offered to purchase NetSuite for approximately $9.3 billion USD in July 2016, with the deal finalizing in November 2016.

History

NetSuite was founded in 1998 by Evan Goldberg as NetLedger, web-hosted accounting software. Oracle licensed the software under the banner of The Oracle Small Business Suite for a short time before that was cancelled.[5] NetSuite is widely seen as the first cloud computing software company, with the company’s 1999 founding pre-dating that of Salesforce.com by about a month. Goldberg was the chairman and chief technology officer up until the Oracle acquisition.[2]

In July 2002, Zach Nelson was appointed CEO.  Nelson had deep background in sales and marketing, holding a variety of executive positions at Sun Microsystems and Oracle Corp.  Prior to joining NetSuite, Nelson ran an early provider of business applications over the Internet called MyCIO.com, a division of McAfee Corp.[6]  This experience led him to the belief that all software would be delivered over the internet, and he left McAfee to join NetSuite.  Nelson led the company from about $1 million in revenue to a billion-dollar run-rate prior to its acquisition by Oracle Corp.[7]

On January 4, 2007, NetSuite named Moneyball General Manager Billy Beane of Major League Baseball's Oakland A's to its board of directors. Evan Goldberg cited Beane's ability to combine facts with instinct as an important factor in the decision to involve him in the company.[8]

NetSuite became a publicly traded company after its initial public offering (IPO) of 6.2 million shares on the New York Stock Exchange in December 2007.[9] Though NetSuite has shown a 149% increase in revenue in the five-year period from 2009 to 2014 [10] it has incurred annual operating losses since inception.[2]

NetSuite had 2,550 employees as of March 31, 2014, a 31% increase over March 31, 2013, when it had 1,953. One quarter of its employees are based in its Philippine office. NetSuite has additional offices in Denver, Las Vegas, Austin, Chicago, Atlanta, New York, Boston, Toronto, the UK, Spain, the Czech Republic, Japan, Hong Kong, Singapore, Australia and Uruguay.[2]

On July 28, 2016, Oracle announced it had offered to purchase NetSuite for $9.3 billion USD. The deal faces intense scrutiny because Oracle founder, Larry Ellison, owns nearly 40% of NetSuite. This conflict of interest has led the board of both companies to establish independent committees to review the deal from the perspective of independent shareholders. Some major NetSuite shareholders, such as T. Rowe, have notified Oracle they will not be tendering their shares under the current terms of the proposed deal. In early October 2016, Oracle extended the deadline for shareholders of NetSuite to tender their shares to November 4.

Relationship with Oracle Corporation

Even prior to the July 28, 2016 announcement that Oracle Corporation would acquire NetSuite Inc., the two firms shared a close relationship.[11] Both founder Goldberg and CEO Nelson worked at Oracle Corp. prior to forming NetSuite.[12][13]  Goldberg joined Oracle immediately after graduating from Harvard College in 1987, and held a variety of positions in R&D. Nelson joined Oracle in 1992 as Vice President of Marketing, ultimately working directly for Larry Ellison.

In 1998 Evan Goldberg received approximately $125 million in initial financial backing from Larry Ellison,[14] founder and chief executive officer of Oracle Corporation through Ellison's venture capital entity Tako Ventures.[15] Other initial investors were StarVest Partners[16] ADP and UBS PaineWebber.[17] The NetSuite software also relies on database software licensed from Oracle.[18]

Ellison and family members own approximately 47.4% of NetSuite's common stock as of December 31, 2014. The firm's 10-Q filing on March 2, 2015, states that "Mr. Ellison is able to exercise control over approval of significant corporate transactions, including a change of control or liquidation."[19]

Products

NetSuite groups its services into four main suites plus NetSuite OneWorld:

