Intacct, NetSuite and Some Year End Numbers

Intacct has just released their year-end numbers and a quick look at them, along with NetSuite’s latest results, shows great growth in the SaaS accounting/ERP space.

First NetSuite’s report from the end of last year saw;

  • Reports Record Revenue of $49.7 Million, 19% Growth over Prior Year
  • Recurring Revenue Grows 19% Year-over-Year to $41.8 Million
  • Non-GAAP Net Income Grows by Over 600% Year-over-Year
  • Posts Quarterly Operating Cash Flow of $4.5 Million, a 120% Increase vs. Q3’09

Meanwhile, Intacct has reported for the calendar year 2010 and is showing;

  • 800 net-new clients for the year, now 4000 customers worldwide
  • 68% year-over-year growth in revenue
  • Conversion of 11 of the top 100 CPA firms in the US via the AICPA partnership
  • New partner relationships in the Intacct channel program

So what does this all mean? As pointed out by others, SaaS ERP is still very nascent – SaaS ERP adoption is pegged at 3% (compared to 11% for CRM). ERP is lagging behind, partly because it is seen as the last core, strategic bastion for businesses and partly because of the traditional concerns (customization, security etc). But as Krishnan points out in his post;

  • 39% are willing to consider SaaS ERP implementations. This is a 61% increase 2009 to 2010
  • There is a corresponding decreased willingness to consider the traditional licensed on-premise option, which dropped by almost 18%

ERP may be a “late bloomer” when it comes to Cloud Computing but I’m not seeing that reluctance continuing. I’ve long said that everything I’m seeing is pointing to 2011 being a tipping point year for he cloud. True salesforce.com has been successful over a number of years, but for a few years we’ve been hearing resistance to the cloud for core applications long with lack of understanding from the SME sector. I see the Intacct and NetSuite results as a harbinger of good things to come. Bring it on!

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