CRM and ERP vendor NetSuite (News - Alert) and CyberSource, a vendor of electronic payment and risk management products, announced that CyberSource has become NetSuite's global payment strategic partner.

 

NetSuite officials say they have "integrated support for CyberSource's (News - Alert) global payment acceptance services, risk management solutions, and payment security services," which they say gives NetSuite customers "a strong set of payment tools."

 

CyberSource eCommerce payment management services available to NetSuite's customers worldwide include support for credit cards, debit cards and electronic checks, fraud prevention services and token-based, secure storage service, which NetSuite officials say "helps keep sensitive payment data out of merchants' daily business operations."

 

"NetSuite has long been a significant presence in on-demand ERP, CRM and eCommerce applications," said Carolyn Brackett, vice president, channels and alliances at CyberSource. "As their customers seek to grow their businesses, CyberSource will provide payment solutions to help NetSuite customers capture and keep more of that revenue."

 

Just over a month ago NetSuite filed a Form S-1 with the Securities and Exchange Commission in connection with its plan for an initial public offering of common stock, according to investment industry journal RTT.

 

Larry Ellison, the co-founder and CEO of Oracle (News - Alert), is a director of the company and owns a 74 percent stake. Evan Goldberg, also a former Oracle employee, started the company in 1998 with the help of Ellison. Goldberg is the presently the company's chairman and chief technology officer and owns an 8.1 percent stake in the company.

The company's CEO, Zach Nelson, also a former employee of Oracle, owns a 3.6 percent stake in the company. The company began as the small arm business of Oracle Corp. and licensed the Oracle brand as well as introduced its Oracle Small Business Suite around 2000. In 2004, NetSuite stopped the development and marketing of Oracle Small Business Suite and changed its name to NetSuite.

The company has not been profitable on a quarterly or annual basis since its formation and added that it may incur significant losses in the future for several reasons, RTT reported. The company has an accumulated deficit of $193 million since its formation.

NetSuite was formed about four months before San Francisco, California-based Salesforce.com (News - Alert). Salesforce.com's annual revenue rose to about $500 million from $96 million since its IPO in 2004. The company's shares have quadrupled since its IPO to a total market capitalization of almost $5 billion.

 

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