Acquisitions

Awards

See also

References

  1. 1 2 3 "Form 10-K for NETSUITE INC".
  2. 1 2 3 4 http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11205201-10390-62001&type=sect&TabIndex=2&dcn=0001117106-16-000050&nav=1&src=Yahoo. Missing or empty |title= (help)
  3. ↑ Hardy, Quentin (May 15, 2012). "NetSuite Moves to ‘Commerce as a Service’". The New York Times. Retrieved October 30, 2015.
  4. ↑ Hardy, Quentin (May 13, 2014). "NetSuite: Enterprise Software Still Follows a Manufacturing Model". The New York Times. Retrieved October 30, 2015.
  5. ↑ "ERPsoftware360".
  6. ↑ Clancy, Heather. "Disruptor | Zach Nelson, CEO, NetSuite | ZDNet". ZDNet. Retrieved 2017-05-02.
  7. ↑ "E718: NetSuite CEO Zach Nelson on building to $1b run rate, early days at Oracle, McAfee & Sun, pioneering enterprise, prioritizing sales, going public, the CEO’s toughest job & the future of employment | This Week In Startups". thisweekinstartups.com. Retrieved 2017-05-03.
  8. ↑ "Billy Beane takes seat on NetSuite board". San Francisco Business Times. January 4, 2007. Retrieved August 2, 2012.
  9. ↑ "NASDAQ - NetSuite Inc. (N) Prospectus". Retrieved September 1, 2014.
  10. ↑ "The Wall Street Journal's MarketWatch, NYSE Sybol "N"".
  11. ↑ Jing Cao,Brian Womack. "Oracle Purchase of NetSuite Will Help It Vie With Cloud Rivalss". bloomberg. Retrieved 31 July 2016.
  12. ↑ "Larry's Kids". Inc.com. 2017-02-01. Retrieved 2017-05-04.
  13. ↑ Hardy, Quentin; Picker, Leslie (2016-07-28). "Oracle’s $9.3 Billion Deal for NetSuite Will Bolster Its Cloud Offerings". The New York Times. ISSN 0362-4331.
  14. ↑ "Seeking Alpha - Larry Ellison's Investment In NetSuite: Conflict of Interest?".
  15. ↑ "The Register - Ellison's NetSuite still not making money".
  16. ↑ "Starvest Partners Portfolio, NetSuite".
  17. ↑ "The Internet Retailer - NetLedger Inc. Changes Name to NetSuite Inc.".
  18. ↑ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 14.
  19. ↑ "NETSUITE INC (N) 10-K filed 3/2/2015". p. 17.
  20. ↑ "PC Magazine - NetSuite ERP".
  21. ↑ "Netsuite Profile". In Marketing We Trust. Retrieved June 26, 2015.
  22. ↑ "NetSuite Website".
  23. ↑ "NetSuite Website".
  24. ↑ "CNET - NetSuite Finds A Sweet Spot with OneWorld".
  25. ↑ Schonfeld, Erick (June 2, 2008). "NetSuite Buys OpenAir For $26 million". TechCrunch.
  26. ↑ "NetSuite Acquires Retail Anywhere, Adding Key Capabilities To Support Multi-Channel Retail Success". PR Newswire. January 10, 2013.
  27. ↑ Hesseldahl, Arik (October 22, 2013). "NetSuite Acquires HR Software Player TribeHR". AllThingsD.
  28. ↑ "Element Fusion, the Creator of LightCMS, Joins Forces with NetSuite". LightCMS Blog. March 13, 2013.
  29. ↑ Gagliordi, Natalie (July 17, 2014). "NetSuite acquires Venda to boost omnichannel efforts". ZDNet.
  30. ↑ Bond, Josh (July 1, 2015). "Top 20 supply chain management software suppliers, 2015". Modern Materials Handling. Retrieved October 29, 2015.
  31. ↑ Ohnesorge, Lauren K. (April 23, 2015). "Durham-based Bronto Software to be Acquired in $200M deal". Triangle Business Journal.
  32. ↑ Ohnesorge, Lauren K. (October 22, 2015). "NetSuite CEO: Bronto acquisition turning out 'better than we expected'". Triangle Business Journal. Retrieved October 29, 2015.
  33. ↑ "Most Innovative Growth Companies". Forbes, June 2014
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.