NetSuite will offer Version 10 of its application services in a more componentized delivery model, allowing smaller customers to add functionality without having to upgrade their entire suite of services and larger companies to pay for only the services they need.
In the first phase of the rollout of NetSuite 10, the company next week will release NetSuite Small Business, which consolidates the former Oracle Small Business Suite and NetSuite Basic services. Customers of this service will be able to access an additional module beyond the base service. Specifically, NetSuites UPS Shipping module, which integrates United Parcel Service of America Inc. shipping and tracking services with NetSuite services, could be added on.
Previously, NetSuite Small Business customers who wanted this service had to upgrade to the main NetSuite service, which costs four times as much, said NetSuite officials, in San Mateo, Calif.
Version 10 of NetSuite Small Business will include modules for inventory management, accounting, sales force automation, basic e-mail marketing, order management and basic Web site/online store customization tools.
The release of NetSuite Small Business heralds a change in the delivery model for the other NetSuite services. NetSuite 10s suite of midmarket application services, due this quarter, will similarly offer base services, then additional modules, what the company calls "value modules." Previously, customers had to license these modules in a separate level of service called NetSuite Pro, but could not rent them a la carte.
The company is making this move to better compete in the upper end of the midmarket, where such an approach is standard according to NetSuite President and CEO Zach Nelson.
"While NetSuite 10.0 will have hundreds of enhancements that will be bundled for all users, specialized functionality that impacts only a subsegment of our users will be broken out," said Nelson. "For example, a services company doesnt feel they should have to pay for—or deal with the complexity of—advanced inventory features. Likewise, a company using ERP [enterprise resource planning] only doesnt feel it should have to pay for a CRM [customer relationship management] offline client."
The Advanced Inventory module includes support for lots, serialization, units of measure, pick-pack-ship, matrix items and bar coding.