SAN JOSE, Calif., May 17, 2016 /PRNewswire/ -- NETSUITE
SUITEWORLD 2016 -- NetSuite Inc. (NYSE: N), the industry's
leading provider of cloud-based financials / ERP and omnichannel
commerce software suites, today announced SuiteBilling, a new
product release designed to enable businesses to adopt any business
model from product-based, to time- and services-based, to usage-
and subscription-based, or any combination of these without limit.
SuiteBilling unifies both the billing and revenue recognition
processes regardless of business model with complete controls and
auditability, helping businesses comply and reduce risks. Built
natively into NetSuite's core ERP system, SuiteBilling delivers
a degree of functionality and business value that are
unmatched by any other competing product. It is the industry's
first and only comprehensive cloud solution that synchronizes
complex processes from order to billing to revenue recognition, all
within one system.
Billing Moves from the Backroom to the Boardroom
Billing is often thought of as a mundane but necessary task,
treated as a standardized process created solely to collect payment
on a sales order. However, as technology is becoming a component of
every business process and cloud adoption continues to grow, every
company is being forced to rethink its business model. Product
companies are adding services, while services companies are
developing and selling products. In addition, hybrid business
models are emerging with a mix of different offerings, packaging
and pricing bundles.
As companies are innovating their business models, billing plays
a key role. Can you price your products in new and innovative ways
to maximize revenue? Can you bill your customers the way they want
to buy from you without an army of accountants with spreadsheets?
Can you provide customers with a transparent billing experience to
reduce disputes, days sales outstanding and customer attrition? All
of these questions are top of mind for businesses and their
executives as they develop new business models.
Market Opportunity and Competitive Landscape
According to MGI Research, an independent research and strategic
advisory firm focused on the needs of business and finance
executives making technology-related decisions, the cloud billing
market will grow from $1.1 Billion in
2016 to $5.5 billion in 2020, at an
estimated compound annual growth rate of 49%. MGI Research also
estimates that companies will spend over $194 billion on billing - an aggregated number
that includes labor, deployment, technology services, upgrade costs
and maintenance.
Traditionally, businesses have had to use multiple, disparate
systems – one or more for billing, one for order and one for
revenue recognition -- leaving customers to cobble together manual
processes and complex integrations to manage business processes and
accurately recognize revenue.
"Monetization – which is how efficiently and effectively demand
is created and translated into revenue, profit and market
differentiation – is essential to today's growth initiatives like
IoT, digital business, and omnichannel. The concept of an
Agile Monetization Platform, which brings together nine functions
such as financials, order management, billing, revenue recognition
and commerce, is gaining traction among progressive
companies. With SuiteBilling, NetSuite is adding one of the
key elements of AMP," said Igor
Stenmark, Managing Director at MGI Research.
NetSuite Accelerates Innovation, Releases the Industry's Only
Cloud-based Unified Order-to-Bill-to-Revenue Recognition solution
for any Business Model
In recent years, dramatic shifts in the marketplace like the
Internet of Things (IoT), the emergence of services attached to
products and trends towards subscription-based pricing, have
transformed the importance of the billing process. Many businesses
have shifted from a transaction-focused relationship with the
customer to a relationship that needs to be built and nurtured.
Additionally, companies are facing pressures to launch, build and
grow recurring revenue streams as a means to compete in the
marketplace, build profitability and grow. That demands a solution
that can account for the complexities of different and hybrid
billing models. Meanwhile, different billing scenarios, whether
it's delivering a product for product-based companies or milestones
for project-based companies impact revenue differently, making the
amount billed and the amount recognized different over time. At the
same time, as these new billing models introduce additional
complexities around how and when to recognize this revenue, the
revenue recognition standards are changing quickly, introducing
risks of noncompliance and added costs or lost revenue.
NetSuite SuiteBilling gives businesses unprecedented control and
flexibility over products and pricing, while enhancing the customer
experience by improving transparency and focusing on value
delivered vs. the cost, all while supporting the new accounting
standards. NetSuite provides a single system to manage orders from
multiple sales channels, and to manage billing and revenue
recognition that supports compliance with revenue recognition rules
such as revenue arrangements with multiple elements (ASC 605-25)
and percentage-of-completion accounting (ASC 605-35), while
providing a foundation to prepare for adopting ASC 606 in the
future. Additionally, NetSuite's cloud-based architecture, with the
flexible and powerful SuiteCloud development platform, enables
customizations that carry forward automatically with every upgrade
and provides a robust ecosystem of complementary solutions.
NetSuite gives companies unprecedented control over their
billing and revenue recognition processes. SuiteBilling provides:
- A Core Framework, allowing for internal NetSuite
subscription management, project and fulfillment modules to
directly leverage core billing, revenue recognition and financial
elements and processes via billing accounts and charge
records.
- Enhanced Order to Revenue. NetSuite's superior and
highly scalable order management functionality can process orders
coming in from multiple channels and centralize them within one
single system while advanced revenue management capabilities
support multi-element arrangements.
- Role-Tailored User Experiences. Billing and Revenue
Work-Centers designed specifically for billing specialists and
revenue accountants, respectively, streamline key workflows and
help users to complete their critical business activities more
quickly and easily.
- Subscription Management, supporting subscription- and
usage-based pricing models and rating (simple and advanced).
- Unified, but Independent Approach, allowing invoicing
and revenue recognition processes to work seamlessly together while
meeting the specific independent needs of each process.
- Rich, Customizable Customer Billing Portals, based on
NetSuite's industry-leading ecommerce platform, enable companies to
deepen and expand customer relationships.
"As the cloud pioneer, with more than 30,000 customers spread
across diverse industries and innovative business models, NetSuite
has a front-row seat to the impact of digital disruption on billing
and revenue recognition," said NetSuite President and Chief
Operating Officer Jim McGeever.
"With SuiteBilling, we're giving our customers a next-generation
solution to win in the marketplace today and future-proof their
business for change tomorrow."
Today, more than 30,000 companies and subsidiaries depend on
NetSuite to run complex, mission-critical business processes
globally in the cloud. Since its inception in 1998, NetSuite has
established itself as the leading provider of cloud-based
financials/enterprise resource planning (ERP) and omnichannel
commerce software applications for businesses of all sizes. Many
FORTUNE 100 companies rely on NetSuite to accelerate innovation and
business transformation. NetSuite continues its success in
delivering the best cloud business management software to
businesses around the world, enabling them to lower IT costs
significantly while increasing productivity, as the global adoption
of the cloud accelerates.
Follow NetSuite's Cloud blog, NetSuite's Facebook page and
@NetSuiteEMEA Twitter handle for real-time updates.
For more information about NetSuite, please visit
www.netsuite.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements relating
to expectations, plans, and prospects including expectations
relating to deployment of SuiteBilling. These forward-looking
statements are based upon the current expectations and beliefs of
NetSuite's management as of the date of this release, and are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those described in the
forward-looking statements including, without limitation, risks
associated with material defects or errors in our software.
All forward-looking statements in this press release are
based on information available to the Company as of the date
hereof, and NetSuite disclaims any obligation to update these
forward-looking statements.
NOTE: NetSuite and the NetSuite logo are service marks of
NetSuite Inc. Third-party trademarks mentioned are the property of
their respective owners.
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SOURCE NetSuite Inc.