Transform Your Finance Operation to

Thrive in Uncertain Times

© Copyright NetSuite Inc., All Rights Reserved.
Your Host: Panelists:
Stuart Rauch James Jones
Director, Product Marketing Director, Financial
Planning & Analysis
NetSuite Inc. KANA Software

Rob Hull
CFO and Founder
Adaptive Planning

© Copyright NetSuite Inc., All Rights Reserved.

Agenda

Welcome and Introduction to NetSuite and SaaS

Adaptive Planning: Budgeting, Forecasting &

Reporting in Uncertain Times

Adaptive Planning Demo

KANA Software Success Story

NetSuite and Adaptive Planning Demo by KANA

Q&A

© Copyright NetSuite Inc., All Rights Reserved.

NetSuite Background

Founded 1998

Publicly traded on NYSE: “N”

Strategy:
Deliver integrated business applications
as online services

Results:
– Largest integrated, on-demand
customer base (6000+ customers)
– Offices in 8 countries (US, Canada,
UK, Japan, Hong Kong, Singapore,
Philippines, Australia)

© Copyright NetSuite Inc., All Rights Reserved.

The Largest Provider of
Fully-Integrated SaaS Suites

Annual Revenue
2008 Revenue: $152.5M
$160M $152.5 (40.5% increase YOY)
$140M

$120M $108.5

$100M
Q4 08 Revenue: $41.4M
$80M

$60M
$67.2
(30.5% increase YOY)
$36.4
$40M
$17.7
$20M $8.3
$3.1

$0M
$1.1

2001 2002 2003 2004 2005 2006 2007 2008

$123.6 Million in Cash

Over 1.3 Million Unique

Log-Ins
Q4 2008 Financial Results press release dated 2/10/09 contains GAAP to
non-GAAP reconciliation and is available on NetSuite website.
© Copyright NetSuite Inc., All Rights Reserved.

5
Three Big Ideas

Suite SaaS Verticals

NetSuite: The Enterprise-Class Application for the Mid-market

© Copyright NetSuite Inc., All Rights Reserved.

6
The Typical On-Premise Way

Web
PSA/PPM

SFA

Excel
Accounting
Support
© Copyright NetSuite Inc., All Rights Reserved.
 The NetSuite Way: One System
Customers

CEO CFO

Accounting/
Financials
Shipping Inventory
Project Sales Rep
Mgr Purchasing Payroll /Manager
SINGLE Sales Force
DATA Automation
Web Store REPOSITORY
Marketing
Campaigns
Web Site
E-commerce Order Support
Manager Management Manager
Customer
Portal
Partner
Relationships
Vendor
Portal Customer
Support
Vendors Partners

© Copyright NetSuite Inc., All Rights Reserved.

8
 Software-As-A-Service
HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION
On-Premise HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION
Style: License HARDWARELicense DESKTOP License
OS SERVERLicense
OS License APPLICATION
DATABASE
Manage It License License License License License
ERP

Ecommerce
Maintain
CRM Maintain
License Maintain
License Maintain
License Back-up
License License
Yourself Maintain Maintain Maintain Maintain Back-up
Patch Patch
Maintain Patch
Maintain Tune
Maintain Upgrade
Maintain Back-up
Patch Patch Patch Tune Upgrade
Replace Replace
Patch Replace
Patch Upgrade
Patch Migrate
Tune Upgrade
Replace Replace Replace Upgrade Migrate
Replace Replace Replace Upgrade Migrate

SaaS HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION

One System

Style
Subscribe

© Copyright NetSuite Inc., All Rights Reserved.

McKinsey Says 40% Better TCO
Total Cost of Ownership, $ thousand

Software on Premises Software as a Service

Implementation, deployment
Customization, integration 108 72
Basic Infrastructure testing, deployment 54 0
Application infrastructure testing, deployment 30 0

Ongoing operations
Training 101 34
Mainagement, customization of business process change 94 0
Data center facilities rental, operations, security, compliance, 750 0
monitoring of incident resolution

Software
User licenses, subscriptions, maintenance 480 1,500

Other
Unscheduled downtime 308 0
Unused licenses 92 0

Total Costs (including those not shown here) 2,298 1,640

Sample deployment of CRM software (200-seat license)
The McKinsey Quarterly, Delivering Software as a Service 6/2007
© Copyright NetSuite Inc., All Rights Reserved.
The Benefits of Real-Time Data

Customizable Dashboards
– All data comes from one place
– Real-time insight into the most
important metrics and data
Visibility into cash flow
– Review cash flow projections
– Make adjustments based on
expectations of sales, collections,
expenses
Managers can track performance
against metrics – in real time

© Copyright NetSuite Inc., All Rights Reserved.

