SVP, Corporate Communications
Move to NetSuite OneWorld Reduces IT ERP Costs by 80% and Streamlines Business Processes
SAN MATEO, Calif.—December 8, 2009—NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced the latest SAP customer to replace SAP R/3 software with NetSuite, further validating the ability of NetSuite's leading cloud computing technology to surpass the business value of core SAP Enterprise Resource Planning (ERP) solutions. Seeking improved ease of use and reduced cost of ownership, The New Release has cut ties with SAP in favor of NetSuite OneWorld. For more information about this and other SAP customers who have switched to NetSuite, please visit www.netsuite.com/sapcrossroads.
"SaaS adoption has moved beyond the "Tipping Point' — enterprise customers are moving to the on-demand "Cloud' model for a variety of applications as concerns about its shortcomings decline," said Ray Wang, partner with analyst firm Altimeter Group. "Additionally, the confluence of recessionary forces, stalled innovation from many on-premise software vendors, and success of early SaaS pioneers has pushed Software as a Service into the mainstream as alternatives to the legacy ERP solution providers."
The New Release, which owns and operates thousands of DVD rental kiosks throughout the U.S. under the Moviecube and Blockbuster Express brands, recently embarked on an aggressive expansion campaign to expand their share of the DVD rental market. But TNR's SAP R/3 operating platform was a major obstacle to growth and a significant cost drain. With the assistance of NetSuite partner Scope Group, Inc., TNR cut over to NetSuite from SAP in approximately 100 days from the time the project started. The project was accomplished on time and on budget. TNR was starved for additional data and reporting dimensions, and faced substantial consulting costs to adapt the SAP R/3 system to its needs. Replacing SAP R/3 with NetSuite OneWorld will save TNR approximately $325,000 per year in annual recurring ERP spend.
"NetSuite has greatly reduced our stress level, helped us streamline our basic processes, and organize around our aggressive growth strategy," said Tracy Terrell, CTO of The New Release. "We can make better, faster decisions about capital allocation, new kiosk deployment, perform monthly close more quickly, and customize the system ourselves in a matter of minutes."
With unequalled depth of functionality, ease of use, and a technology platform built for the 21st century enterprise, NetSuite continues to establish itself as a thriving alternative to legacy ERP systems. The availability of solutions such as SuiteCloud Connect, which provides seamless integration with existing SAP implementations for migration or integration purposes, has attracted a growing list of companies to supplant or augment SAP with the NetSuite solution.
Home improvement distributor COMMCO avoided a $1 million investment in SAP R/3 by selecting the more cost-effective NetSuite OneWorld solution. Another company, Asahi Kasei Spandex America, saved $1 million in costs including licenses and the need for three additional employees, and is also saving $20,000 per month, after switching from SAP R/3 to NetSuite. These key customer wins are part of the reason why NetSuite was recently recognized by Gartner Dataquest as one of North America's top ten ERP vendors by revenue.
For more information about NetSuite please visit www.netsuite.com.
NOTE: NetSuite and the NetSuite logo are registered service-marks of NetSuite Inc.