NetSuite

OpenAir to Merge with NetSuite: Creates Leading On-Demand Platform for Services Automation
A Letter from the CEOs of OpenAir and NetSuite

Dear OpenAir Customers,

OpenAir and NetSuite are proud to announce today that we are joining forces to bring together our companies. We have signed a definitive agreement for NetSuite to merge with OpenAir, establishing the leading on-demand platform for Services Automation management.

As you may know, NetSuite is the world’s largest provider of integrated, on-demand business suites. It is a public company listed on the New York Stock Exchange, with over 5,600 customers worldwide. Together, OpenAir and NetSuite will be the clear industry leader in on-demand Services Automation suites.

This combination will bring many benefits to OpenAir customers:

  • More resources and investment for the OpenAir product. By joining NetSuite, OpenAir gains significantly more resources to continue improving and extending the OpenAir product and continuing to execute the company’s vision of revolutionizing how service companies can manage their businesses. 
  • Breakthrough complete solutions for managing your entire business. Almost all OpenAir customers want tight integration between OpenAir’s Services Automation capability and Accounting / ERP systems. By bringing together OpenAir’s deep expertise in on-demand Services Automation and NetSuite’s expertise in integrated ERP business suites, we will jointly create a new exciting end-to-end business management solution for services companies.

In addition to the benefits you will gain, we want to reassure OpenAir customers about some important things:

  • We will support and significantly improve the OpenAir product for years to come. We want to preserve everything that has made OpenAir such a success in the marketplace. We plan to continue developing and extending the OpenAir product for at least ten years, and we will increase investment in the business.
  • We will preserve what you love about OpenAir, and nothing will change in your relationship with OpenAir.  For customers, the impact of this acquisition should be transparent. OpenAir will continue to operate as a distinct company. No positions are being eliminated, and all OpenAir employees are being offered their exact same jobs. The same OpenAir team who supported you yesterday will continue to support you tomorrow.
  • There will be no requirements for OpenAir customers to migrate to NetSuite. OpenAir and NetSuite will create exciting new end-to-end solutions for services companies and invest significantly to meet your future needs, but you will be free to stay with your OpenAir product for years to come. If and when you need an end-to-end business application to run your services company, you will have the best solution in the world. 

To learn more about what this new combination of OpenAir and NetSuite means to you, please review the additional pages shown on this site, including the Q&A and the press announcement.

We are both very excited about bringing together OpenAir and NetSuite — and what this will bring to you, our customers. We are committed to working with you in every way we can to make your own business more successful. We will keep in regular touch with you so that you are aware of our new capabilities and our progress. Thank you for your continued support of OpenAir.

Sincerely,

Morris Panner
CEO
OpenAir

Zach Nelson
CEO
NetSuite Inc.

Perspectives on This Merger
OpenAir Customer Comments on Joining with NetSuite

"The combination of NetSuite and OpenAir would be the holy grail of business systems for a services company. I have always said that it is a shame that a company as great as OpenAir did not offer a broader slice of business functionality to manage a services business. Now the combination of NetSuite and OpenAir can potentially replace my aging CRM and ERP systems with the same robust level of functionality I get with OpenAir."
—  Jeff Greenberg, Managing Director, Prevalent Networks
"The merger of OpenAir and NetSuite shows two of the early leaders in the SaaS movement coming together in a way that benefits their customers, their investors and the wider software community. It also demonstrates that the SaaS revolution, once written off as a fad, is a force to be reckoned with."
—  Eric Berridge, Co-Founder, Bluewolf
"NetSuite's acquisition of OpenAir will enable their mutual customers to obtain a broader set of on-demand solutions from a single source and for channel partners to offer a stronger set of integrated solutions."
—  Jeffrey M. Kaplan, Managing Director of THINKstrategies and founder of the SaaS Showplace
"The economies of developing nations continue to shift toward service economies and these firms need solutions that address their unique needs. With today's announcement, the professional services automation (PSA) space enters the ERP world, particularly the ERP SaaS (software as a service) world, in a big way. This deal brings a strong East Coast presence to a West Coast firm and presents significant cross-selling opportunities for the two firms but, more importantly, this deal should deliver a far superior value proposition to end-users than the non-integrated, costly to implement service solutions on the market today. When you put a SaaS-based front-office, back-office and service industry solution together, a new economic model emerges that benefits both customers and NetSuite shareholders."
—  Brian Sommer, Founder, TechVentive
Comments from OpenAir CEO Morris Panner

"OpenAir pioneered on-demand Service Automation software, and we have been dedicated to making our customers incredibly successful. Our combination with NetSuite now gives us the resources we need to execute on our full vision and our customers' expectations.