LOCAL GLOBAL
Currency Consolidation
Quota Sales
GLOBAL
Forecast Revenue
Orders Dashboards
REGION

Taxation Currency
Management
Partners
Compliance
Language
COUNTRY

Control
Website
Many Websites
Project
Management

12 Languages, 170 Currencies © Copyright NetSuite Inc., All Rights Reserved.

Worldwide SaaS Market Growth
2007-2012
26.8%
28.00%

26.00%

24.00%

22.00%
18.5%
20.00%

18.00%
CAGR

16.00%

14.00%
11.9%
12.00%

10.00%
7.6%
8.00%

6.00%

4.00%

2.00%

0.00%

On-Premise SaaS On-Premise SaaS

ERP ERP CRM CRM
© Copyright NetSuite Inc., All Rights Reserved.
Source: IDC and Gartner
The Fortune 5,000,000
NetSuite has over 6,600 active customers in a wide variety of industries

© Copyright NetSuite Inc., All Rights Reserved.

14
 Budgeting, Forecasting &
Reporting in Uncertain
Times

Rob Hull
Founder & CFO
Adaptive Planning

15
 Adaptive Planning Overview

Background Category Leader

Founded By aa CFO
Founded By CFO in
in 2003
2003 ƒƒ The
The leading
leading SaaS
SaaS Vendor
Vendor
Alternative
Alternative to
to Both
Both Excel
Excel and
and ƒƒ Free
Free Software
Software &
& Training
Training
Complex
Complex Enterprise
Enterprise Software
Software ƒƒ First
First Online
Online Community
Community
First
First True
True SaaS
SaaS Offering
Offering ƒƒ Only
Only Open
Open Source
Source Offering
Offering

Industry Awards Growth

2009
Rapid Customer 750
Cool Vendor in
Performance
2009 Core
Vendor
Hot Company 2008 Adoption
Management Best Newcomer

425

188
Best for
Upgrading Best BI or KM
Best Business
2008 64
Software
Your Solution Solution Emerging
Spreadsheets Vendor 2006 2007 2008 2009E

~10,000 users > 85 Countries

16 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Planning is Essential in a Recession

The CFO’s Role in Navigating the Downturn

CFOs need to replace traditional budgeting and planning with a more aggressive crisis-
planning mode focused on cash. They should prepare scenarios based on different economic
assumptions and risks, such as the sudden unavailability of funding or bankruptcies of major
customers or suppliers. And they must develop contingency plans in case the scenarios
come to pass. Survival is not a certainty.
“The CFO’s Role in Navigating the Downturn,” The McKinsey Quarterly, December 2008

Current
Current Uncertainty
Uncertainty Impact
Impact on
on Planning
Planning
How would you characterize the current level of Will the uncertain economic environment cause
economic uncertainty facing your business? you to re-plan, re-forecast, and perform what-if
analyses more frequently in the next quarter?
Low 5%

Medium 33% Don’t Know 14%

High 39% No 15%

Very High 23% Yes 71%

Source: BPM Forum / Adaptive Planning poll of finance professionals, February 2009
17 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Current Solutions Miss the Mark

Optimized Enterprise
Low End Tools Optimized for
for Mid -Market
Mid-Market
Solutions

Spreadsheets Simple,
Simple, Affordable
Affordable ƒ Expensive
ƒ Manual and
and Fast
Fast ƒ Slow to
ƒ Error-Prone Implement
ƒ Can’t Scale Free
Free Test
Test Drive
Drive Programs
Programs ƒ Complex
ƒ Risky

