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NETSUITE SEES FEWER T1 DEALS Featured

Ron Gill, NetSuiteFewer corporations are buying Tier One financial products for enterprise-wide use, NetSuite CFO Ron Gill said in a webcast this week. Speaking at Barclays Global Technology Conference, Gill opined that because of the complexity and expense the entire process of buying and rolling out such installations has declined. "We are seeing fewer deployments where somebody does a big bang with Oracle or SAP," Gill said. "We are seeing more focus on solving specific problems."

While Gill admitted that the view may be influenced by the fact that NetSuite is largely selling to division-level buyers who do not use those products, he held that trend is occurring. He also noted that the dramatic increase in the average selling price of NetSuite deals does not stem from price increases, but from increasing functionality that can serve larger clients. "As the product gets more sophisticated, we have bigger and bigger deals," Gill said. He believes the increase in selling price has "got a more left to run." Gill also indicated that the selling price will likely rise as the company's manufacturing applications become more robust. "Manufacturing vertical is a more nascent vertical," he said.

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