Oracle Buying NetSuite For $9.3 Billion

Oracle is buying ERP and omnichannel software provider NetSuite in a deal valued at around $9.3 billion, both companies announced.

The move reunites NetSuite CEO Zach Nelson with Oracle chairman Larry Ellison, who co-founded San Mateo, CA-based NetSuite in 1998. Ellison stepped down as NetSuite CEO two years ago.

Oracle CEO Mark Hurd said his company and NetSuite's cloud applications are complimentary.

"We intend to invest heavily in both products — engineering and distribution," Hurd said in a statement.

NetSuite — which reported a 30 percent year-over-year Q2 sales increase — provides cloud-based financials including ERP and omnichannel commerce software suites for distributors, manufacturers and retailers. Its software enables businesses to automate operations, streamline process and access real-time data on-demand.

NetSuite has more than 30,000 customers in more than 100 countries.

"NetSuite will benefit from Oracle's global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries," said NetSuite's Nelson. "We are excited to join Oracle and accelerate our pace of innovation."

The transaction is expected to close this year.

NetSuite will acquire email service provider Bronto Software

The deal will combine a major B2B and B2C e-commerce platform and business software provider with an email marketing company that works with more than 100 Top 1000 online merchants. NetSuite will pay $200 million for Bronto.

In a deal that will combine the resources of a major supplier of e-commerce software with those of an online marketing firm, NetSuite Inc. signed an agreement to purchase Bronto Software for $200 million.

NetSuite provides order management software to 15 merchants ranked in the new Internet Retailer 2015 Top 500 Guide, including Bed Bath & Beyond Inc. (ranked No. 80), Groupon Goods (No. 30) and PureFormulas.com (No. 401). It also supplies customer relationship management (CRM) and fulfillment services to many of those retailers, and 27 e-retailers in the 2014 Second 500 Guide use NetSuite’s order management system and other services.

In total, the company says more than 3,000 business-to-business and business-to-consumer companies use its SuiteCommerce e-commerce platform. More than half of those customers are B2B, and last year it launched a new set of B2B software tools for its SuiteCommerce e-commerce platform.

In combining the marketing capabilities of Bronto with the e-commerce platform, order management and inventory visibility of NetSuite, the companies believe they have a unique opportunity to enable retailers to market to customers more effectively, Bronto CEO Joe Colopy and NetSuite general manager of commerce products Andy Lloyd said.

“Going forward, think about a retailer that’s sending out email marketing to their customer list,” Lloyd says. “They have specific items they want to market to that customer. If they send out the exact same email to all clients, they may be promoting an item that’s not in stock in the store a mile down the road from some customers. Now you’ll be able to do things like send email to consumers that takes into account not only their purchase history, but also things like what’s in stock in a local store.”

The companies will operate separately, and both are planning major hires. NetSuite plans to add 1,000 employees this year, Lloyd says, and Bronto is on track for an additional 100 hires, mostly at its headquarters in Raleigh-Durham, N.C.

Thirty-seven merchants in the 2015 Top 500 Guide, including JustFab Inc. (No. 98), Nasty Gal Inc. (No. 112) and CafePress.com (No. 140), and 67 merchants in the 2014 Second 500 Guide name Bronto as their email marketing provider. (The 2015 edition of the Second 500 Guide will be released in mid-May.)

NetSuite and Bronto say they will be able to supply retailers, manufacturers, wholesalers and distributors with NetSuite’s e-commerce and accounting software integrated with Bronto’s marketing tools.

“This combination, for the first time ever, ties a rich marketing automation system with a cloud-based omnichannel commerce platform.  The capabilities this solution will deliver are transformational,” says NetSuite CEO Zach Nelson. “Just as customers demand seamless cross-channel shopping experiences, they increasingly expect companies to communicate consistently through all of their digital experiences – on site, at stores, in email or through social or mobile.  By combining the two companies’ offerings and technology, we can help merchants deliver relevant and consistent digital commerce experiences throughout the customer journey.”

The deal is expected to close in the second quarter of 2015, subject to certain closing conditions and regulatory clearance.

