Transforming Your Business ManagementWith Cloud ComputingAccounting & Finance Leadership Forum, Richmond, VAJune 9, 2011

Leon J. Schwartz, Director of Sales, ERP Guruleon.schwartz@erpguru.com 1.877.664.1023 ext.110

David E. Bosher, CFO, SnagAJob Inc.

About ERP Guru

NetSuite Solution Provider since 2005− Service over 280+ NetSuite customers

– 68% active year over year, 32% request occasional service or one-time services

Certified & Authorized for NetSuite Products− NetSuite

– Accounting, Project Accounting, Sales Force Automation (SFA), Customer Service/Support, Web Site/Web Store

− NetSuite Manufacturing

− NetSuite OneWorld

NetSuite Authorized Solution Developer 20 NetSuite Consultants, 3 Analysts, 5 Sales/Marketing/ Admin

The Advent of the Business Cloud

1Technology

affecting financeand IT

# 54Planning or Interested in Cloud

%

GROWTH6X

© NetSuite 2010 4

Automated backups,

uptime, SLA,maintenanceSolution

hosted by vendor

Automatedupgrades

Web and mobile -

access from anywhereModern web

based integration

Elastic, pay as you go –scale up or

down

SaaS SMB Adoption Cycle

CloudFinancials

CloudHCM

CloudCRM

CloudProductivity

Innovators Early Adopters Early Majority

0-2 yearsto peak

2-5 yearsto peak

SaaS Financials Adoption for 2011:

© NetSuite 2010 6Source GartnerUser Adoption Survey, Sep 2010

Fastest Growing FinancialsProvider is Cloud

Market Share: All Software Markets, Worldwide, 2010April 2011

Source: GartnerChart created byNetSuite based onGartner market share note

• NetSuite is growing market share the fastest in the top 10• NetSuite is now the 8th (10th in 2009)

largest FMS vendor by share in North America• NetSuite is the only pure cloud ERP vendor on this list

Why the Shift?

Extra IT personnel and hardware, softwareand infrastructure overhead

PLUS

Typical IT Budget Allocation

91% Maintenance

9% Innovation

9

Current 66% on old

versions

Source: ERP in SME, Aug 2010

On-Premise Holds the Business Back

Greater need for business

visibility

Local sales tax changes

Increasingly distributed business

More selling channels

Shrinking IT resources

Launching new subs and

geos

New businessmodels

Changing financial reporting

Version Locked Business ManagementSoftware is a Liability in a Sea of Change

Business Have Evolved Multiple Systems

Deploy Great Plains

Added Excel for analytics

Added Act, Goldmine, or Salesforce.com

Built a homegrown website

Upgraded Great Plains, or added more seats

Over time: more money, more resources, more integrations

2

1

3

4

5

And Ended Up with an Applications “Hairball”

What Businesses Are Looking for in Their Next ERP

Reduce overall IT maintenance

costs23%

Better support a distributed

organization 17%

Need to Streamline cross

functional business

processes32%

Require more sophisticated functionality

12%

Need a system with better scalability

7%

Improve business visibility

9%

N=809

14

Why Run Your Business in the Cloud?

Stay abreast of latest accounting and regulatory changes

More easily scale a distributed, global organization

Reallocate IT budget from maintenance to innovation

Get automated upgrades and eliminate “wasted” maintenance

Benefits from economies of scale for security and data mgt.