18 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Innovative Solution

Budgeting
Budgeting &
& Forecasting
Forecasting
„ Collaborative Modeling
„ Spreadsheet-Like Interface
„ Organizational Roll-Up
„ P&L, Balance Sheet, Cash Flow
„ Unlimited Versions

Reporting
Reporting &
& Analysis
Analysis
„ Drag & Drop Report Builder
„ Actual, Budget, Forecast
„ Multi-Dimensional Reporting
„ “What-If?” Analyses
„ Customizable Dashboards

Collaboration
Collaboration &
& Community
Community

„ Discussion Groups, Online Docs,

Attachments, Project Mgmt.
„ Alignment, Agility, Accountability
„ Best Practices & Peer Connections

19 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 The Unfair Advantage of SaaS

Transforming the Industry

ƒ “The rise of the cloud is more than just another platform shift that gets geeks excited. It will
profoundly change the way people work and companies operate.” - The Economist

ƒ “… in the midst of a profound shift from client-server to cloud computing. The economics
are truly compelling, with cost advantages of 3-5X for business apps.” - Merrill Lynch

ƒ SaaS is now commonplace and having a very real impact on IT. Users should not wait
but should explore cloud and SaaS opportunities from new vendors. - Gartner

Adaptive Planning Benefits

Cost
Cost Deployment
Deployment Speed
Speed Transparency
Transparency

As Little As $600 / Year 12 Days on Average Pricing, Uptime, Training &

Eliminate IT Costs Easy to Self-Implement Support All Online

Ease
Ease Of
Of Use
Use Accountability
Accountability Innovation
Innovation

30 Min. Training for Users Renewal-Based Model 3 Product Releases per Year
4 Hours for Administrators 99.9% Uptime “Live & Breathe Innovation”

20 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Excellent Fit for Companies of All Sizes
Software
Software // Manufacturing
Manufacturing Healthcare
Healthcare Non-Profit
Non-Profit
Services
Services

Financial
Financial
Retail
Retail Other
Other Communications
Communications
Services
Services

21 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 NetSuite & Adaptive Planning

+
Future
Historical
Forecasting
Perspective
& Scenarios

=
Complete
Complete Business
Business Insight
Insight

„ What have we achieved historically?

„ What are we planning to achieve in the future?
„ How well are we executing against our plans?
„ What if …?

22 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Demonstration

„ Financial forecasting is crucial, and even more so when times are

tough
„ You need visibility and the ability to evaluate scenarios quickly
„ Adaptive Planning gives you the tools you need:
– Scenario analysis: What if sales are 20% lower? What if I cut 5% of staff?
– Comparative reporting: budget vs. forecast, scenario comparisons
– Rolling actuals, forecasts: 9 months actuals from Netsuite, 3 months forecast
– Complete, integrated financial statements: quickly assess future cash impact
– Driver-based analysis: build calculations based on key business drivers

„ Let’s look at this within the application…

23 Not For Distribution – Private and Confidential to Adaptive Planning and Client
 Case Study

James Jones
Director, Financial Planning & Analysis
KANA Software, Inc.

Service
Service Done
Done Right.
Right. Customers
Customers for
for Life™
Life™
NetSuite & Adaptive Planning Journey

ƒ Background

ƒ Selection Process

ƒ Implementation

ƒ Impact

25
KANA Software
Who we are
• Recognized leader and top-10
global provider of customer
service applications
• World HQ in Silicon Valley
• 229 employees

Whom we serve
• 250 customers; 800+ deployments
• Global 1000 co’s with millions of
customers, billions of interactions
• Companies with a relentless focus
on customer retention & loyalty

What we provide
• Today: eService & Knowledge
Management solutions
• Tomorrow: End-to-End Service
Experience Management solutions

Strategic Partner
 Why NetSuite and Adaptive Planning

Application Architecture Objectives

NetSuite ƒ Replace various legacy systems
Adaptive
Workday (i.e., SFA, ERP/Financials, CRM,
HRIS SFA/CRM ERP Planning
BPM Expense Reporting, PSA) with a
Marketing
Professional single, integrated system
Services

