NetSuite vs SAP Business ByDesign
Last updated: July 29, 2016
NetSuite is the leading vendor of cloud-based Software-as-a-Service integrated business management software for mid-market enterprises and divisions of large companies. NetSuite's cloud business management system including ERP / accounting, order management / inventory, CRM, professional services automation (PSA), and Ecommerce.
SAP Business ByDesign is a fully integrated on-demand Enterprise Resource Planning (ERP) and business management software solution for small and medium sized enterprises
2016 - Oracle buys cloud ERP provider NetSuite for $9.3B to take on SAP Business ByDesign
Oracle will acquire NetSuite for about $9.3 billion. Both Oracle and NetSuite’s cloud service offerings aimed at enterprise customers will continue to operate and “coexist in the marketplace forever,” according to a statement by Oracle CEO Mark Hurd. Eighteen-year-old NetSuite claims a dominant position in the cloud enterprise resource planning (ERP) space, which includes offerings to help businesses track supply and demand, inventory, accounting, customer relationships (CRM) and HR. The ERP industry has been an active space for M&A and general consolidation over the past few years, and Oracle in general has been an aggressive acquirer of smaller companies throughout 2016, with recent pick-ups including Opower and Textura.
2012 - SAP became NetSuite's customer. Business ByDesign will be closed
Most of all NetSuite loves trolling its rival - SAP. From time to time they organize anti-SAP conferences, marketing campaign a la Business ByNetsuite and produce videos like that one above. And they haven't missed the opportunity to joke on SAP at this time. At the opening of the conference SuiteWorld, Zach Nelson (CEO of NetSuite) took the stage and announced that in the past year the company has achieved their biggest ever win: ERP-giant SAP has become NetSuite's customer. The audience was shocked, and then Zach explained.
As you know, recently SAP acquired SuccessFactors, and this company was using NetSuite. Thus, SAP has become the user of NetSuite. And though after the purchase SuccessFactors has been transfered to SAP's own ERP system, but the NetSuite subscription was still extended and formally NetSuite is still a ERP-provider for SAP.
NetSuite always had a reason to make fun of SAP because of its project SAP Business ByDesign. It's a SaaS ERP for small-medium businesses, which was supposed to become a rival for NetSuite. But first it couldn't launch for 3 years, and now, 2 years after launch - its going to be closed. The new head of Cloud strategy at SAP (former SuccessFactors CEO) Lars Dalgaard yesterday announced that Business ByDesign will be converted into a package of simple and specialized applications: HRM, CRM, SCM and financial system.
SAP explains the failure by the reluctance of companies to transfer their entire IT system to the cloud. They say businesses now prefer to move to the cloud separate applications, such as human resources management. However, NetSuite's example shows that this is not the case. More likely that SAP, that was always working with large companies, could not find a proper way to SMB market.
2010 - NetSuite fights hairballs. But makes one with Google Apps
NetSuite marketing team is well known for its sense of humor. But before their humor was mainly inspired by SAP and its "stealth" launch of SaaS solution SAP Business ByDesign (that let NetSuite make its business). By the way, it's interesting that actually NetSuite drives away Oracle's customers as well as SAP's, but with respect to Oracle, the NetSuite marketers behave much more modest, because the Oracle CEO, Larry Ellison in co-owner of NetSuite. But let's go back to hairballs. What is it? According to NetSuite, the hairball - is a thing that happens when a company deploys disparate IT systems and then tries to integrate them. The conclusion is simple - use NetSuite, where everything is natively integrated. In addition to funny video NetSuite unveiled the updated system interface and seamless integration with Google Apps:
Integration with Google Apps includes:
- Single sign-in
- attach emails from GMail and files from Google Docs to records in NetSuite (contacts, projects ...)
- view contact information from NetSuite directly in a GMail message (by GMail gadget)
- sync NetSuite calendar with Google Calendar
- display information from NetSuite in Google Desktop
2010 - SAP acquired Sybase to get the cloud database and mobile apps to catch up with NetSuite
The world's largest enterprise software vendor, SAP has become even more large. For $5.8 billion SAP has acquired Sybase, the company primarily known as one of the leading database and enterprise mobile applications vendor. Until now, SAP didn't have its own database and provided customers a freedom of choice in this matter. At the same time SAP was reselling about a billion dollars worth of Oracle databases - a bad idea considering SAP and Oracle are in direct competition. However, it is unlikely that Sybase database will replace all other database middleware in the traditional SAP ERP deployments. On the other hand, it can be very useful for cloud deployments and creation of the own SaaS platform for SAP Business ByDesign. Because Sybase has recently released the cloud version of its database, which is primarily designed for Amazon EC2.
In addition to cloud computing tools, SAP also gets a wild card on the hot market of enterprise mobile applications. Sybase Mobile platform allows to create applications for all popular mobile platforms (iPhone, Windows Mobile, Symbian, Palm WebOS, Android and BlackBerry) and provides the high level of security. By the way, SAP and Sybase have long history of cooperation in this sphere and have already created mobile clients for SAP Business Suite and SAP CRM. Perhaps now that cooperation will become even more productive.