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NetSuite scores SAP kick-out on eve of SaaS announcement

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18th Sep 2007
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As SAP geared up to enter the world of Software as a Service (SaaS), the company most likely to face a competitive threat, NetSuite, has chosen the perfect moment to reveal that it had just replaced SAP at a customer.

Asahi Kasei Spandex America Inc (AKSA) has replaced SAP with NettSuite for key back-office operations – from accounting to inventory management to procurement to sales order management to financial reporting. AKSA estimates that it has achieved significant cost savings while at the same time adding enhanced functionality to help meet the complex needs of its business. The costs savings include reduced or eliminated costs of hardware, remote access and third party consultants.

“I was looking for a solution that would result in not only up-front but on-going savings,” said David Stover, chief financial officer of AKSA’s operations in Charleston. “SAP requires very specifically trained individuals to operate the system successfully. I needed a system that emphasises ease of use, intuitive processes and one that can be managed with minimal effort. After shopping around, NetSuite quickly became the obvious choice. NetSuite has an open, flexible strategy, thereby allowing quick and easy customisation. Its remote access is also a big plus for us. Financial reports are available at my fingertips from virtually anywhere in the world with internet access.”

NetSuite CEO Zach Nelson clearly relished the timing of the announcement. “While SAP’s announcement of A1S will answer some questions, it will raise even more," he said. "How will SAP be able to compete when its SAAS solution has no multi-tenancy? How will customers be able to run their business with limited customisation and no vertical editions? What are existing customers on obsolete mid-market offerings like SAP All in One and SAP Business One to do? “

“This is the 1.0 version of SAP A1S, so when stacked up against NetSuite’s current Version 12.0 product we don’t think there will really be any comparison on a functionality basis. However, we do believe the SAP announcement will be great for our business. SAP is telling customers that the future of business software for mid-sized companies is a suite of applications delivered on demand - and of course, the leading product in that category is NetSuite.”

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