Employee DB ƒ Eliminate manual processing and

offline spreadsheets
Customer DB Product DB

ƒ Improve data quality

ƒ Implement SOX compliant

controls

ƒ Improve business processes

27
Selection Process
Challenges

“According to both PricewaterhouseCoopers and KPMG,

more than 90 per cent of corporate spreadsheets have
material errors in them.“

“Errors, to be dangerous, must have a great deal of truth

mingled with them. It is only from this alliance that they can
ever obtain an extensive circulation. “
28
Selection Process
Selection Committees

Jay Jones, KANA CAO

Michael Fields, KANA CEO

Mike Shannahan, KANA CFO

29
Selection Process

Value Drivers

ƒ Subscription pricing

ƒ Low total cost of ownership

ƒ Ease of configuration, use and

maintenance

ƒ Features and functionality versus

price and complexity

30
Implementation
Implementation Critical Success Factors

• Followed standard software development lifecycle procedures

Sept 2007 NetSuite • Used in-house configuration and project management expertise
USA • Worked with NetSuite Services for training and coaching

• Implemented NetSuite One World

NetSuite • Increased focus on interactive design, prototyping and testing
International • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model

NetSuite • Worked with Navigant Consulting and Demand Solutions Group
Subsidiary • Increased focus on change management

• Used Quick Start consulting services

Adaptive • Used in-house resources for design, configuration, and deployment
Planning • Worked to document while configuring and modifying

31
Implementation
Implementation Critical Success Factors

• Followed standard software development lifecycle procedures

Sept 2007 NetSuite • Used in-house configuration and project management expertise
USA • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld

Jan 2008 NetSuite • Increased focus on iterative design, prototyping and testing
International • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model

NetSuite • Worked with Navigant Consulting and Demand Solutions Group
Subsidiary • Increased focus on change management

• Used Quick Start consulting services

Adaptive • Used in-house resources for design, configuration, and deployment
Planning • Worked to document while configuring and modifying
Sept 2008

32
Implementation
Implementation Critical Success Factors

• Followed standard software development lifecycle procedures

Sept 2007 NetSuite • Used in-house configuration and project management expertise
USA • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld

Jan 2008 NetSuite • Increased focus on iterative design, prototyping and testing
International • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model

July 2008 NetSuite • Partnered with Navigant Consulting and Demand Solutions Group
Subsidiary • Increased focus on change management

• Used Quick Start consulting services

Adaptive • Used in-house resources for design, configuration, and deployment
Planning • Worked to document while configuring and modifying
Sept 2008

33
Implementation
Implementation Critical Success Factors

• Followed standard software development lifecycle procedures

Sept 2007 NetSuite • Used in-house configuration and project management expertise
USA • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld

Jan 2008 NetSuite • Increased focus on iterative design, prototyping and testing
International • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model

July 2008 NetSuite • Partnered with Navigant Consulting and Demand Solutions Group
Subsidiary • Increased focus on change management

• Used Quick Start consulting services

Sept 2008 Adaptive • Used in-house resources for design, configuration, and deployment
Planning • Business responsible for ongoing maintenance and support

34
Impact

ƒ Increased business agility ƒ Rapid and frequent planning

ƒ Advanced analytics ƒ Detailed modeling
ƒ Continuous improvement ƒ Increased collaboration

Integration
ƒ Strategy, planning, and execution linkage
ƒ Scenario analysis and transaction level validation
ƒ Ability to continuously monitor performance
Managing the Business in a Downturn

ƒ Uploading the budget from Adaptive Planning to NetSuite enables:

– Scenario planning by senior executives

– More accurate and detailed cash flow forecasting

– Dramatic increase in the focus on and accuracy of variance analysis

– Monthly rather than quarterly review of departmental variances

– Improved reporting to key management stakeholders and board of

directors

ƒ Based on access to key financial data and analysis, processes can be adjusted
to meet business realities
Questions & Answers

© Copyright NetSuite Inc., All Rights Reserved.

Contact Information
Stuart Rauch
Director, Product Marketing
NetSuite Inc.
srauch@netsuite.com
James Jones
Director, Financial
Planning & Analysis
KANA Software
jamesjones@kana.com
Rob Hull
CFO and Founder
Adaptive Planning
RHull@adaptiveplanning.com
© Copyright NetSuite Inc., All Rights Reserved.