It takes a company with a solid strategy to sustain growth during an economic downturn like the one currently being experienced. With third quarter 2008 results flooding the newswires this week, companies are getting a chance to show whether their strategies have been successful or not.
NetSuite’s success was recognized Wednesday when the company was officially named to Deloitte’s (News
) Technology Fast 50 list for Silicon Valley Software and Information Technology companies. Its ranking was based on percentage of revenue growth during the period of 2003 through 2007.
Qualifications for being included on Deloitte’s list include having operating revenues of at least $50,000 for fiscal 2003 and at least $5 million for 2007. Companies must also own proprietary technology or intellectual property that contributes significantly to operating revenues, or else devote a significant portion of revenues to technology R&D.
To be included on the Silicon Valley list, companies must also have headquarters in the San Francisco Bay Area of California.
NetSuite, which is based in San Mateo, California, qualified on all counts. The company specializes in integrated business software, and offers four proprietary product lines: NetSuite
(Web-based CRM and ERP application), NetSuite OneWorld
(on-demand system for global business management), NetSuite CRM+
(customer relationship management system), and NS-BOS
(a Software-as-a-Service development platform).
Even more importantly, NetSuite has achieved significant success financially. The company’s revenues increased 1,201 percent between 2003 and 2007, landing it in spot #22 on Deloitte’s list. The average revenue increase for companies that made the list was 3,039 percent.
Mark Jensen, managing partner at Deloitte’s national venture capital services division in Silicon Valley, said companies like NetSuite have shown strength, vision and tenacity — all keys to success in a competitive marketplace.
“We applaud the successes of NetSuite and acknowledge it as one of the very few to accomplish such a fast growth rate over the past five years,” Jensen said.
Zack Nelson, NetSuite’s CEO, said the company’s fast growth demonstrates the enthusiasm of its customers for integrated applications and on-demand delivery.
“Customers are finding that NetSuite helps them maximize profits, lower costs and drive new revenue streams — all of which are key in this challenging economy,” Nelson said. “The Software as a Service (SaaS (News
)) revolution is all about helping businesses do more with less, and NetSuite is proud to lead the charge.”
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Mae Kowalke is senior editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Mae's articles, please visit her columnist page. She also blogs for TMCnet here.
Edited by Mae Kowalke