By acquiring Venda, NetSuite increases its European presence, grows the e-commerce talent supporting SuiteCommerce and now offers Venda’s cloud platform, a stand-alone digital commerce solution.
On 17 July 2014, NetSuite announced the acquisition of Venda, an e-commerce vendor, for an undisclosed amount.
The acquisition of Venda has bolstered NetSuite’s presence in Europe. Although NetSuite could deliver internationally prior to the acquisition, it only earned around 26% of its revenue outside the United States in 2013. In contrast, Gartner estimates that Venda earned approximately 50% of its revenue in Europe that year.
Building on NetSuite’s European operation, this acquisition adds around 300 Venda employees, including senior executives, to the NetSuite team. These individuals will boost NetSuite’s e-commerce and European expertise, including its ability to execute in the region. An unspecified number of prior Venda staff will lend their expertise to the further development of NetSuite SuiteCommerce.
By acquiring Venda, NetSuite will also expand its product line to include Venda’s cloud platform. As Venda staff move to working on NetSuite’s offerings, the frequency of Venda release cycles and related functions may diminish.
Because it is a stand-alone e-commerce package, Venda’s cloud platform will enable NetSuite to appeal to a new market that wants customer-facing solutions that are not tied to a particular back-office application. By providing a stand-alone offering, NetSuite may change its image to that of a provider of solutions that are back-office agnostic.
While NetSuite will now offer two distinct e-commerce solutions, the company states that it plans to grow and support the Venda platform indefinitely.
At this time, NetSuite has no clear integration plans between Venda’s platform and NetSuite’s offerings. Gartner believes that current Venda and NetSuite clients should not assume that integration between the Venda and NetSuite offerings will occur unless NetSuite states otherwise. Venda customers looking to use NetSuite order management and point of sale (POS) capabilities will have to use published Web services application programming interfaces.
Venda customers and prospects:
Stick to existing Venda contracts, but talk to NetSuite about its product development plans, including the future road map of Venda’s cloud platform.
Analyze Venda contracts offered by NetSuite to ascertain any changes to pricing and business terms.
Get commitments from NetSuite for upcoming release schedules — both for functions and release dates. Do not, however, expect native integration to NetSuite POS or NetSuite OMX (formerly OrderMotion).
NetSuite customers looking for an e-commerce platform:
Expect no immediate change but watch for new functions, especially in Europe, as NetSuite employs its new skill set in that region.
Watch for new functions across e-commerce solutions as NetSuite uses Venda resources to augment product development, but don’t expect any immediate changes.
Consider working with NetSuite if you have offices in Europe or plan to expand to that region, as NetSuite’s ability to execute in Europe just got better.