Software As A Service Based Financial And Enterprise Resource Planning

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As of 2014, NetSuite was a leading provider of cloud-based financial and enterprise resource planning, as well as omnichannel commerce software. Cloud-based computing uses the internet to deliver applications and software companies from a remote server. By doing this, companies were able to eliminate the cost of installing and maintaining infrastructure used to store these applications and other services. NetSuite would typically charge a subscription fee for a pre-arranged amount of time. The companies that benefit from these services the most are medium-sized companies, as opposed to large enterprises. This is because the cloud applications require substantially less capital to build, maintain, and purchase software. Additionally, …show more content…

This means that the actual computing for these services is done via the “cloud” or off-site, so the medium sized companies can access everything via a single comprehensive business suite without the worry of multiple services and having the computing power necessary to manage different products. These services are licensed for a much shorter period of time, monthly, quarterly, or annually, so there is a much lower cost of switching between services.These services generate the actual revenue through direct and indirect methods with almost all sales conducted over the phone. The direct sales are a product of direct contact with medium sized companies or units of larger companies while the indirect sales are from relationships with channel partners across many different sales regions, NA, LA, EU, and AP. The key success factors to its business line were maintaining a comprehensive product that was affordable to mid-sized companies and sufficiently differentiated from competitors’ products. The comprehensive aspect is demonstrated by the ability to be a completely one-stop suite for these companies with offerings across all functions, ERP, HRM, financial management, etc. The affordability aspect is primarily a byproduct of not requiring a significant upfront cost to the companies and a licensing model with shorter periods of subscription, the maximum of which is a year. Additionally,

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