Use a modern, more easier to integrate solution

Typically get more tightly integrated analytics

Cloud computing enables businesses to:

Productivity Benefits Cited as Key Drivers for Cloud ERP:

Speed of deployment

3%

Lower cost of ownership

14%

Access data from anywhere

at anytime38%

Instant access to new functionality

10%

Lower upfront expenditure

4%

Streamlined business

processes31%

N=805

Cloud Enables the Distributed Organisation

Todays organizations are increasingly distributed

Ideal for inherently distributed activities:– Financial Planning– Selling and Order Taking– Distributed finance team

Facilitates off-shoring / shared services

Easily supports temporary and home workers

Real time view into centralized data

#1 Benefit of Cloud ComputingReported by Finance Executives

On Premise ERP vs Cloud ERP TCO

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Dynamics GP and CRM NetSuite

50% Reduction in Overall TCO

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Dynamics GP and CRM

NetSuite

80% Reduction in IT Headcount Costs

50% Reduction inTraining Costs

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Dynamics GP and CRM NetSuite

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

Dynamics GP and CRM NetSuite

100% Reduction in Infrastructure Costs

4 Year TCO, 100 Seats

Keys to Cloud ERP Success:ERP that Improves Organizational Efficiency

Trait Business Benefit

Quote to cash integration Reduce cycle time and overhead

Procure to pay integration Eliminate spreadsheets

Web based T&E management Improve employee productivity

Comprehensive audit trail Reduce audit times and improve compliance

Self servicedashboards & reporting

Reduce time spent “hunting”Collaboration and “actionable

One view of the customer Improve team collaboration, reduce redundancy

Trait Business Benefit

Support multi-sub and COAs Manage consolidation times as business grows

Country specific tax and accounting regulations

Eliminate need to add ERP to support local needs

Automated sales tax management Calculate sales taxes across channels and geos

Drill down from corporateto subsidiaries

Ensure straight line visibility from HQ to geos

Multi-language management Ensure you can localize solution to geo needs

Keys to Cloud ERP Success:ERP that Supports Growth

Trait Business Benefit

Comprehensiveweb services integration

Integrate with suppliers, channels, and services

Graphical workflow management Empower line of business to automate business process

Managed customization layer Ensure that customizationswill not “version lock” application

Mobile and anywhere access Support the distributed organization

Industry functionalityand ecosystem

“Future proof” application

Keys to Cloud ERP Success:ERP that Supports Business Flexibility

Remember the “Hairball”?

You Can Now Run Your Entire Business in the Cloud

CEO CFO

Sales Rep/Manager

Support Manager

EcommerceManager

ShippingManager

Customers

Vendors Partners

ECOMMERCE

CRM+

FINANCIALS

PSASINGLE DATASOURCE

AMERICAS APACEMEA

Worldwide HQ

And Scales to the Global Business

ECOMMERCE

PSA

FINANCIALS

CRM+SINGLE DATASOURCE

ECOMMERCE

PSA

FINANCIALS

CRM+SINGLE DATASOURCE

Currency

Quota

Forecast

Orders

Taxation

Partners

Language

Website

LOCAL

15 Languages, 190+ Currencies

Consolidation

Sales

Revenue

Dashboards

CurrencyManagement

Compliance

Control

Many Websites

GLOBAL

Integrated Process = Real Time Visibility

Analytics + Cloud = Easier to Access Analytics from Anywhere

• Browser

• Email / Alerts

• Mobile devices

• Push and pull

• Work / home

SuiteCloud Platform: Powers Complex Customization & Application Extensions

Infrastructure

Application

Developer Tools

On-Premise Style:

Manage It Yourself

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

Fina

ncia

ls

CRM

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

MigrateEcom

mer

ce

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

Cloud + Suite Drives Results….

CloudStyle

Suit

e (e

x: N

etSu

ite)

HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION

Subscribe

Measured Cloud Suite Benefits

Reduction in financial

close

20%-50% 25%-75%Reduction in

invoicing costs

10%-20%Improvement in

DSO

Quote to cash improvement

50%+ 50%+Reduction in

audit preptime

50%+Less IT costs

thanon-premise

Source: Nucleus Research, SMB Group, and Customer Case Studies

Businesses Run Better with Cloud NetSuite

Improvement area Business Result Company

Accounting efficiency Monthly close reduced by 50%

Reduces accounting costs by 20%

Financial close from weeks to 4 days

IT efficiency Saves approximately $250,000 annually

Rolls out cloud ERP in just 6 months to 10 subsidiaries

EmployeeProductivity

Services revenues lifted by 20 percent

Grew 350% in 6 years without adding staff

Security35%

Ownership of the data12%Ownership of the

application4%

Reliability14%

Maturity vs. On-Premise

8%

Customization18%

No substantial concerns

9%

Concerns About the Cloud

N=805

Cloud Can Be More Available:NetSuite Uptime History

2010

Source: NetSuite Service Level History

Moderate to Heavy Vanilla

79% 21%

74% 26%

75% 25%

76% 24%

Typical ERP Customization

• Database customization

• Custom dashboardsand reports

• Custom forms

• Custom scripts

• Custom workflows

• Custom integrations

Source: Panorama Consulting

Customizable (without version lock)

LATEST VERSION

NetSuite’s Cloud Datacenter

99.5% uptime SLC commitment99.98% 12 months trailing uptimeServe 4BN+ customer requests per month2.2M+ unique logins per quarterSupports 7,000+ customersJust 20 minutes maintenance per week2 automated upgrades per year2 data centers1 code base

EU-US Safe Harbor Compliant

PCI-DSSCompliant

PCI-DSSCompliant

© NetSuite 2011 35

NetSuite’s Redundant Datacenters

Leading commercial construction manufacturer switches from SAP to NetSuite and saves nearly $300K annually

Moved from SAP to NetSuite reducing IT spend from 3% of revenue to 0.1%

Saves $250K+ annually by consolidating more than 12 subs with NetSuite OneWorld

Americas unit of world's largest producer of solar panels chooses NetSuite

$800M Oracle shop chooses NetSuite OneWorld for Asian subsidiary management

Cloud Computing Delivery Saves $M’s

Enterprises Powered by NetSuite and NetSuite OpenAir

CA Technologies RMDM Unit is using NetSuite OneWorld Ecommerce to direct new opportunities to its 13,000+ partners

Lloyds Register is deploying NetSuite OpenAir to 8,000 users in 227 countries– about 40% of their employees

NetSuite OpenAir is being used across 2,000+ employees in 59 countries - reducing administrative overhead by 8%

Siemens PLM is using NetSuite OpenAir across 2,700+ users in 15+ countries - and across 3,000+ client projects and 1,500+ products and skills.

Enterprises Powered by NetSuite

Replaced 92 instances of Microsoft Great Plains with 1 instance of NetSuite OneWorld

Leading provider of GPS solutions selects NetSuite Ecommerce to drive online sales

Leading Australian telco chooses to switchto NetSuite OneWorld from Oracle apps

Running NetSuite OneWorld in 15 locations across 7 countries for global consolidation

Global education company with 3,700+ locations lowers cost by 70% and gets 50-80% faster implementation than Oracle

RMDM Unit using NetSuite OneWorld Ecommerce across its 13,000+ partners

Proven Deliveryfor Your Industry and Size

The #1 Cloud ERP for Software Companies

The #1 Cloud ERP forWholesale Distributors

The #1 Cloud ERP forManufacturers

The #1 Cloud ERP forServices Companies

The #1 Cloud ERP forRetail / Ecommerce

The #1 Cloud ERP forGlobal Businesses

Rich Cloud Ecosystem for Your Industry

Software Companies

Wholesale Distributors

Manufacturers

Services Companies

Retail / Ecommerce

www.suiteapp.com

Why NetSuite?Your Strategic Partner Customer Success Commitment

Security, Availability, Control Unlimited Customization

10,000+ organizations run NetSuite

400+ services professionals

Extensive partner ecosystem

90%+ satisfied/highly satisfied

Public, global business

#1 most deployed cloud ERP

Cash flow positive

$100M+ in cash

$35M+ in R&D

99.97% uptime

128-bit banking level security

Complete access to your data

SuiteCloud customization

SuiteApp.com market place

No version lock