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Can NetSuite successfully move up market?

By | May 10, 2011, 3:13pm PDT

Summary: NetSuite’s announcement of Qualcomm as a customer signals a move upmarket. But can it service those customers successfully?

Day one of SuiteWorld and as predicted, NetSuite announced Qualcomm as a new customer. Larry Dignana makes the point:

As far as large enterprise buyers go, Qualcomm will be the one to watch for evaluating NetSuite. Accenture is doing Qualcomm’s NetSuite installation.

Implementation is one thing, but with large customers come large challenges. During the executive Q&A, Evan Goldberg, co-founder and CTO NetSuite demonstrated how business analysts can create new workflows that can support subprocesses and email notifications using SuiteFlow. As a version 1.5 workflow solution, it is a credible configuration tool that will suit mid-sized businesses with tech savvy business analysts. However, large customers often want to customise - i.e. get to the code.

Talking this through, Goldberg made the point that times have changed and the need to get to code is much reduced with the new classes of tool that are available. Zach Nelson, CEO of NetSuite said that in around two years, the company expects its own developers to develop off the tools customers use today rather than natively in Java. “We’ll still have to move some things to Java code but it will be a fraction of what we’re doing today.

The question remains - will NetSuite’s core code and tools mature to the point where large companies feel comfortable working in that way rather than writing code? I’m not sure. Goldberg made the point that when you’re a small company then product returns may not require development of a specific module but large companies would need that functionality as a native part of the solution.

NetSuite has always been ambitious and should be congratulated for its ability to move upmarket over the last couple of years. However, the kind of customer it is planning to engage exhibits a level of complexity that is an order of magnitude above that which they are used to managing. As Goldberg says: “We’ll see how well we do.”

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Dennis Howlett has been providing comment and analysis on enterprise software since 1991.

Disclosure

Dennis Howlett

Dennis Howlett is committed to maintaining the independent and opinionated stance that his writings are well known for and does not enter into contracts that would limit his freedom of expression in any way. However it is important in the interests of full disclosure to inform readers of those relationships so they can form their own judgment. This page therefore lists all Dennis Howlett’s current business relationships.

Dennis’s consulting arrangements occasionally bring him into direct or indirect business relationships with some of the companies about which he writes, and/or their competitors. Where such a relationship exists, it is disclosed at the end of any article that references the company concerned.

Dennis owns AccMan, an independently produced blog covering the professional services market, primarily focused on Europe. It is currently sponsored by selected TextLink Ads and named sponsors in the ‘Sponsored Content’ block.

He is a member of Enterprise Advocates, a loose association of consultants, and analysts who are concerned with the buyer side of the buy-sell enterprise relationship.

He is a paid contributor to IT Counts, a site dedicated to discussing technology issues as they related to ICAEW members. He also advises ICAEW on certain aspects of its member outreach programs.

He is an SAP Mentor and participates in SAP Mentor webinars. He has recently produced a guide for SAP resellers wishing to record customer videos. Other than as disclosed here, Dennis maintains no business relationship with SAP and is not financially rewarded for his role as a Mentor.

Dennis maintains relationships with a range of end user organizations and in all cases is subject to non-disclosure agreement. He has no current ‘paid for’ relationships with ITC vendors except as disclosed above although certain vendors comp travel and expenses claims. For the benefit of doubt, T&E reimbursement is a common practice among European based writers. It is often the only way we can attend important events. Even so it doesn’t impact our analysis of what vendors have to say. If you believe otherwise then feel free to ignore what is written here.

Except as mentioned above, Dennis has no other investments in any tech industry participants. This page last updated 23rd February, 2010.

Biography

Dennis Howlett

Dennis Howlett has been providing comment and analysis on enterprise software since 1991 in a variety of European trade and professional journals including CFO Magazine, The Economist and Information Week. Today, apart from being a full time blogger on innovation for professional services organisations, he is a founding member of Enterprise Irregulars and an investor in a European start-up. Prior to, Dennis was technology and tax partner in a British firm of Chartered Accountants for 10 years. Prior to that held various senior finance roles across a broad range of industries.

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"The question remains - will NetSuite?s core code and tools mature to the point where large companies feel comfortable working in that way rather than writing code?"

The point I think is that you don't have to write code, but if you want to you can create entire new applications in NS, top to bottom - see RootStock, yes? There's a lot of custom code there.
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