Senior VP, Corporate Communications
NETSUITE'S "BUSINESS BYNETSUITE" PROGRAM OFFERS SAP CUSTOMERS OPPORTUNITY TO CUT COSTS BY 50% OR MORE
Third-Party Vendors Provide SAP Corporate to NetSuite Division Integration
SAN MATEO, Calif. — November 5, 2008 — NetSuite Inc. (NYSE: N), a leading vendor of on-demand, integrated business software suites that provide ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) and Ecommerce software for mid-market enterprise businesses and divisions of large companies, today announced a new program for SAP (NYSE: SAP) customers. The new program, called Business ByNetSuite, should appeal to existing SAP R/3 customers who are eager to address expanding business software needs without having to increase their capital investment in SAP and incur more fees on top of what may be the highest maintenance fees ever levied by a major vendor in the enterprise software market. The NetSuite program guarantees SAP R/3 customers at least 50% off their current annual maintenance and support agreement when they switch to an annual NetSuite subscription. For more information about the "Business ByNetSuite" program, please visit www.netsuite.com/businessbynetsuite.
Business ByNetSuite enables SAP customers to deploy the complete NetSuite ERP (enterprise resource planning) offering at a subsidiary or departmental level as an SAP replacement, or as the top choice for a brand new implementation. In either situation, NetSuite can easily complement a customer's broader SAP investment, and its ability to help companies manage core business operations in a single on-demand business software system can deliver a huge advantage over current SAP division-level deployments in terms of cost savings and overall productivity gains.
NetSuite Replaces SAP at Asahi Kasei
One strong example of NetSuite's advantages over SAP at a divisional level is the impact it has had at Asahi Kasei Spandex America after replacing SAP R/3. The company, a subsidiary of Tokyo-based Asahi Kasei Fibers Corp., develops and produces brand fibers of outstanding quality for nearly all fields of applications of textile production. After implementing NetSuite, the company cut its monthly operating costs by 80%, a savings of more than $1 million annually, and was able to eliminate 13 consultants that were dedicated to maintaining and operating their SAP implementation.
"We were spending 3% of our revenue on SAP. By switching to NetSuite, we reduced that cost to 0.1% of revenue," said David Stover, Chief Financial Officer, Asahi Kasai. "We're 'slaves to fashion' here. When fashion changes, we've got to change quickly. And SAP wasn't conducive to those changes. It's not only the system itself but also the infrastructure that was required with SAP. All that stuff goes away with NetSuite."
"Despite SAP's recent 29.4% increase in their maintenance and support charges, we expect they are eager to help their customers reduce costs during this difficult economy," said NetSuite CEO Zach Nelson. "One sure way they could significantly lower the overall total cost of ownership for SAP R/3 customers would be to embrace NetSuite as a complementary, division-level solution within their installed base. Even at NetSuite's list price, we will save SAP customers at the divisional level enormous amounts of money and they will gain access to a modern, on-demand business suite specifically designed to meet their needs."
NetSuite Complements SAP
NetSuite can also play a complementary role at the divisional or subsidiary level in a large organization where SAP R/3 is deployed at the corporate headquarters. Here are two examples:
- ABS-CBN — ABS-CBN (Alto Broadcasting System-Chronicle Broadcasting Network) is the largest media company in the Philippines. Founded in 1953, it was Asia's first commercial television broadcaster. While the company uses SAP as their primary accounting system, ABS-CBN relies on NetSuite to automate a number of key business processes, including customer activation for their telephone business.
- Global Energy Company — One of the world's leading manufacturers of alternative energy technology, based in the U.S., recently implemented NetSuite even though SAP is the ERP (enterprise resource planning) system of record for its Asian-based parent company. The company relies on NetSuite to provide ERP, including accounting, inventory and order management; and customer relationship management (CRM), including email marketing campaigns, reporting, and customer portal capabilities.
NetSuite OneWorld Lets SAP Divisions Manage Globally
Another major consideration for implementing NetSuite at the division level within an enterprise SAP deployment is NetSuite OneWorld, the only on-demand system to deliver real-time subsidiary-management and business-consolidation capabilities for multinational companies, including front-office, back-office and e-commerce operations.
"With the addition of NetSuite OneWorld, SAP customers, using an on-demand architecture, can enable their divisions to easily run a multinational business and handle all the challenges of different currencies, tax rules, and reporting requirements. This is a capability SAP can't deliver," said Nelson.
The "Business ByNetSuite" program is available now on a global basis and open to all SAP R/3 customers in good standing. The 50% cost savings is applied based on what an SAP R/3 customer is currently paying for annual maintenance and support. NetSuite guarantees an annual subscription price of 50% lower for a comparable number of user seats, including NetSuite Gold Level support. To expedite SAP replacements, NetSuite has developed a special SAP Migration Program, which includes a set of services and third-party tools designed to help ease the migration for SAP customers making the switch. The program offers 100 hours of free professional services time that can be applied to various implementation tasks such as business process mapping, configuration, data migration, end-user training and deployment assistance.
Moving Data from SAP to NetSuite
To address the specific requirement of migrating data out of SAP and into NetSuite, or to be able to report financial results up to a parent company running SAP, NetSuite has partnered with three companies that provide special SAP-to-NetSuite integration solutions. They are:
- Boomi — Using Boomi On Demand, customers have access to a SaaS (Software as a Service) integration solution that lets them migrate and integrate SAP data to NetSuite with no coding. Whether migrating from SAP to NetSuite, or connecting NetSuite to SAP at the corporate level, Boomi makes this possible with unique Visual Integration Technology SM that allows companies to integrate applications, trading partners and data with point-and-click ease. For more information, visit: http://www.boomi.com/Boomi_On_Demand/netsuite/?src=35
- Cast Iron — Cast Iron Systems provides a prepackaged solution specifically for NetSuite customers seeking to migrate from or integrate with SAP. These customers use Cast Iron's "no coding" solution to rapidly migrate data from SAP to NetSuite and accelerate the adoption of its enterprise research planning (ERP), ecommerce and CRM suite in their subsidiary companies. In addition, they can also leverage the same solution to easily exchange business information between NetSuite and their corporate SAP applications on an ongoing basis. For more information, visit: http://www.castiron.com/integration-solutions/netsuite/index.html
- Pervasive — Pervasive Software (NASDQ: PVSW) delivers a highly flexible, reliable and affordable platform for one-time migration or ongoing bi-directional data integration between NetSuite and multiple other applications including SAP. Pervasive is a leader in delivering the lowest TCO (total cost of ownership) integration solutions for a wide variety of integration challenges. More than 10,000 customers worldwide have relied on Pervasive solutions to meet mission-critical data integration challenges. For more information, visit: http://ww2.pervasive.com/Integration/Solutions/ApplicationIntegration/Pages/NetSuite.aspx
For more information about NetSuite Inc., please visit www.netsuite.com.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.