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  • Format got off when I copied and pasted.
  • Intacct not even listed on the entire 31 vendor list!
  • SUMMARY
  • SUMMARY
  • Transcript

    • 1. So Many Platforms, So Little Time Zach Nelson, CEO, NetSuite Inc.
    • 2. Last Slide First
      • Difficulty in creating successful SAAS business means you will probably be considering a “platform” for future development
      • The hype over the Cloud has masked deficiencies in various platform approaches
      • The platform you choose for your business will determine success or failure
    • 3.
      • 1998 NetSuite founded by Larry Ellison and Evan Goldberg
      • 2000 Creates world’s first integrated SaaS suite application
      • 2003 Expands internationally
      • 2006 5,000+ customers
      • 2007 IPO on NYSE—ticker symbol “N”
      • 2008 Introduces NetSuite OneWorld
      • 2009 Delivers SuiteCloud Platform
      NetSuite’s Decade
    • 4. Gartner: NetSuite Fastest-Growing Top 10 Financial Management Vendor Market Share Source: Chris Pang, Chad Eschinger and Yanna Dharmasthira, “ERP Software, North America, 2008,” Gartner, June 17, 2009. Market Share Growth 2008 vs 2007 -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% NetSuite Lawson Infor Oracle Sage Deltek Other Microsoft Exact SAP
      • NetSuite is fastest growing in top 10
      • NetSuite is the only SaaS vendor
      • NetSuite growing 2.5X faster than the next vendor
      • SAP declined by 2%
    • 5. 2009: The Shift to the Cloud Accelerates
      • Data from most recent quarter.
      • Evolution Securities quoted on the Market Forces blog, guardian.co.uk, 12 March 2009.
      ? “ in organic decline”* -31% -31% -29% +16%
    • 6. Move to the Cloud Accelerating
      • The Cloud: A Disruptive Technology that is changing the landscape of strategic providers
      • The Cloud: A Requirement of 21st Century Business
        • Are we REALLY going to run our business on systems designed before the WWW existed?
      • The Cloud: A New Business Model that is changing the definition of platforms and partners
    • 7. Last Slide First
      • Difficulty in creating successful SAAS business means you will probably be considering a “platform” for future development
      • Cloud hype has masked deficiencies in various platforms
      • The platform you choose for your business will determine success or failure
    • 8. The Traditional Software Operating Model
    • 9. The SaaS Software Operating Model
    • 10. SaaS Vendor Roll Call Wanna Be’s Invested: $400M | Rev: < $100K Business ByDesign Invested: ?? | Rev: None Invested: ?? | Rev: < $100K Invested: $120M Leaders Invested: $65M Invested: $60M Invested: $40M Strugglers Invested: $75M | Rev: < $10M Invested: $200M | Rev: < $10 Invested: $20M+ | Rev: < $5M Invested: $20M+ | R.I.P
    • 11. Takeaways
      • Having deep pockets is a requirement, but not a guarantee of success
        • Strategy AND Execution
      • Cost of building business and entrenchment of “new leaders” limits VC desire to fund new ventures
        • What VC wants to spend $100 million and 8 years for a POTENTIAL exit with entrenched leaders already established?
    • 12. Cost Components: Delivery % of revenue 0% 5% 10% 15% 20% 25% 30% 35% 40% FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
    • 13. Cost Components: Sales % of Rev 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
    • 14. Platforms emerge as a way for ISVs to reduce costs and risk
      • Short-term reduced infrastructure cost
      • Potential sales and marketing benefits
        • Time to market
        • Installed based
        • Sales leverage
        • Brand recognition
    • 15. Last Slide First
      • Difficulty in creating successful SAAS business means you will probably be considering a “platform” for future development
      • The hype over the Cloud has masked deficiencies in various platform approaches
      • The platform you choose for your business will determine success or failure
    • 16. Business Operating System Database Development Environment salesforce.com Google Development Tools Software as a Service Infrastructure Accounting / ERP, CRM, Ecommerce NetSuite Business Suite NS-BOS NetSuite Business Operating System Platform SuiteApps OpSource Amazon Quick Infrastructure
    • 17. Platform Choice: IaaS
      • Pros
        • Eliminate cost of building your own infrastructure
        • “ Quick” access to cheap Cloud-based hardware, storage
      • Cons
        • Pure IaaS providers too low in the stack to provide service level guarantee beyond basic services
        • Plug-and-Play infrastructure for complex applications is a fantasy
        • Not designed for mission-critical applications
      Amazon Quick Infrastructure
    • 18. Database Development Environment Force.com Development Tools Platform Choice: PaaS
      • Pros
        • Cheap database in the cloud
        • Eliminate hassle of licensing, managing database and hardware
        • Some development tools provided
      • Cons
        • Build all SW modules from scratch
        • No cross-package integration
        • Questionable ability to support performance of complex applications
        • Non-existent concept upgrade or application management infrastructure
    • 19. Force.com Apps: Near Impossible for ISVs to Manage & Upgrade Effectively
      • Managed Apps
        • Once created, can’t be changed in any way– even by the ISV!
