Netsuite $1 Billion?
Posted by rexdixon on December 19, 2006
Netsuite is looking for that $1 Billion IPO valuation. They reported $70 million in 2006 earnings. I took a look at the site, and I think that combining ERP (enterprise resource planning), CRM (customer relationship management), and eCommerce is a smart, but also dangerous thing.
Why? Well I speak from experience. While some of the readers out there may be in the startup industry in SV, Rex Dixon was responsible for installing and implementing these all in one great systems. I remember one that was written in Gembase over an Oracle database. It was suppose to do it all, and guess what, it never ran successfully. I left that company long before the implmentation was complete. Well for more of that IT money basically, but also for the below also.
It was a botched purchasing decision to start with, and in the process, a VP of operations lost his job, an IT manager reached burnout and quit the biz entirely, and a Sr. Programmer had a heart attack due to stress of trying to implement a system that would not work. Rex Dixon knew a losing situation, and unfortunately he walked into another one. All for the money of course.
Another system, the do it all system (well it started out as tracking system for patients) was supposedly in talks to once again be the do it all registration system of hospitals. Do I need to continue? Do you already know what happened here?
What I am telling you, is that all the systems I have run across (from experience) that are supposedly do it all in one systems – never do it all, no matter how good they look. Is the company Netsuite worth $1 Billion because everyone goes ga-ga? I say Technically Speaking, start thinking and listening to those that have been there, done that. It might wake you up to the reality of the inflation of companies and software on the internet.