NetSuite Shifts Business Model, Offers Industry-Specific Apps

NetSuite-Software Company Edition, tailored toward companies developing software, includes customer relationship management CRM and enterprise resource planning(ERP) capabilities.

But the developer is being coy about some details regarding the changing business model. An announcement in April should provide further information, said Mini Peiris, NetSuite's vice president of product management, declining to provide details on the changing business model. Without elaborating much, Peiris did say NetSuite will target some five industry markets, including software and distribution.

Each market will have dedicated service and product support. "The shift in business model will affect less than 10 percent of NetSuite's more than 500 employees," Peiris said. "Companies will still have an option to integrate and customize these vertical editions."

As for the NetSuite-Software Company Edition released on Tuesday, the hosted platform includes CRM tools that track sales from initial leads through the completion of a deal. The platform also offers features designed to manage a Software-as-a-service business model. For example, companies delivering SaaS, will have an option to give sales people one quote for gross billings and another that measures the first-year value of deals.

Sponsored post

The financial applications reflect software accounting requirements, such as the ability to bill customers on software use, and create custom invoices based on license agreements and service contracts.

Asynchronous JavaScript and XML (AJAX) dashboards with 15 pre-configured templates for specific departments within a company are available, too.

Incorporating Ajax delivers NetSuite customers a Windows-like environment where, similar to a spreadsheet, users can click on the application to access the data without drilling down through several layers, more typical of a Web application.

Real-time visibility into key performance indicators (KPIs) allow executives to track sales, billings, GAAP and cash basis; forecast on billings; GAAP revenue, quota bearing reps on board; and pipeline weighted and un-weighted.

NetSuite serves more than 7,500 companies, about 200 are in software. The new hosted service has yet to have takers.

NetSuite-Software Company Edition is available for $2,999 per month; and $99 per user per month.