NetSuite is trying to go upmarket as a growth strategy, said Forrester Research analyst Paul Hamerman. "They feel their core capabilities, particularly in financial areas, are competitive and meet the needs of multinational companies."
But NetSuite still has some missing pieces, Hamerman said. "They need to fill out the operational ERP components." While NetSuite has a variety of capabilities for procurement and manufacturing, "it's certainly not as comprehensive as an Oracle or an SAP."
That said, "there are a lot of types of companies that don't need a full-blown core ERP system for manufacturing or things like that," Hamerman added.
The CA partnership makes sense as well, he said. "One of the challenges NetSuite has is convincing customers SaaS [software-as-a-service] is safe. I think it is, but NetSuite constantly has to reassure customers they have industrial-strength capabilities around security."
It remains to be seen whether the new features give NetSuite a significant leg up on its competitors, which include Workday and SAP's Business ByDesign as well as on-premises software packages from companies like Infor and Epicor.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's email address is Chris_Kanaracus@idg.com.