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NetSuite gets out of data center business

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By Bernie Cahiles-Magkilat

Las Vegas  –  The acquisition of NetSuite by Oracle has changed the strategy in its approach to building data centers with NetSuite now moving into the Oracle infrastructure instead of continue building its own.

Oracle NetSuite officials explained this change at the SuiteWorld 2018, the annual gathering of NetSuite stakeholders, clients and media in Las Vegas, as the company launched new features to further enhance the capabilities of NetSuite business software solutions.

“The strategy has changed,” said Oracle NetSuite Executive Vice President Jim McGeever during a press conference with journalists from the Philippines, India and other southeast Asian countries.

Oracle acquired NetSuite more than a year ago for  $9.3 billion and invested 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.

There was a plan then of building a data center in southeast Asia wherein the Philippines was among the countries being considered for location. 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.

“Our plan was to do that and open but we have Oracle Cloud Infrastructure (OCI) around the world and we are moving our data centers into the Oracle Cloud,” said McGeever. This will facilitate though the building of smaller data centers around the world that will further boost performance of NetSuite.

Even Goldberg, NetSuite founder and now Oracle-NetSuite EVP, also confirmed that NetSuite getting out of data center business. But the company is growing its investment and in 2018 it is investing $1 billion for R & D to support growth.

For instance, NetSuite has announced at the SuiteWorld its SuiteCommerce, a brand-new capability; SuiteTax; SuiteCloud Development Framework Oracle Cloud Infrastructure; SuitePeople, among others.

All these are aimed at helping over 40,000 NetSuite customers, mostly small and medium enterprises globally, become more efficient and profitable.

In February this year, Oracle announced plans to significantly expand its modern cloud infrastructure footprint that due to strong customer demand for its cloud services worldwide.

The company’s rapid expansion plans include the opening of 12 new datacenter regions and increasing the breadth and depth of Oracle Cloud services available across Asia, Europe, and the Americas. With this news, Oracle continues its industry leadership position, delivering a complete and integrated portfolio of cloud services (SaaS, PaaS, and IaaS) and new services in security, Blockchain, and Artificial Intelligence.

“The future of IT is autonomous. With our expanded, modern data centers, Oracle is uniquely suited to deliver the most autonomous technologies in the world,” said Oracle CEO Mark Hurd in a statement.

“As we invest, our margins will continue to expand. And with our global datacenter expansion, we are able to help customers lower IT costs, mitigate risks and compete like they never have before.”

The regional expansion of Oracle’s cloud footprint will include locations in Asia including China, India, Japan, Saudi Arabia, Singapore, and South Korea; Europe including Amsterdam and Switzerland; and North America including two in Canada and two new US locations to support US Department of Defense workloads.

Since launching Oracle Cloud, the company has seen an ever-growing set of customers, across the Global 2000, as well as small and medium businesses. Organizations continue to turn to Oracle at record-rates to build, deploy, and extend game-changing applications and run business-critical workloads in a low-latency, highly available, reliable and secure cloud environment.

OCI combines the elasticity and utility of public cloud with the granular control, security, and predictability of on-premises infrastructure to deliver high-performance, high availability and cost-effective infrastructure services.

Today, customers in more than 195 countries are running their most demanding applications on Oracle Cloud Platform and OCI.

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