NetSuite Unveils New B2B Customer Center for SuiteCommerce

At SuiteWorld 2014, NetSuite CEO Zach Nelson, in the opening keynote, announced the latest release of B2B Customer Center, built on the SuiteCommerce platform. Given that business models are increasingly converging and lines blurring (retail vs. distribution vs. manufacturing, products vs. services, B2B vs. B2C vs. B2B2C, etc.), the idea is to enable business to business (B2B) merchants (distributors, manufacturers, and B2B buyers) to deliver a business to consumer (B2C)-like online shopping experience (see image below).

Business must be commerce ready, and integration of front-office customer relationship management (CRM) data with back-office enterprise resource planning (ERP) data is an imperative—with astute omnichannel order management capabilities at the core. To that end, NetSuite’s new B2B Customer Center allows B2B buyers to view order status, details, and history, track shipments, reorder goods, approve quotes, make payments, manage account information, request refunds and returns, and more, in a secure password-protected environment.


 


The major features of the B2B Customer Center include a self-service customer portal, new customization, billing and payments, account, and product management capabilities that promote business efficiency by offering tools such as lists for seasonal purchasing and frequent buyers (to create custom shopping lists, or wish lists, to expedite recurring purchases). NetSuite SuiteCommerce's extensible platform supports role-based permissions, allowing customers to extend the solution to business-specific use cases, such as branded design, streamlined ordering, and payments. Responsive web design capabilities optimize the site for multiple devices, meeting the growing need of both buyers and sellers to access information and complete transactions anywhere and anytime.

As demonstrated to the conference attendees (see photo below), B2B buyers now have flexible payment options, including paying single invoices or multiple invoices, or making partial payments. Buyers can take advantage of discounts for paying early, whereas overdue invoices are highlighted to ensure proper payment. Customizable dashboards give buyers a snapshot overview of outstanding and available balances, deposits, credit limits and memos, current terms, and more. NetSuite distribution and manufacturing customers such as VHA Corp, EndoChoice, CMP Corp., Liberty Bottleworks, Tacoma Screw Products, Cleaner's Supply, and PAG Leisurewear are using NetSuite SuiteCommerce to reach new markets, drive site traffic, and improve operational efficiency by eliminating manual steps in phone, e-mail, and fax orders.

NetSuite Unveils New User Experience

NetSuite chief executive officer (CEO) Zach Nelson unveiled the new NetSuite user interface (UI) with a more intuitive and visually engaging work experience during his keynote address at the company’s SuiteWorld 2014 conference yesterday. Founder and chief technology officer (CTO) Evan Goldberg discussed and demonstrated the new capabilities more deeply in his SuiteWorld 2014 keynote presentation today. NetSuite plans to roll out the new UI with NetSuite's 2014.2 release, scheduled for Q3 2014.

As the pioneer in cloud enterprise resource planning (ERP), NetSuite has been at the forefront of UI design trends. Its first release in 1999 abandoned the Microsoft Windows desktop standard look and feel of the era and adopted the web metaphor. The company’s UI introduced role-based business intelligence (BI) dashboards, while its 2006 UI featured in-line editing in web-based applications (instead of just viewing) and incorporated Ajax technologies to develop dashboards and portlets that live natively in core business applications (see image depicting the development of NetSuite UI over the years).



NetSuite's 2014 UI

To again reinvent its business application UI, NetSuite conducted 3 years of deep usability research with its customers. It reportedly completed extensive research, user observations, and usability testing with users across various roles—from front-line sales, marketing, finance, e-commerce, human resources (HR) and services employees through to C-level executives. Leveraging and supporting HTML5 and based on principles of modern ‘flat design,’ which emphasizes crispness and clarity, the NetSuite UI exhibits easy-to-read fonts, attractively redesigned icons and graphics, increased whitespace, and greater aesthetic simplicity (see figure).

 


Overall, 2014 UI highlights include easy access to navigation and tools such as Global Search, Recent Records, Help, and Shortcuts, as well as a new global Quick Add feature that enables users to rapidly add tasks, events, contacts, and more from anywhere in the product. In addition, the ‘progressive disclosure’ feature conceals action prompts until mouseover for a “cleaner” experience, and there is also an improved experience on tablets through a responsive dashboard, larger menus and controls, and improved scrolling (see image).

 

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