Penguin Computing Replaces SAP R/3 for Better Visibility and Control with NetSuite

Penguin Computing


Penguin Computing


Fremont, Calif.


Computer Hardware

Applications Replaced



Work Orders and Assemblies
Advanced Inventory

"We're more efficient on NetSuite than we were on SAP and we have real-time visibility into all aspects of the business. It's mind-blowing how easy it is to find and access information in NetSuite compared to where we were before." Penguin Computing

Customer Success

  • Leading provider of Linux-based and high performance enterprise computing solutions has gained new scalability, visibility and business control since replacing SAP R/3.
  • Penguin Computing uses NetSuite as a single system of record across financials, revenue recognition, work orders and assemblies, and inventory management.
  • Transparency into key business metrics has enabled informed, data-driven decisions that grow the business beyond 2,500 customers in 40 countries.
  • Penguin Computing has eliminated integration hassles, high maintenance fees and version lock issues with its problematic SAP system.
  • Business users have on-demand access to real-time data and rich reporting capabilities not possible with in the previous SAP environment.
  • NetSuite Work Orders and Assemblies module supports build-to-order production at California headquarters with capabilities for work orders, bin management, assemblies and work in process.
  • NetSuite revenue recognition streamlines diverse revenue streams across both usage-based and recurring subscription models.
  • NetSuite inventory management functionality improves speed and precision in sourcing thousands of components from 12 core suppliers and 50 less-used suppliers.
  • Phase two rollout of NetSuite Demand Planning and WIP will give Penguin Computing new capabilities in production, inventory forecasting and replenishment.
  • IT staff efficiency has increased 30% without the stress and overhead of managing on-premise IT infrastructure.
  • Penguin Computing retired three servers with its move to cloud ERP, saving money as well as time for IT personnel.
  • Cloud architecture and SuiteCloud Development Platform for customisations and third-party integrations gives Penguin flexibility in evolving the business.


  • Business users had poor visibility into data in the cumbersome SAP R/3 system, relying on IT for report generation and troubleshooting.
  • Penguin was forced to resort to costly third-party consultants to maintain the aging system, implemented in the early 2000s.
  • The company began exploring its options when SAP announced it would be ending support for the SAP R/3 4.6D version in place.


  • NetSuite was the only cloud ERP vendor to meet Penguin’s requirements for simplicity, rich functionality, ease of use and a robust API for customisation.
  • Integration between NetSuite and Penguin’s CRM instance, which had not been integrated with SAP, gives Penguin sales reps greater automation and visibility.
  • Rapid three-month self-implementation with assistance from NetSuite Professional Services helped Penguin Computing accelerate time to value from cloud ERP.

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