© Copyright NetSuite Inc., All Rights Reserved. How the On-Demand Suite Has Changed the Game in Business Management Software SaaS REVOLUTION THE

© Copyright NetSuite Inc., All Rights Reserved. Adam Smith Corporate Sales NetSuite, Inc. DDI: Mobile:

© Copyright NetSuite Inc., All Rights Reserved. Agenda Netsuite Background View of the Market for Mid-size Business Software: The Vendor perspective The Customer perspective How can Mid-size companies get what they need The two important shifts in Business Software The Netsuite Solution Questions

© Copyright NetSuite Inc., All Rights Reserved. About NetSuite Co-Founded by Larry Ellison and Evan Goldberg in 1998 Largest integrated on-demand customer base Awesome product: every major award Accounting/CRM/E-commerce/Business Intelligence+

© Copyright NetSuite Inc., All Rights Reserved. View of the Market for Midsize Business Software From a vendor and client Perspective.

© Copyright NetSuite Inc., All Rights Reserved. Two Distinct Views Vendor ViewCustomer View

© Copyright NetSuite Inc., All Rights Reserved. The Vendor View

© Copyright NetSuite Inc., All Rights Reserved. Note: Represents North American Enterprise Application Software Revenue Source: Gartner, July 2006 Medium Enterprise Employees Small Enterprise 1-9 Employees Highly fragmented, no clear leader Faster growing than enterprise market Need ease of use and power at low cost Few examples of software application successfully moving down market 3,821,128 Companies 1,253,979 Companies 8,643 Companies Large Enterprise Employees 10.8% CAGR % CAGR The Business Software Market

© Copyright NetSuite Inc., All Rights Reserved. SMB the Place to Be!!?? Welcome to Easy Street IT SAYS, YOU GO FIRST, DAVE...

© Copyright NetSuite Inc., All Rights Reserved. The Customer View

© Copyright NetSuite Inc., All Rights Reserved. Accounting SFA Support Web Warehousing The #1 Technology Challenge: Information Silos Remedy Excel

© Copyright NetSuite Inc., All Rights Reserved. N = 722 Source: Yankee Group, Nov 2006, US SMB Applications and Web Survey What is the primary technology challenge facing your business? Top IT Application Challenges: Info Silos, Insufficient Staff, and Outdated Apps Hard to get work done as unshared business information sits separately in different applications and departments Insufficient IT staff to manage my technology needs My business is outgrowing outdated business applications Outdated IT infrastructure doesn’t support my changing business application needs Need to integrate my company Website with other business applications No time or expertise to assess new technologies Want a company website but don’t know how to build and manage one Difficulty in managing marketing to customers via campaigns Want a company online store to sell products/services online Need to integrate my company Website with my point of sale system Difficulty in buying and managing online advertising

© Copyright NetSuite Inc., All Rights Reserved. Quote Pick & Pack Invoice Sales Order Customer Service SFA Order Mgmt Finance Warehouse Support Manual Processes and Silo’s of Information Pervasive

© Copyright NetSuite Inc., All Rights Reserved. Most Businesses Can’t Answer Critical Business Questions Who are my most profitable customers, and what have they purchased? What are the current opportunities that our sales team and partner network are working on, and when are they expected to close? Which marketing campaigns generated revenue and why? Are we allocating the right resources to the right opportunities? Do we have the information needed to complete the order efficiently and accurately? What are the past and current service requests from this customer, and do they have an outstanding payment?

© Copyright NetSuite Inc., All Rights Reserved. Sales & Service Reps Are Often Blind With Traditional Standalone CRM Systems Is the product in stock? Where is the customer’s order? What is the status of the customer’s project? Are there any current red flags with this customer? What is the complete purchase history of the customer? What are purchase trends of the customer? What are problems or opportunities? What else should we sell the customer? How can we easily upsell and cross-sell?

