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HP and NetSuite to Deliver Cloud Computing Solutions to Small and Midsize Business Market
Companies Combine Product and Channel to Advance SaaS Revolutionn
PALO ALTO, Calif., — November 11, 2008 — HP and NetSuite today announced they are partnering to offer software as a service (SaaS) business applications to the small and midsize business (SMB) market. (1)
The relationship enables the HP channel of 15,000 value-added resellers (VARs) in the United States to offer cloud services to SMB customers.
According to AMI Partners, a leading SMB research firm, 62 percent of midsize businesses see customer relationship management as strategically important, yet only 14 percent have implemented it due to return on investment pressures and limited resources. Further, while 64 percent think enterprise resource planning is important, only 16 percent have implemented it for the same reasons. (2) HP's infrastructure technology and robust channel network combined with NetSuite's hosted SaaS suite offer SMBs an easy-to-implement, reliable business management solution delivering an affordable alternative to on-premise solutions in this tough economic environment.
NetSuite's comprehensive business management suite provides SMBs a single integrated system to manage all key business operations, including customer resource management, accounting, enterprise resource planning and ecommerce. The company's cloud-based services use enterprise-class technology to enable real-time insight into all aspects of business computing without the typical overhead costs.
Together, HP and NetSuite have developed a referral-based program for HP channel partners. In addition, partners can offer new value-added management and implementation services related to the NetSuite Software offerings as part of the HP Total Care portfolio of services, software and support that helps SMBs manage, protect and grow their business.
"SMB customers are looking for new ways to avoid up-front technology costs, and on-demand services are the ideal solution," said Enrique Lores, senior vice president, Solution Partners Organization and Commercial Sales, HP. "Our partnership with NetSuite offers the HP channel network an excellent method for participating in this growing SMB market opportunity. They will now have access to the tools they need to stay at the forefront of technology with new ways to deliver outstanding service to their SMB customers."
"This collaboration with HP will accelerate our penetration of the SMB market worldwide and demonstrate that the channel can play a major role in delivering cloud computing solutions," said Zach Nelson, chief executive officer, NetSuite.
SMBs can have peace of mind knowing that they are supported by their trusted channel partner and that their software services are running on high-performance HP ProLiant servers with HP StorageWorks Modular Smart Arrays. Services can be scaled up or down to meet the changing needs of businesses, ensuring that they only pay for what they need, when they need it.
HP and NetSuite are increasing the breadth of VAR offerings to include SaaS as well as hardware. As the cloud market develops, SMBs will require the ability to use a mix of on-premise and hosted solutions as their needs and budgets change.
"The trend toward services delivery by channel partners has been marked in the last several years, and it will only continue to increase," said Christina Richmond, channels analyst, IDC. "Partners must evolve toward a more solution-centric approach gradually, while maintaining their core hardware competencies. This offering from HP goes a long way toward enabling partners to easily incorporate hardware, software and services which, as a solution, will assist the channel in taking the necessary steps to transform their business models for the future."
NetSuite has established dedicated resources to support HP resellers as they bring NetSuite offerings to market, including a toll-free hotline for sales support and a self-service portal where resellers can access sales tools and online training resources.
NetSuite Inc. (NYSE: N) is a leading vendor of on-demand, integrated business management software suites for midsized businesses and divisions of large companies. NetSuite enables mid-market companies to manage core business operations in a single system, which includes accounting/enterprise resource planning (ERP), customer relationship management (CRM), and ecommerce. NetSuite's patent-pending "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information. For more information, please visit http://www.netsuite.com.
HP, the world's largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP (NYSE: HPQ) is available at http://www.hp.com/.
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(1) HP defines SMB as companies with 1 to 999 employees.
(2) AMI-Partners, "2007-08 WW Medium Business IT Infrastructure Market research," Feb. 4, 2008, based on AMI's annual tracking studies conducted in 14 countries.
NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating to the impact of NetSuite's strategic partnership with HP on NetSuite's penetration of the SMB market worldwide. These forward-looking statements are based upon current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for on-demand services may develop more slowly than expected; general changing and unpredictable macro-economic conditions including recent market volatility; unexpected disruptions of service at the Company's data center may occur; a security breach may impact operations; risks associated with material defects or errors in the Company's software or the effect of undetected computer viruses could impact operations; the risk of technological developments and innovations by others; the risk of losing key employees; general economic, market and political conditions and events, including, without limitation, war, conflict or acts of terrorism; and other risks and uncertainties.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2008 and any subsequently filed reports on Forms 10-K, 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or NetSuite's website at www.netsuite.com.
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008 and HP's other filings with the Securities and Exchange Commission, including but not limited to HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.
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