NetSuite SuiteSuccess Not Always So Sweet or Such a Success: Five Action Items for Prospective NetSuite Customers to Take Pre-Contract to Protect Your Legal Rights
By Pam Fulmer
On its website NetSuite, Inc. (“NetSuite), which is now owned by Oracle, touts that its “NetSuite SuiteSuccess is a total solution designed to manage all aspects of a business in a single system” and that “preconfigured, fixed-fee solutions allow customers to go live quickly, in a predicable time frame — and on budget.” Many NetSuite customers enter into the subscription and professional services agreements with NetSuite believing that they have a fixed price contract, which will not require much of an investment of time or energy on their end to get up and running. They are wowed by the slick pre-sales presentations and demos, and don’t understand that often the solution that is being touted in these discussions is not the base product, but instead is a solution with all the bells and whistles that may cost significantly more than what is being quoted. The fact is that the more a prospective customer wants to customize the software to fit its business, the more it will cost and the more time and effort it will take to implement, along with an increased chance of failure.
Oracle appears to be targeting small and medium size businesses with their SuiteSuccess offering. The Oracle/NetSuite sales team talks a good game, and the prospective customer is led to believe that the solution can be implemented quickly and within the fixed price fee quoted. Once the customer signs on the dotted line, often it is presented during contract performance with multiple change orders, which increase the total contract price and delays the ultimate “go live” date. Some customers end up giving up and wanting to terminate the contract and get a refund of monies paid to date. But given the terms of the standard contract, it is not so easy to get out of it and get a refund of fees paid.
So, what steps can companies considering contracting with Oracle take pre-contract to attempt to mitigate the risk in case a dispute with Oracle arises?
We hope potential NetSuite customers find this blog post useful. Tactical Law attorneys are experienced with Oracle/NetSuite agreements and assist companies to resolve their disputes with Oracle.
By Tactical Law Attorneys and From Time to Time Their Guests