By Bernie Cahiles-Magkilat
San Francisco – NetSuite Philippines, the business process outsourcing unit of NetSuite, is expected to grow at a faster speed as Oracle Corp. has started pouring massive investments for the overall NetSuite’s global expansion to take advantage of the need of small and medium enterprises for cloud-based solutions.
Evan Goldberg, founder and former chairman and chief technology officer of NetSuite and now Oracle’s executive vice president, told the Philippine press participants to SuiteConnect Oracle + NetSuite that Oracle, which acquired NetSuite for $9.3 billion last year, has been taking “very, very serious” on its ambition in NetSuite.
“The intention is to grow NetSuite faster than when we were growing as a listed company,” said Goldberg, who first worked at Oracle before he founded NetSuite. In fact, he said, the budget for NetSuite, which had been operating for 18 years prior to Oracle acquisition, has been increased substantially to support the growth strategy.
“Everything at Oracle NetSuite is expanding and there will be no exception as Mark Hurd said they are investing very heavily in distribution and R & D and the Philippines plays a big role so there will be expansion there and obviously for customer support role have to massively increase that because that is the intention to invest in all countries that we serve and I think there will be opportunities and we are very proud of our operation in the Philippines,” added Goldberg.
NetSuite operates a knowledge process outsourcing hub and as technical support for its global operation in the Philippines where it has approximately 1,300 employees.
On NetSuite’s previous plan to establish a data center in Asia and that the Philippines was a possible site, Goldberg said that although that is not a priority they have not also foreclosed that possibility. They is still looking at putting up a database in Asia the only question is where and when.
Earlier on Wednesday, Oracle CEO Mark Hurd addressed the original NetSuite customers that Oracle did not only acquire NetSuite for $9.3 billion but is investing in the company to increase presence, in distribution, and in the number of products they bring using the broad range of Oracle capabilities as they put more efforts to localize in more countries.
Hurd cited the acquisition of NetSuite as “very exciting if not the most exciting Oracle has ever done.” Hurd cited the complementarities between the two companies, with NetSuite providing ERP solutions for SMEs while Oracle, a database company originally, concentrates in the big multinationals and more complex cloud solutions.
When asked if there are tasks currently performed in NetSuite Philippines that can be easily replaced by AI (artificial intelligence) or automation as Oracle is now leading in cloud automation platform, Goldberg said that AI will not result in the displacement of workers in the Philippines since there are no tasks performed at its Manila office that can be replaced by AI.
He, however, said that AI will change the nature of some jobs, caused some displacements in other companies and industries but not for NetSuite. Ifever there will be some changes that will not be in the short-term horizon, which he said, could be three in years.
Lee Thompson, group vice-president and general manager of Japan-Asia Pacific for Oracle NetSuite Global Business Unit, said that Oracle has big plans for NetSuite with the creation of hubs and spokes model.
So far, it has already established 5 sales hubs in Japan, Australia, Singapore, Tokyo, Shanghai and Bangalore and satellite sales offices or spokes across Asia. They are also recruiting a lot of people to support the growth strategy.
Before the acquisition by Oracle, Thompson said, NetSuite was already growing at 30 percent but the intention now is to grow faster than that.
“Oracle has very deep pockets and making investments in NetSuite,” he said noting that the acquisition has brought NetSuite a lot of recognition in geographies where it does not have presence. Oracle also wants to maintain the identity of NetSuite.