THE VALUE OF A TRUE CLOUD ERP PLATFORM NetSuite Perspectives TABLE OF CONTENTS 1 2 Executive NetSuite: The Assessment Summary Value of a True Scorecard Cloud Platform – Key Differentiators Page 3 Page 5 Page 11 3 4 SuiteSuccess – Next Steps Zero to Cloud in 100 Days Page 20 Page 21 Grab a seat and enjoy. Read Time: 21 minutes THE VALUE OF A TRUE CLOUD ERP PLATFORM NetSuite Perspectives Our Experience many of cloud’s benefits and experience a Today, cloud computing is at the forefront of variety of pitfalls. the shift to the digital business and enabling In the current state of the market, not all cloud companies to adapt to these changing providers can step up to the challenge of models, both strategically and operationally. providing an integrated offering, and that forces Companies with a cloud-first strategy have companies to manage more than they want to. learned that the cloud’s real value comes NetSuite Value Proposition with being able to delegate the Service As a leading Cloud ERP company, NetSuite has Level Agreement (SLA) of an entire solution, championed the cause to deliver not only a true from infrastructure to application, instead of cloud platform but also strived continuously to components. It is also widely recognized that develop a truly integrated suite for our growing integrated suites reduce complexity, increase global customer base of more than 40,000. reliability and cost less—it’s just that now, with cloud, the suite includes hardware, security Further, the SuiteSuccess customer and operations. Most agree that the cloud engagement model is already helping paradigm has cost and convenience benefits: hundreds of new customers deploy the availability, speed, agility and TCO, enabling platform faster and leverage leading business faster development processes and providing process practices to both create and realize higher reliability and lower risk. Companies value within their organization much sooner that take an ad hoc approach miss out on than traditional approaches. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 3 “Enterprises run the risk of getting nasty shocks when the thing they thought they were buying turns out to be something altogether different. Hosting and application management are not synonymous with SaaS.” — Gartner In this document we hope to provide you adapt to the industry disruptions of tomorrow our perspective on the components and and realize savings of more than 20%-50% scorecard to use to not only evaluate a true in Total Cost of Ownership (TCO) alone1 or cloud solution, but also analyze for yourself incur $64k-$242k annually in hidden or how our various platform offerings help you unexpected costs2. to meet your organization objectives today, Multi-tenant Single tenant Versionless Version locked Designed for Internet Pre-internet Flexible Inflexible Scalable Not Scalable TRUE CLOUD FAKE CLOUD aka "private cloud" or "hosted/hybrid" Reference: HBR – The CIO’s Guide to Cloud Computing 1 Hurwitz & Associates – The compelling TCO case for cloud computing in SMB, mid-market enterprises 2 NetSuite research and example analysis for a $10M revenue company Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 4 Chapter 1 NETSUITE: THE VALUE OF A TRUE CLOUD PLATFORM – KEY DIFFERENTIATORS Software-as-a-Service (SaaS) and Most customers share a common database Multi-Tenant Architecture instance with other customers. In situations where customers need higher performance, NetSuite offers Premium Performance Tiers with dedicated database instances. Some customers start on the shared database and migrate at Software-as-a-Service (SaaS) a later point to their own dedicated database. NetSuite is offered as Software-as-a-Service This last situation (a shared database) (SaaS). The applications are accessible via a would be considered as the highest degree web browser or mobile app. of multi-tenancy. Virtualization would, by Unlike on-premise software, NetSuite definition, then offer the lowest degree of customers do not have to be involved with multi-tenancy. managing the underlying cloud infrastructure Despite what fake cloud vendors will tell including network, servers, operating systems, you, multi-tenancy matters. For example, storage and application upgrades. with a true cloud provider, all customers typically access the same solution from the same cloud. This gives customers continuous and instantaneous access to the latest product upgrades. Multi-Tenant Architecture NetSuite has a single instance of the Shared application, Shared application, application. Each tenant can make shared database customizations and configurations that are rendered to the views they see and/or invoked when using the application. