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July 16, 2009

Green for Green by Being Green: NetSuite Releases SaaS Impact Study

By David Sims, TMCnet Contributing Editor

Green of one kind begets green of another kind: NetSuite has announced the results of a recent independent sustainability impact study of the company’s software as a service platform, finding "significant business energy-saving benefits" for NetSuite (News - Alert) customers using its enterprise resource planning (ERP), customer relationship management (CRM) and e-commerce software.

These eco-friendly green benefits translate into bank-friendly green returns for NetSuite users, according to the impact study by Greenspace: "By vastly reducing the need for servers and support equipment, such as server room air conditioning, Greenspace found the average NetSuite customer can cut its electricity bill by more than $10,000 per year," NetSuite officials say, "calculating" that when added to the overall costs of hardware, software licenses, maintenance, personnel and occupancy, "the cost reductions can exceed $100,000 per year, per customer."

To arrive at these results, Greenspace officials say they reviewed NetSuite’s platform using its EcoMetrics scorecard review, which measures cost savings, efficiency and environmental benefits.

“Being a green company, one of the main reasons we selected NetSuite was because we didn’t need to buy additional hardware or servers,” says Angelica Biehl, director of IT for CMC Energy Services.

The NetSuite data center incorporates HP’s servers listed in the ENERGY STAR (News - Alert) program, a voluntary energy efficiency program sponsored by the U.S. Environmental Protection Agency.

The Greenspace EcoMetrics study found "tremendous incremental benefits" to the NetSuite approach. It not only identified significant energy savings opportunities, but revealed green benefits including e-waste reduction, paper use reduction and increased employee productivity.

NetSuite’s billing their SaaS (News - Alert) model as an "energy-saving green alternative to traditional on-premise ERP and CRM," contributing to "less overall energy use, fewer emissions and smarter thinking about how companies manage technology." The company is also offering alternative energy industry association members "substantial on-demand business suite discounts," company officials say.

Greenspace sells office, janitorial, energy and maintenance supplies and products.

Last month TMC's Customer Interaction Solutions magazine named NetSuite CRM a recipient of a 2009 CRM Excellence Award.

NetSuite officials say the award recognizes "NetSuite's growing impact on companies looking for powerful, integrated Software as a Service business management." The CRM Excellence Awards, now in their tenth year, are based on each rated product's ability to extend and expand the customer relationship across the entire enterprise, and provide end-to-end customer life cycle management.

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Patrick Barnard

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