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.
Launched in the Hong Kong market today, NetSuite OneWorld allows companies to manage their multinational and multi-subsidiary business operations, in real-time around the world. It integrates the key business management functions across the enterprise, from customer relationship management (CRM) to enterprise resource planning (ERP) and Ecommerce.
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:
- Manage local operations across multiple locations, and roll the data up for regional and global visibility in their currency of choice.
- Adjust for language, currency, taxation and legal compliance differences at the local level, with regional and global business consolidation and control.
- Bring a newly acquired or created subsidiary online quickly into a consolidated management view, supporting acquisition or rapid expansion of the business.
- Reduce costs by staffing operations centrally so that the same employees can handle operations across multiple subsidiaries.
- Make informed executive decisions and timely course corrections based on key company metrics that are visible and measurable in real-time across all business operations.
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:
- NetSuite OneWorld allows companies' back-office ERP operations to have local control over accounts receivable, accounts payable, payroll, inventory, billing, invoicing and order fulfilment, yet still consolidate and roll up multi-currency financials in real-time from local operations or independent subsidiaries to the regional office and global headquarters.
- NetSuite OneWorld makes global Ecommerce operations feasible with multi-site, multi-currency and multi-language capabilities; local tax compliance; and local inventory sourcing capabilities.
- NetSuite OneWorld provides global CRM to improve global selling with multi-currency quotas, forecasts, commission payments, sales tax calculations and real-time reporting.
- NetSuite OneWorld delivers real-time analytics that allow global organisations to make timely course corrections, rather than having to wait so long for research to be completed that often the question to be resolved becomes moot.
For more information about NetSuite OneWorld, please visit www.netsuite.com.uk.
Hong Kong Customer Wins:
The newest customer wins announced today include:
Vita Green Health Products (www.vitagreen.com)
As an example of the benefits that NetSuite OneWorld brings to multinational businesses, NetSuite announced at today's Hong Kong event that Vita Green Health Products, a leading provider of vitamins and health products based in Hong Kong, has gone live on NetSuite OneWorld to manage and consolidate its activities from manufacturing to point of sale, providing an integrated view of these activities; powerful, real-time reporting; and dashboards that are available to Vita Green executives from any Internet connection.
"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 customisation allowed us to quickly implement a business solution that is both powerful and easy to use."
Eco Technology International Limited (www.ecotech-intl.com)
Hong Kong-based office-supplies company ECO Technology International Limited transformed its operations using streamlined workflow technology from NetSuite. The result is a better standard of customer service — a vital key to success for a local business in a highly competitive market.
"NetSuite is the perfect fit for us," said Roy Loh, Business Development Manager at ECO. "It continually helps us to optimise 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
NetSuite OneWorld is available now by contacting the NetSuite Hong Kong office. It is offered for HK$18,000 per month.
NetSuite Inc. (NYSE: N) is a leading vendor of on-demand, integrated business management software suites for mid-sized businesses and divisions of large companies. NetSuite enables mid-market companies to manage core business operations in a single system, which includes accounting / enterprise resource planning (ERP), customer relationship management (CRM), and ecommerce. NetSuite's patent-pending "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information. For more information please visit www.netsuite.co.uk.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating the expected growth of NetSuite's business in the Asia Pacific market as a result of the availability of NetSuite OneWorld service in Hong Kong and the expected impact of that service on customers' ability to grow globally. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for on-demand services may develop more slowly than expected; legal and operational complexities in growing the NetSuite business internationally; risks associated with material defects or errors in the Company's software or the effect of undetected computer viruses; the risk of technological developments and innovations by others; risks associated with any unexpected disruptions in the company's service or any security breaches that could develop; and general economic, market, or political conditions may deteriorate in the Asia Pacific region.
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.co.uk.
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.