Key learning points from NetSuite Q4 2012 Results – Earnings Call
Few key points with respect to the Software as a Service dynamics extracted from the transcript of NetSuite Q4 2012 Results – Earnings Call
- The higher end of the market seems ready for more complex, scalable, global OnDemand software solutions.
- The software industry is leading the adoption of SaaS solutions and eCommerce to follow
- Suite of products offering increase ASP(Average Selling Price) – increasing willingness to pay because a more complete solution reduces cost and increase productivity
- Suite of products offering enables going up the market, replacing disparate system (in one case as much as 14)
- Should SAP be worried?! Probably others should too.
- Going up the market increases the length of the sale cycle (is that a concern?). This is interesting point. The price(paid monthly) should theoretically reduce the risk, however it is not the only factor in the buying decision(more people are involved in the buying process on the high-end of the market).
- Going up the market increases demand for professional service
- The quality and size of the NetSuite partners (MSP, VAR) is growing. This enable both going up the market and sales leverage.
- There is strong demand for sales rep also in a SaaS model, whether selling to the channel or directly to the customer.
There were more gems in this transcript.