NETSUITE ESTABLISHES FOOTPRINT IN HONG KONG TO EMBRACE HUGE MARKET OPPORTUNITY
Latest Customer Wins — Vita Green Health Products and Eco Technology International Limited — Indicate Strong Regional Demand for SaaS Applications
CEO Zach Nelson Hosts Event to Introduce the Groundbreaking NetSuite OneWorld Solution to Hong Kong Businesses
HONG KONG and San Mateo, Calif. (U.S.A.) — 24 September 2008 — NetSuite Inc. (NYSE: N), a leading vendor of on-demand, integrated business management software suites for mid-market enterprises and divisions of large companies, today announced that the company has opened a new office in Hong Kong in order to respond to the fast-growing demand for Software as a Service (SaaS) applications in the Asia Pacific region and specifically in Hong Kong and China. According to Springboard Research, Asia-Pacific SaaS revenues will grow from US$274 million in 2007 to approximately US$1.8 billion by 2011; the industry analyst firm Gartner estimates the Asia-Pacific SaaS market is growing twice as fast as the market for traditional on-premise applications. In addition, a recent research report by Forrester Research found that 61% of Hong Kong and Chinese firms plan to adopt SaaS within the next year.
The new NetSuite office, located at 100 Queens Road Central, 6th Floor, was announced today by Zach Nelson, NetSuite's Chief Executive Officer, at an exclusive event held at Azure Restaurant in Central Hong Kong. At the event, NetSuite also introduced NetSuite OneWorld to Hong Kong businesses and announced the latest customer wins in Hong Kong, including fast-growing businesses such as Vita Green Health Products and Eco Technology International Limited.
"We see huge potential for our offering in this region," said Zach Nelson, CEO of NetSuite. "NetSuite's on-demand solutions provide a cost-effective yet powerful way for businesses to manage their core operations from lead to order to inventory to service projects, through finance and even their website and ecommerce operations with one single application."
There are many reasons for the interest in SaaS among Hong Kong and Chinese businesses. Because on-demand applications like NetSuite only require a Web browser, they offer multinational and geographically distributed enterprises — which are prevalent in Hong Kong, a hub of international business — the ability to access information about their business operations from multiple offices without the hardware cost typically associated with on-premise solutions. It is expected that the benefit of "anytime, anywhere" access, combined with the increase in efficiency of business operations that comes from NetSuite's unique single system for managing everything from sales to orders to cash, will allow cost-conscious Asian businesses to grow rapidly while greatly reducing their total-cost-of-ownership (TCO) for business systems. Hong Kong's world-class infrastructure — over 98% of households and more than 95% of business buildings have broadband Internet access — make SaaS applications a natural choice.
Particularly well-suited for the many international companies based in Hong Kong, NetSuite OneWorld enables mid-market businesses with multiple subsidiaries, business units and legal entities to:
NetSuite's native SaaS delivery model enables the OneWorld functionality to be accessed anywhere simply by opening a browser, and eliminates significant IT issues associated with traditional approaches to global business management software. The combination of NetSuite OneWorld's capabilities and NetSuite's cloud computing delivery platform helps eliminate the cost and technology barriers facing mid-sized companies operating globally or across multiple locations.
Prior to NetSuite OneWorld, typically only large companies with the ability and willingness to spend large sums of money could approach such high levels of business integration. Mid-sized companies using traditional applications such as Microsoft Dynamics GP (often referred to as Great Plains) could achieve a low level of business integration, but often could only see limited consolidated financials, which can be of suspect value.
Of course, large systems such as SAP or mid-market systems like Microsoft Dynamics GP are not delivered as native Web applications, so any attempt at limited business consolidation using these systems would typically require large expenditures in IT costs and systems management.
Additional benefits of NetSuite OneWorld include the following:
For more information about NetSuite OneWorld, please visit www.netsuite.com.hk.
Hong Kong Customer Wins:
Vita Green Health Products (www.vitagreen.com)
"Because NetSuite is a managed system, we are able to grow without adding more equipment and manpower to maintain servers and support new software," said Ronald Tse, director of Vita Green Health Products. "NetSuite's fast implementation and straightforward customization allowed us to quickly implement a business solution that is both powerful and easy to use."
Eco Technology International Limited (www.ecotech-intl.com)
"NetSuite is the perfect fit for us," said Roy Loh, Business Development Manager at ECO. "It continually helps us to optimize workflow and thereby improve our efficiency and raise customer standards. We use NetSuite for our accounting, CRM and marketing automation, and are able to provide faster response times with fewer errors — and reduce our own administrative costs at the same time. With all corporate information properly logged, we can calculate what works best, or what combination of procedures will work best, and thereby save money."
Pricing and Availability of NetSuite OneWorld
Cautionary Note Regarding Forward Looking Statements
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 filed for the financial quarter ending 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.
Source: InvestHK.gov.hk, http://www.investhk.gov.hk/pages/1/340.html, accessed September 19, 2008.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite, Inc. Other marks are the property of their respective owners.