© Copyright NetSuite Inc., All Rights Reserved. SMBs must eliminate information silos to improve the customer experience. — Yankee Group, Sheryl Kingstone, August 2007 The Business Challenge ’’ ‘‘

© Copyright NetSuite Inc., All Rights Reserved. N = 722 Source: Yankee Group, Nov 2006, US SMB Applications and Web Survey What is the primary inhibitor of your company’s ability to adopt new technology solutions? Price Is Still the Main Obstacle to Solving IT Problems Affordability: price of technology solution is too expensive Daunted by the perceived complexity of the solutions Must overhaul my company’s entire IT infrastructure to cater to new technology Fear of downtime and disruption to my business Fear that it will not integrate easily into my current network Lack upper management buy-in and support Unclear how new technologies benefit my business and address my pain points No financing/leasing to buy IT infrastructure and business application solutions

© Copyright NetSuite Inc., All Rights Reserved. The Key Problems for Midsize Companies Outgrowing Current Applications Information Silos Pervasive Manual Processes & Spreadsheets Pervasive View Enterprise-class Systems As Too Costly & Too Complex

© Copyright NetSuite Inc., All Rights Reserved. Midsize Company Application Needs Market Need Integration & Single View of the Customer Easy to Use and Implement Rich Functionality Easy to Customize Low Cost

© Copyright NetSuite Inc., All Rights Reserved. How Can Midsize Companies Finally Get What They Need?

© Copyright NetSuite Inc., All Rights Reserved. The two most important shifts in business software the last 20 years: 2 2 The Integrated Business Suite 1 1 On Demand Software

© Copyright NetSuite Inc., All Rights Reserved. SaaS Growth Is Explosive 32.2% CAGR ($ in billions) Source: IDC, July 2007 Worldwide SaaS Revenue

© Copyright NetSuite Inc., All Rights Reserved. Why On Demand Is In-Demand Dramatically lower cost of doing business

© Copyright NetSuite Inc., All Rights Reserved. On-Demand: Manage Your Business, Not Your Software Manage it Yourself Style HARDWARE License Maintain Patch Replace DESKTOP OS License Maintain Patch Replace SERVER OS License Maintain Patch Replace DATABASE License Maintain Tune Upgrade APPLICATION License Back-up Upgrade Migrate On-Demand HARDWAREDESKTOP OSSERVER OSDATABASEAPPLICATION Subscribe HARDWARE License Maintain Patch Replace DESKTOP OS License Maintain Patch Replace SERVER OS License Maintain Patch Replace DATABASE License Maintain Tune Upgrade APPLICATION License Back-up Upgrade Migrate HARDWARE License Maintain Patch Replace DESKTOP OS License Maintain Patch Replace SERVER OS License Maintain Patch Replace DATABASE License Maintain Tune Upgrade APPLICATION License Back-up Upgrade Migrate

© Copyright NetSuite Inc., All Rights Reserved. Why On Demand Is In-Demand Dramatically lower cost of doing business Predictable cost – well-defined TCO Faster development cycles and innovation Ends IT hassles & costs Instant, anytime, anywhere access

© Copyright NetSuite Inc., All Rights Reserved. “Just CRM”

© Copyright NetSuite Inc., All Rights Reserved. N = 722 Source: Yankee Group, Nov 2006, US SMB Applications and Web Survey High Interest in Many Different Types of SaaS Applications Is your company evaluating/interested in adopting any of the following business applications as a hosted software-as-a-service?

© Copyright NetSuite Inc., All Rights Reserved. “Web-based Software Is Not as Customizable as On-Premise Software”

© Copyright NetSuite Inc., All Rights Reserved. On-Demand Customization Traditional Software Customization  Clicks before code  Industry standard javascript  Industry standard web services  Carries forward with upgrades  Customization encouraged  Straight to code  Proprietary programming language  Hard core integration  Breaks with upgrades  Customization discouraged

© Copyright NetSuite Inc., All Rights Reserved. “ Web-based User Interfaces Aren’t as Productive”

© Copyright NetSuite Inc., All Rights Reserved.

