NetSuite, Inc., the industry's leading provider of cloud-based financials / ERP software suites today announced that more than one-third of the companies that made JMP Securities' Hot 100 Best Privately Held Software Companies list are using NetSuite to run their key business processes, from order-to-cash, subscription renewals, billing, financial reporting, revenue recognition and professional services automation. These companies are identified by JMP Securities, a San Francisco-based boutique investment bank, as the software industry's leading private software companies. Some of these hot software companies include Host Analytics, Eloqua, Splunk and Alert Logic which rely on NetSuite for managing their end-to-end software businesses helping to accelerate growth. For their success stories, please join the upcoming webinar on March 31, 2011 at netsuite.com/portal/E:/software-webinar_SS.html.
NetSuite Powers Hundreds of Leading Software Companies
For years, the effectiveness of software companies' financial and business operations was constrained by on-premise software and manual processes. On-premise software lacks the scalability needed by fast-growing, international businesses. Many software companies still rely on highly inefficient, spreadsheet-driven manual processes to manage key business processes such as billing, purchases, expenditure approvals, financial reporting, contract renewal, professional services automation and revenue recognition. It's very costly to install and maintain traditional on-premise software, and the complexities of the systems don't scale with a growing employee base.
NetSuite delivers the right combination of scalability, flexibility and cost-effectiveness. NetSuite's cloud-based ERP suite is the solution of choice for the software industry, running critical business processes for hundreds of the most innovative software companies, including leading public SaaS companies such as RightNow (Nasdaq: RNOW) and SuccessFactors (Nasdaq: SFSF). The world's first and most powerful cloud ERP solution for complex, multi-national companies, NetSuite OneWorld meets the needs of global software companies with built in support for real-time multi-subsidiary financial consolidation and reporting, multi-currency, multinational taxation rules and unified real-time views into the business performance of each and every subsidiary.
NetSuite is uniquely positioned to serve today's best and brightest firms by providing an integrated, focused set of functionality for software companies. With NetSuite, software companies are able to focus on innovation and growth while enjoying streamlined billing and renewal processes, accurate financial reporting and the ability to meet revenue recognition requirements and comply with the new Financial Accounting Standards Board (FASB) rules for multi-element sales, known as EITF 08–01 and EITF 09–03.
"Privately-held software companies continue to choose NetSuite not only because of the superior capabilities for their business needs today, but for their successful evolution and exit strategies of the future," said Ron Gill, NetSuite CFO. "Many members of previous Hot 100 lists have been purchased or gone public after building their business on NetSuite technologies, and we expect to continue to be the enterprise technology provider of choice for innovators with vision and high business aspirations."
Some of the members of the 2011 Hot 100 relying on NetSuite to power their growth, expansion and innovation include:
Host Analytics (hostanalytics.com) of Redwood City, CA, provides on-demand performance management, analytics, and reporting. After QuickBooks struggled to support the sheer volume of the company's rapidly growing business, Host Analytics turned to NetSuite. Instead of juggling spreadsheets to try to understand revenue recognition, NetSuite automates the process. The company cut three days off of its close-and-disclose cycle by removing several bottlenecks thanks to NetSuite's strong interoperability with other enterprise solutions, including Host Analytics' own performance management solutions; and using Host Analytics Executive Report Manager product. Correcting financial errors previously took as long as a day, but with NetSuite, variances can be corrected in a matter of minutes. As a cloud developer itself, Host Analytics clearly understands the value of NetSuite's flexible, scalable architecture. "We aim not only to be a world-class cloud vendor, but a world-class consumer of cloud solutions," said Kelly Bodnar Battles, Host Analytics CFO. "And because NetSuite is so scalable, we don't have to increase headcount as we grow our revenue. Our infrastructure is solid, so we can handle aggressive growth affordably and reliably."
Eloqua (eloqua.com) of Vienna, VA, specializes in marketing automation solutions that drive revenue performance. Eloqua found that it could not manage its global operations effectively without a flexible multi-entity, multi-currency capable solution. Other systems couldn't give Eloqua the control it needed over complex business relationships with major customers, and lacked sophisticated dashboards for easy executive management. NetSuite OneWorld fit the bill by giving Eloqua transparent integration with current currency valuations and gaining full control over the revenue recognition complexities associated with its subscription billing model. NetSuite OneWorld's international adherence to accounting standards in several countries ensures that Eloqua remains in compliance with the latest accounting regulations. "You can't grow if you spend all your time in the auditor's department," said Don Clarke, Eloqua CFO. "As a venture-backed company, the transparency and accurate revenue recognition NetSuite provides are critical, because if you don't have it, it will impact your enterprise value significantly."
Splunk (splunk.com) of San Francisco, CA, delivers software for collecting, indexing and harnessing the value of machine data. Early in the company's growth cycle, Splunk decided to embrace flexible, scalable cloud-based solutions to power its key business processes. NetSuite enables Splunk to go to market as a global business, with the ability to manage international accounts, multiple legal entities, and consolidation to the US dollar. NetSuite allows Splunk to avoid the overhead and hassles of a corporate data center for deploying enterprise ERP/CRM/HRIS applications. Instead of focusing on the hundreds of decisions required to manage an on-premise solution, Splunk's leadership can focus on adhering to best practices, maintaining business controls, and ensuring clean audit trails. "Every minute you spend in the data center figuring out how to install, upgrade and update your ERP is a minute wasted in your day," said Doug Harr, Splunk CIO. "NetSuite's manageability, upgradeability, and expandability all benefit us particularly well, and save us from having to build out any complicated infrastructure with a $1 million investment in software and another $1 million in data center costs."
Alert Logic (alertlogic.com) of Houston, TX, provides cloud-based Security-as-a-Service solutions for protecting enterprise and service provider customers. NetSuite's ease-of-use and user-friendly design made it easy for Alert Logic to adopt it quickly for general ledger, procurement, accounts payable, billing, receivable management, and integration with order management. NetSuite's extensive controls ensure that Alert Logic has all the tools it needs to manage its business today, and clean financial records that could support the changing needs of a fasting growing SaaS company without the intervention of financial re-engineering experts. "JMP Securities recognizes what NetSuite has recognized all along, and what has been a building block of our business as well—companies want to consume IT as a service," said Johnny Vincent, Alert Logic CFO. "And the fact that NetSuite can provide enterprise-level capabilities and financial controls at SMB pricing makes it an obvious choice."
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