Last Thursday Oracle announced its intention to acquire cloud financial software provider, NetSuite—a move that underscores the importance of the mid-market and of pure-play cloud ERP services and solutions.
There is a mass shift of mid-sized organizations moving to cloud ERP solutions. Intacct and NetSuite have been leaders in this space for well over a decade—albeit with very different approaches. With this news, prospects and customers should be concerned that NetSuite technology has been acquired by a company that had first dismissed the cloud, then had to buy its way in because Oracle couldn’t get the cloud right on its own.
Rapid innovation has been a hallmark of cloud software vendors, and what it takes to get the cloud right. Oracle is not built to innovate in business applications—its investors look for steady profitability, not growth; and Oracle’s customers must accept their long term value will not equal innovative strategies delivered by the best-in-class vendors like Intacct and Salesforce.com.
In addition, NetSuite technology will now be part of a company that has multiple ERP solutions. Customers now face significant short-term uncertainty that comes with that and must wait as Oracle sorts out the overlap between people and products—a constantly running process at Oracle and one that slows innovation even further.
Oracle, not surprisingly, stated it intends to “accelerate investment in NetSuite.” Yet the first reason Oracle gave for the acquisition was to sell Oracle products to NetSuite customers. That signals that investment won’t be focused on innovation, but integration—trying to link NetSuite with other outdated Oracle technologies as a means to increase cross-selling.
For the long term, Oracle’s strategic focus is on delivering breadth to large enterprise customers; meaning NetSuite technology is going to drift even further from what mid-market companies need: business solutions that are easy to use but handle the complexity and dynamic nature of your business, without requiring huge IT resources or expensive consultants.
Intacct believes that innovation, agility, and value are essential for rapidly growing mid-market companies. This acquisition aligns NetSuite with a company that’s built to serve slow-moving, large enterprises with large IT organizations and budgets, and that tries to extract the maximum amount of revenue from every customer. The fact is, Oracle has never been known as customer-friendly, and their customer satisfaction scores reflect that.
At Intacct, innovation and outstanding customer satisfaction is at the core of everything we do. At the end of the day it is our customers who matter and we need to earn their business every day. Our approach is working and it shows—we continue to grow at a rapid pace, with 40% year over year growth, and we’ve earned the top position in customer satisfaction for the industry. Intacct is three times better than Oracle according to customers that have rated each company on G2Crowd.
As Oracle goes through the rationalization of their product lines and organizational overlap, it’s business as usual at Intacct. For us, that means we will continue to deliver world-class innovative solutions and industry leading service just as we always do.
We look forward to taking advantage of this opportunity for the benefit of our customers and are excited for the path forward. From day one, Intacct was built to provide consistent, lasting customer value, and we will continue to fulfill this mission.