The Six Five team discusses Oracle NetSuite SuiteWorld 2023.
If you are interested in watching the full episode you can check it out here.
Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this webcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we ask that you do not treat us as such.
Daniel Newman: Talk a little bit about what went on this week at NetSuite world, Pat.
Patrick Moorhead: Yeah, it was great to get with Evan the day before the show announced, and I would’ve liked to have been there, but my dance card was filled twice. So a little bit of background, if you don’t know about NetSuite, they are the leading medium company provider for enterprise business suite, right? They do what SAP does. They do what Salesforce does, but they do it in a single suite. Hey Matt, buddy, how you doing? How are you?
Matt Newman: Good.
Patrick Moorhead: Good. I love that headband.
Matt Newman: I’m going to run at least a 37 laps at school today.
Daniel Newman: All right, go get them buddy. Thanks for saying bye to me. I’ll see you. I’ll wave from the race.
Patrick Moorhead: Oh, that’s so cute. That was Dan’s son.
Daniel Newman: Hey everybody, thanks for letting Matthew come join our pod for just a minute, everybody. I’ll be there with AWS and Ferrari.
Patrick Moorhead: So good.
Daniel Newman: Thanks buddy.
Patrick Moorhead: Yeah, NetSuite does a business suite and in fact, more unicorns use NetSuite than any other package out there. But anyways, what did they announce at SuiteWorld? Imagine this. I mean, I’d have to think for hours to think of what they could possibly announce for SuiteWorld after the last nine months. No, just kidding. Essentially they announced generative AI across the entire suite, okay? Whether it’s ERP, whether it’s SEM, whether it’s CX, it’s across everything. And one of the examples that is just simple, and one of the benefits of having a suite like this is NetSuite text enhance. Think of text enhance as maybe you’ve used the generative AI tools inside of Gmail where it says, “Hey, what do you want to write?” And then you just type what you want to write, who you want to write it for, and it cranks it out. Well, this entire feature is across finance, accounting, HR, supply chain, sales, marketing, customer support functions.
And one of the things that I think people sometimes miss is the value, for instance, this one feature text enhancer works the same across your entire platform. You don’t have to have separate training for everybody. It’s like one training for pretty much everybody. And you figure out how to learn that. And in smaller companies, you have a lot of people who are doing not cross-training, but cross-working, your AP people do some ar, your AR people do some AP, your revenue generators do some marketing. So I think there’s an incredible amount of value in this. Other examples they talked about is creating special narratives for collection letters. Dan, you and I can relate to that. I mean, we have these giant Fortune 100 tech companies who love to not pay us and leverage, oh, you’re still muted.
Daniel Newman: They pay really slowly, really slowly. The Bank of Pat, as I like to call it, the Bank of Daniel.
Patrick Moorhead: They’re financing their trillion dollar companies on the backs of companies like ours. And with this you can write a personalized collection letter and think about the power of that. If you have the authorization that you get access to accounts payable or potentially a CX engagement, it will write this thing for you. And this is one of the simplest examples of how generative AI can bring value to a company. And Dan, I could go on and on and on. There were another major announcement maybe on EPM that you can cover. But yeah, NetSuite, generative AI across the suite, one data plane, no changes to security, no data integration, nothing.
Daniel Newman: Yeah, you did cover a lot of ground. And Pat sometimes the best indicator is understanding whether or not a solution can really work for business and our business is using and adopting it. And NetSuite’s growth rate speaks a lot for the market. And it also is probably the undisputed number one application for what I would kind of call your fast growth companies. Fast growth companies that are going public, PE owned, kind of that large inner interim growth stage to becoming a large fortune type company where Fusion ends up being the platform. Oracle is sort of renowned for its ability to close its own books in 11 days. Think about that. Companies doing tens of billions of dollars. I know companies that do $10,000 in sales a quarter and can’t close their books in 11 days. It’s pretty remarkable. But you hit it on the head Pat, AI was the theme.
And yes, there was an interesting enterprise performance management, which is really all about bringing together a number of the company’s capabilities, sorry, a number of the business capabilities, budgeting, forecasting, planning account reconciliation, putting all those things together and creating better management, better visibility, better dashboards. But laying in AI both from a underpinnings of the way the software interacts with its users and then out front being able to do text creation for what you mentioned in collections or sales notes through CRM. That kind of inclusion of AI is what the customers are looking for. Look, you and I’ll talk about a chip lab tour, we’re going to talk about AI chips going to China in a little bit here, but most enterprises, businesses large and small, when you think about AI, what they’re really looking for is how AI, how is AI embedded in my user experience when I’m in the application and I want to understand my 10 best sales opportunities, can AI help me understand it?
Can it help me write a good follow-up email? Can it predict the likelihood that that deal is going to close? Can it tell me the ones that I should not bother with? Can it tell me which customer might pay faster and which one probably won’t? I mean these are the kinds of things that businesses are looking for and I think NetSuite’s doing a really good job across the stack. It’s a competitive market through parts of the NetSuite portfolio like the CRM side’s always been a little tougher. It’s got a very strong foothold in the ERP side. Having said that, with the CX features it’s building, it’s becoming more and more compelling as we go.