The On Demand Suite Meets Mid-Market Needs Market Need The On-Demand Suite (e.g. NetSuite) Integration & Single View of the Customer Easy to Use and Implement Rich Functionality Easy to Customize Low Cost Click Not Code, and Scripting Allows Business Process Customization Breakthrough AJAX UI throughout Product Unsurpassed Powerful, and Now Vertical Suites

© Copyright NetSuite Inc., All Rights Reserved. The On Demand Suite Meets Mid-Market Needs Market Need The On-Demand Suite (e.g. NetSuite) Integration & Single View of the Customer Easy to Use and Implement Rich Functionality Easy to Customize Low CostHalf the Cost Click Not Code, and Scripting Allows Business Process Customization Breakthrough AJAX UI throughout Product Unsurpassed Powerful, and Now Vertical Suites

© Copyright NetSuite Inc., All Rights Reserved. Recommendations for Midsize Enterprises Get rid of “managing by spreadsheet” Develop a realistic strategy for achieving seamless integration and a unified view of the business Evaluate vendors of integrated SaaS suites (plus other vendors of SaaS and on-premise suites) Automate processes Understand process and integration requirements *before* implementing the software Pick a solution that can grow with you and allow you to customize business processes

© Copyright NetSuite Inc., All Rights Reserved. The two most important shifts in business software the last 20 years: 2 2 The Integrated Business Suite 1 1 On Demand Software

© Copyright NetSuite Inc., All Rights Reserved. Web Support ERP Sales Enterprise Management: 1998

© Copyright NetSuite Inc., All Rights Reserved. The First Integration of “Best of Breed” Components

© Copyright NetSuite Inc., All Rights Reserved. API’s CORBA ORB Three Magic Words of 1998

© Copyright NetSuite Inc., All Rights Reserved. Web Support ERP Sales The Suite Is Now the Standard in Fortune 1000

© Copyright NetSuite Inc., All Rights Reserved. Integration of Point Solutions Suite The Suite Wins

© Copyright NetSuite Inc., All Rights Reserved. Integration of Point Solutions Suite The Suite Wins No Central BrainIntelligent Central Brain

© Copyright NetSuite Inc., All Rights Reserved. Web Services SOA Mash-ups Three Magic Words of 2007

© Copyright NetSuite Inc., All Rights Reserved. Remedy Excel Midsize Enterprise YEAH Sure…this will work

© Copyright NetSuite Inc., All Rights Reserved. Need an Integrated Suite? Accounting SFA Support Web Warehousing Remedy Excel

© Copyright NetSuite Inc., All Rights Reserved. Remedy Excel Marketing Campaigns Sales Force Automation Support Mgmt Partner Mgmt Order Mgmt Financials Inventory Payroll Purchasing Shipping Vendor Portal Customer Portal Web Site Web Store The Integrated, On Demand Suite One Core System to Run Your Business

© Copyright NetSuite Inc., All Rights Reserved. Marketing Campaigns Sales Force Automation Support Mgmt Partner Mgmt Order Mgmt Financials Inventory Payroll Purchasing Shipping Vendor Portal Customer Portal Web Site Web Store What a Good Idea Ecommerce Manager Support Manager CEO Sales Rep/ Manager Shipping Manager CFO

© Copyright NetSuite Inc., All Rights Reserved. The Connected Company Empowered by the 360-Degree View Browse Site, Request Info Sales Rep Contact Get Quote, Place Order Meet in Person Track Shipment Receive Notification of Fulfilled Order Service Inquiry Repurchase Receive Marketing Promotion Customer

© Copyright NetSuite Inc., All Rights Reserved. Adam Smith Corporate Sales NetSuite, Inc. DDI: Mobile:

© Copyright NetSuite Inc., All Rights Reserved. One System. No Limits.