NetSuite CEO explains why new Oracle cloud relationship makes sense

Summary:NetSuite's use of Oracle's cloud "brings a technology stack that would be unaffordable" to most smaller to mid-size companies, says CEO Zach Nelson.

Oracle's big week continues as company president Mark Hurd held a joint conference call with NetSuite CEO Zach Nelson on Wednesday afternoon.

See also Salesforce.com, Oracle partner in cloud Oracle-Salesforce partner: 10 (mostly shocked) reactions | Oracle's master stroke: Boxing, locking Salesforce in

The Silicon Valley giants are joining forces on a new scheme to deliver HCM and ERP cloud services, connecting HR and finance systems, to mid-size businesses on one unified platform.

Essentially, the package deal will be comprised of services from Oracle's HCM Cloud (i.e. HR and talent management) and NetSuite's Cloud ERP solutions for sales, financials and fulfillment.

During the call, Hurd argued that HR is typically the "least served" when it comes to receiving these newer services and the "IT dollars" needed to subscribe to them.

Nelson posited that there's a lot of talk about which companies have the cloud and don't have the cloud, but he stipulated "there is no confusion" about the first cloud company.

"The cloud started with NetSuite," Nelson asserted, describing that today's announcement is a "reflection of maturation for mission-critical business applications."

"The cloud started with NetSuite," Nelson asserted, describing that today's announcement is a "reflection of maturation for mission-critical business applications."

He continued on to say that NetSuite was founded based on two big ideas: bring large enterprise systems to small and mid-size companies, followed by delivering these apps over the Internet.

Nelson added that NetSuite's use of Oracle in this regard "brings a technology stack that would be unaffordable" to most smaller to mid-size companies.

Hurd stressed the closeness of the Oracle-NetSuite relationship, suggesting that this deal should be thought of as a "rolling thunder as opposed to an event."

On the new go-to-market strategy, Hurd clarified that this will be led by a dedicated HCM team at Oracle for supporting NetSuite products.

Hurd stressed the closeness of the Oracle-NetSuite relationship, suggesting that this deal should be thought of as a "rolling thunder as opposed to an event."

Deloitte has also been tapped as the third partner in this initiative for to build a practice about new and faster integrated Software-as-a-Service deployments.

Describing the global consulting firm as the "perfect partner" for this initiative, Hurd said that Deloitte's involvement makes sense because it has both a "large HCM practice" and a "large Oracle practice."

The public discussion comes just one day after Oracle revealed a new nine-year deal with long-time "frenemy" Salesforce.com and two days after a new partnership with Microsoft .

Both arrangements strengthen Oracle's footing in the cloud, which the Redwood Shores, Calif.-based company finally unveiled last summer.

Oracle is working the phones again on Thursday as its CEO Larry Ellison will be joined by Salesforce.com CEO Marc Benioff for a conference call at 1PM PT/4PM ET.

Topics: Enterprise Software, Cloud, Enterprise 2.0, Oracle, Software

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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