"We share with NetSuite a vision of revolutionizing how service and project-based companies can run their business. With the joint expertise and resources of our two companies, we are incredibly excited about what we will be able to achieve for our customers and the opportunity at hand."
Comments from NetSuite CEO Zach Nelson

"We are truly excited to work with the OpenAir team. It's clear that OpenAir has the best product in on-demand professional services automation, as evidenced by stellar customer satisfaction and widespread industry acclaim — including winning the 2008 CODiE Award for ‘Best Business Software Solution' from the Software and Information Industry Association.  We are committed to preserve everything that customers love about OpenAir, and we plan to continue developing and extending the OpenAir product for at least ten years as a stand-alone product.

"In addition, by combining with OpenAir we will accelerate the development of breakthrough new solutions for services companies — particularly project-and time-based companies — providing a full end-to-end on-demand business suite. This is a huge opportunity, and there's no one better than OpenAir for NetSuite to work with on this exciting solution."
Q&A About the Merger

Q.


What is being announced?

A.

Today, NetSuite announced a definitive agreement to acquire OpenAir, a privately held provider of on-demand software for Professional Services Automation. This combination creates the leading provider of on-demand services automation.

This combination will bring many benefits to OpenAir customers, including:

  • More resources and investment for the OpenAir product. By joining NetSuite, OpenAir gains significantly more resources to continue improving and extending the OpenAir product and continuing to execute the company's vision of revolutionizing how service companies can manage their businesses. 
  • Breakthrough complete solutions for managing your entire business. Almost all OpenAir customers want tight integration between OpenAir's Services Automation capability and Accounting / ERP systems. By bringing together OpenAir's deep domain expertise in on-demand Services Automation and NetSuite's expertise in integrated ERP business suites, we will jointly create a new exciting end-to-end business management solution for services companies.
The merger is expected to close in June, subject to customary closing conditions.


Q.

What does this mean for the OpenAir product I use today? Will OpenAir's products continue to be developed and supported?
A. We are committed to support and improve the OpenAir products for at least ten years. In fact, we will be increasing investment in the OpenAir business, and no jobs are being eliminated at the company. There are already plans for exciting new capabilities in the OpenAir product roadmap for 2008 and 2009.


Q.

Will OpenAir continue to support and develop integrations with other third party products, including other ERP and CRM solutions?
A. Yes, we absolutely will continue to support and develop third party integrations. These integrations were created to make your company's use of OpenAir more successful. We remain committed to support our existing integrations with other third-party products and to develop new integrations that customers require.


Q.

As an OpenAir customer, should I expect any changes in the way I receive service and support?
A. No, there will be no changes. OpenAir customers should continue to use their existing service and support processes.


Q.

Will the OpenAir organization be integrated into NetSuite or remain a stand alone entity?
A. OpenAir will remain a standalone entity, but it is now backed by NetSuite, a publicly traded, global software company with more than $100 million in revenues and the largest integrated on-demand customer base.


Q.

What is the future direction of the combined company's product portfolio?
A.

As we have said, we will continue to develop OpenAir as a stand-alone product for at least ten years, and we will increase investment in OpenAir. The emphasis on the OpenAir product will be for those customers who need the deepest capabilities in Professional Services Automation (PSA). 

In the Fall of 2008, we plan to integrate OpenAir with NetSuite via Web services. This integration will tie together the best of breed OpenAir services automation product with NetSuite's best of breed on-demand business management suite. Over time, we will build natively within NetSuite OpenAir's core PSA features, giving companies the option of moving to a truly end-to-end, unified business management suite for managing all aspects of a services company.


Q.

Who is NetSuite?
A. NetSuite Inc. is a leading vendor of on-demand, integrated business management software suites for growing and midsized businesses, as well as divisions of large companies. NetSuite enables companies to manage core business operations in a single system, which includes Accounting / Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Ecommerce.   We offer both horizontal applications that can be used by most types of businesses, as well as industry-specific versions of NetSuite, including NetSuite Wholesale / Distributor Edition, NetSuite Services Company Edition, NetSuite Software Company Edition, and NetSuite Ecommerce Company Edition. NetSuite is a public company listed on the NYSE, with over 765 employees, more than 5,600 customers worldwide, and offices in 7 countries around the world.


Q.

How many employees does NetSuite have? How many employees does OpenAir have?
A. NetSuite has over 765 employees. OpenAir has about 50 employees.


Q.

As an OpenAir customer, where can I go for more information about this announcement or integration plans?
A. To learn more about the union of OpenAir and NetSuite and how it will benefit your company, please review this website or contact your account manager.