Sunday, October 24, 2010

NetSuite OneWorld PH Launched

NetSuite CEO Zach Nelson recently launched a localized version of OneWorld, it’s cloud-based CRM/ERP/E-Commerce suite for global businesses with multinational and multi-subsidiary operations.

Already boasting mid-to-large scale business customers like AnTech Inc, Jollibee, ABS-CBN Global, and SQL*Wizard, this month’s announcement emphasizes the growing demand for cloud solutions in the country. This makes a lot of sense for NetSuite which doubled it local operations last year and already offers its standard cloud-based business suite in the country.

Note, however, that unless you are a multinational firm with Philippine operations already using NetSuite, or a Philippine firm with a foreign subsidiary, this announcement is likely not for you. This explains why NetSuite is focusing the message in BPO and exporter-rich cities like Metro Manila and Cebu.

One thing that’s unclear is local pricing, but if in line with global rates, it will cost $399/month and $99/month per user before add-ons. Support will then cost an additional 22.5% to 37.5% of the license cost. At PHP20,000+ per month, NetSuite won’t be a viable solution for small businesses, franchisees, or start-ups. There is no question that this offering is valuable as it helps increase productivity and is priced competitively versus on-premise ERP solutions, however current pricing does not help get cloud business solutions in the hands of small businesses.

In a marketing mailer, NetSuite positions the new product with the following advantages:

  • Grow faster. NetSuite gives you sales automation, marketing automation, and complete CRM – so you can sell more effectively and better satisfy customers.
  • Save money. NetSuite provides the power of enterprise applications at a fraction of the cost. With a modest monthly fee and one application for all your key business processes, you save time and money.
  • Make faster, better decisions. With role-based dashboards and all business data in one place, your employees have the real-time information they need to be more effective.
  • Automate business processes. Streamline and systematize operations across your business.
  • Eliminate IT costs and hassles. NetSuite is delivered as an on-demand service, so there is no hardware or software to manage and maintain.

The product supports the following features localized for the Philippines:

  • BIR Revenue regulation No 09-2009 (Mandatory use of computerized accounting system for large taxpayers)
  • VAT
    • 7 VAT codes required (Government, Export, etc.)
    • VAT declaration report
  • Withholding Tax (Mandatory for top 20K businesses)
    • 79 tax codes
    • Based on income payment type (eg. C/Card vs Terms based)
    • Contractor relationship
    • Certificate of creditable tax withheld