NetSuite ERP adds CPQ, workforce management applications

Need for improved scheduling software

NetSuite's new applications provide functionality that customers need, said analyst Brian Sommer, founder and president of TechVentive, a technology advisory firm in Carmel, Ind.

SuitePeople Workforce Management, for example, has capabilities that businesses -- particularly retailers -- need in today's volatile employment environment, he said. Scheduling is a critical issue for employers and employees, but until recently, it has never been a big focus in HR software applications.

"Scheduling is probably the No. 1 pain point that employees have in retail firms, because not only do they need flexibility in how their schedules are set up, they also want to get as many hours as possible," Sommer said. "The spreadsheets that a lot of the NetSuite customers are usually using to do that function today are just so inadequate."

NetSuite CPQ has been well integrated with other NetSuite applications, he said. While CPQ is usually associated with manufacturing companies, NetSuite CPQ can also work with distributors and retailers.

However, NetSuite could make the CPQ application more complete by adding functionality for professional services, Sommer said.

"We're seeing CPQ come in services from vendors like FinancialForce with a strong professional services automation background," he said. "That may be the next new area that [NetSuite] will move into as a CPQ capability as well."

CPQ is "a must" for ERP vendors these days, according to Predrag Jakovljevic, analyst at Technology Evaluation Centers. But as the NetSuite CPQ is primarily aimed at product-based companies, he agreed that NetSuite might want to acquire CPQ designed for services, given the number of professional services customers it has.

Overall, the new applications are all sensible additions that should help NetSuite compete in the midsize enterprise ERP market, Jakovljevic said. The acquisitions of Verenia for CPQ and Adi Insights each provided NetSuite with new needed functionality.

"SuitePeople Workforce Management gives them capabilities like scheduling and wage compliance, so they no longer have to lose market share to [HR software vendor] UKG," Jakovljevic said.

NetSuite's reported growth from 27,000 to 32,000 customers in the last year is impressive, a trend that should continue as it expands into regions where it has not had a significant presence, such as Brazil and India, he said.

"In the short term, NetSuite will ride the cloud growth curve and flourish," Jakovljevic said. "The question is, what happens when growth slows? What's the next chapter -- or will Oracle do something unwise, which will effectively neuter them?"

Although NetSuite has indicated in the past that it would work more closely with corporate parent Oracle to add more advanced Oracle technologies into the NetSuite ERP platform, there were no specifics about this at SuiteWorld, Sommer said.

"They are possibly saving some big headlines for the future," he said.

Jim O'Donnell is a TechTarget senior news writer who covers ERP and other enterprise applications for TechTarget Editorial.