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 5 On-premises Hosted Cloud-based License Costs (One-time) Medium Low-Medium Low Software Maintenance Costs (Operational High Medium Low Costs/Year) Subscription Costs (Operational Costs/Year) Medium Low-Medium Low Overall Capital Costs High Medium Low IT Resources (Admin/Dev) High Medium-High Low Hardware/Storage High Medium Medium Upgrade Costs High Medium Low Implementation Timelines 12-36 Months 9-18 Months 4-8 Months Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 6 Preserving Your IT Investments There are three hub and spoke models: 1. All business units (headquarters and subsidiaries) use a single application instance. Public Cloud 2. Enterprise hub and business unit spoke NetSuite is offered as a public cloud use same application—but may have more deployment and has a single instance of the than one instance. application. This is aligned with our strategy 3. Business units choose from an approved to offer SaaS and a multi-tenant architecture list of spoke solutions which allows the that allows both our enterprise as well as subsidiaries to pick a solution that best suits small business customers to be on the same their requirements. For example, localized version of the application globally, allowing business units often need to address them to reap benefits from economies of specific customer billing and payments scale, less capacity planning, increased agility, practices, and local regulatory requirements. scalability and IT costs. Two-Tier ERP Strategy Two-tier ERP is a business and technology strategy that enables organizations to keep their investment in existing ERP systems, i.e. SAP or Oracle, while deploying cloud-based ERP, i.e. NetSuite, at newer subsidiaries. As large enterprise’s expand and restructure through mergers and acquisitions into larger companies, one of the strategies to preserve their existing ERP investments is to adopt a so-called hub and spoke approach to ERP. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 7 Application Stack ERP/FMS CRM PSA Software Retail Manufacturing Ecosystem 1000+ Partners 400+ SuiteApps Added Platform Benefits from Application Stack Global Mobile 100% Browser Global Search Reporting Digital Assets SuiteSocial Localization Tablets, Watch Independent Google Create Complex Manage Collaboration Management iOS Android the Suite Forms & Reports Unstructured Data Tools SuiteCloud Platform SuiteConnect SuiteScript SuiteTalk SuiteAnalytics SuiteBuilder SuiteFlow SuiteBundler Cloud Data Programmable Cloud App Built-in Business Point-and-Click Visual Workflow Cloud Application Integration Logic and UI Integration Intelligence Customization Implementation Distribution SuiteCloud Infrastructure Scalability Security Compliance Transparency Assurance Process Tests No Version Lock Enterprise Elastic SSAE 16 Type II PCI DSS 24x7 System Status 99.5% Uptime Pre-Production Overnight Capacity SOC1/ISAE 3402 SOX & Ops Guarantee Sandbox Upgrades Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 8 "NetSuite OneWorld has the flexibility to let us build financial controls over the way we do business, instead of trying to mold our processes to inflexible software." — Bankrate An Integrated Business Application Suite In an ROI study by independent analyst firm Nucleus Research, customers using NetSuite’s integrated cloud business suite accelerated their financial close times by Integrated Suite up to 50%, increase sales productivity by Companies in virtually every industry are 12.5% and increase inventory turns by 50%, using sophisticated business software to amongst other efficiencies. fuel their growth but many are still struggling to keep up with their growth and manage costs effectively because of a hodge- "NetSuite is our single source podge of disconnected functional systems of truth. Our people are very causing process bottlenecks and employee happy with NetSuite and are productivity issues. always looking for different Integrated business software suites are ways to optimize the solution." transforming how companies run, and — Dent Wizard enabling them to transcend growing pains that previously were holding them back from taking their business to the next level of profitable growth. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Page 9 Cloud business application assessment scorecard – hidden costs of $64k-$242k annually1 Cloud On-Premise Hosted/Hybrid The ability to quickly deploy new business Business Agility models and products, transact M&A and 0K 26K 20K complete divestitures. The capability to handle growth, create new Scalability 13K 25K 19K instance, launch internationally. Ability to adopt to potential changes