NETSUITE SIGNS TWO-TIER DEAL
NetSuite has signed Informatica to integrate its NetSuite Cloud with Tier 1 applications such as SAP and Oracle. It’s part of an emerging two-tier ERP approach in major corporations as explained this week by NetSuite CEO Zach Nelson at the Morgan Stanley Technology Media & Telecom Conference in San Francisco. Informatica integrates financials from the NetSuite product at the departmental or divisional level with data from the enterprise application.
Nelson said the approach is spurred by the fact that companies which ”haven’t touched their ERP system in a decade, probably not since the year 2000,” are unlikely to rip those out to accommodate growth in new areas. Instead, corporate keeps the enterprise application and puts in a product like NetSuite, say in a new geography like Asia. NetSuite thinks it can capitalize on this trend. “We see the opportunity today in these fast growing subs,” he said. “You can connect subsidiary financial systems with corporate-level systems.”
