NetSuite is surging ahead with plans to expand its footprint in Asia by utilizing resources from parent company Oracle, which acquired the San Mateo-based cloud-ERP firm last year in a $9.3 billion deal.
These resources include office space, R & D facilities and data centers, shared Lee Thompson (pictured, second from left), VP for APJ at NetSuite during NetSuite’s SuiteWorld 2017 conference in Las Vegas.
In ASEAN, NetSuite has offices in the Philippines and Singapore, where its sales and marketing functions are based.
“With the acquisition now complete, we’ve been able to fast forward our growth strategy and are now investing in many geographies where Oracle already has representation,” Thompson said, adding NetSuite’s plans include branching out into Malaysia, Thailand, Vietnam and Indonesia.
NetSuite’s strategy to expand its footprint in the ASEAN markets listed above include focusing on building its channel partner network and hiring local personnel to pursue small to medium business customers, particularly those operating in the distribution, manufacturing, retail and e-commerce spaces. NetSuite currently has some 80 channel partners in the APJ region. NetSuite personnel hired in markets where NetSuite has no direct presence will operate out of Oracle’s field offices, starting with China, India, Malaysia and New Zealand.
According to Thompson, Oracle and NetSuite’s partner programs will be kept separate for now, with no immediate plans to merge the programs or alter prices. “It’s not our intention to force anyone down the path of any technology. Oracle has a good product for larger enterprises, but our sweet spot is with the mid-market.”
Thompson added that Oracle customers who express interest in NetSuite solutions will be supported by a consultancy team that will work on making both products complementary to each other. “Our intention is not to cross-sell here.”
DC and R&D resources
Oracle’s acquisition of NetSuite has been widely interpreted as the former’s attempt at gaining a foothold in the growing cloud market, a challenge many legacy IT firms grapple with.
Oracle’s support of the cloud will see NetSuite utilize the former’s existing data centers in Asia and Europe to support growth. NetSuite currently operates five data centers (three in North America, one in Amsterdam, one in the Netherlands and one in Ireland) with none in Asia, although facilities are being planned for Australia and Singapore, followed by Japan and China. Plans are in place to add a fourth data center in Chicago and second data center in Frankfurt.
Part of NetSuite’s growth plans include taking advantage of Oracle’s development centers in China, India and Japan, with the aim to speed up development of features and functionalities within its flagship OneWorld product.
“When working in Asia, customers wish to see and have a relationship with you,” said Zakir Ahmed (pictured, far right), senior sales director, Asia at NetSuite. “We’re seeing interesting momentum in markets such as Malaysia and Thailand but were hampered by having no direct presence before, but we’ll now be able to hit the ground running.”