          • Can not change field-level help, field labels, add more custom fields or make any modifications… in essence, must be 100% bug free
        • Customer is limited to JUST ONE managed app installed in their salesforce.com account
      • Unmanaged Apps
        • Can be modified by the end customer, which would prevent them from possibly ever upgrading the app
        • Customer must uninstall and re-install in order to get a new version of the app (no SaaS model for upgrades)
    • 20. Platform Choice: SaaS
      • Pros
        • Infrastructure PLUS Application
        • Common development environment
        • Common customer target ensures alignment on end-user SLAs
        • Version management and software distribution built in
      Business Operating System Software as a Service Infrastructure Accounting / ERP, CRM, Ecommerce NetSuite Business Suite NS-BOS NetSuite Business Operating System Platform SuiteApps
    • 21. SuiteCloud vs. Force.com Application to build on
      • No
      • Business Suite
      Dev environment
      • 1 Sandbox
      • 4 Dev Account(s)
      QA environment
      • Shared with Dev
      • QA Account(s)
      Native debug env.
      • None
      • Built-in
      Version management
      • Manual
      • Automatically Managed
      Upgrade process
      • Uninstall, Reinstall
      • One-Click Upgrade
    • 22. Platform Choice: SaaS
      • Pros
        • Infrastructure PLUS Application
        • Common development environment
        • Common customer target ensures alignment on end-user SLAs
        • Version management and software distribution built in
      • Cons
        • Broad Suite capability eliminates some application categories
        • Vertical choice must be thought through
        • May require unique business terms depending on target market
        • Thought that “vertical” means “small available market”
      Business Operating System Software as a Service Infrastructure Accounting / ERP, CRM, Ecommerce NetSuite Business Suite NS-BOS NetSuite Business Operating System Platform SuiteApps
    • 23. The Power of Verticalization
      • 3 NetSuite customers - LogMeIn, OpenTable and Solar Winds – complete successful IPOs even in today’s economy
    • 24. Professional Services Automation (PSA) Solution Usage Chart highlights the PSA solutions used by 236 out of 245 survey respondents. 9 firms left this field blank.
    • 25. A Tale of Three Vertical Partners Agricultural Dealerships Discrete Manufacturers Supply Chain Management / 3PL Integrated with equipment re-sale value to automate dealer process of equipment trade-in, purchase and delivery. Complete solution encompassing key functions of materials management, work-in-process, shop floor control and costing. Integrated with central hub of supply chain to automate transportation, inventory and overall supply chain for 3 rd party logistics.
    • 26. Last Slide First
      • Difficulty in creating successful SAAS business means you will probably be considering a “platform” for future development
      • The hype over the Cloud has masked deficiencies in various platform approachse
        • Technology AND business model
      • The platform you choose for your business will determine success or failure
    • 27. Platform Outcomes
      • IaaS Likely Areas of Success
        • Utility corporate hardware and storage utility
        • SAAS B2B/B2C storage/hardware utility
      • PaaS Likely Areas of Success
        • Rapid Proto-typing
        • One-off corporate applications
        • Horizontal SFA-related widgets
      • SaaS Likely Areas of Success
        • Verticalized Suites and Business Intelligence
        • Horizontal business extensions
    • 28.  

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