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CallidusCloud Consolidates Its IT Mishmash in NetSuite OneWorld

Written By: Predrag Jakovljevic
Published On: February 6 2013

NetSuite was seemingly on a roll at the end of January 2013. A day after its win at the Zicam maker, NetSuite announced that CallidusCloud, a leading provider of cloud-based sales performance management (SPM), training, hiring, and marketing software solutions, has transformed its global business and information technology (IT) efficiency by implementing NetSuite OneWorld. The newly deployed cloud enterprise suite has reportedly improved end-to-end cross-enterprise business visibility and performance for the fast-growing software company to replace an “IT nightmare” of 14 disparate business applications, including enterprise resource planning (ERP) and customer relationship management (CRM).

Spanning financials, ERP, CRM, service delivery, and more in a single integrated solution, NetSuite has enabled CallidusCloud, based in Pleasanton, California, to realize a complete 360-degree view of its business, customers, and partners. This feat was impossible with its previous patchwork of ERP, CRM, marketing, and myriad additional tax and financial solutions along with other disjointed ad hoc applications. In contrast, with NetSuite, CallidusCloud executives and managers have the ability to drill down into customer, financial, and opportunity detail for better, data-driven decisions based on real-time business metrics. Additionally, management gets enhanced reporting capabilities with anytime, anywhere access to key measures and reports through personalized dashboards, substantially reducing the need for IT staff involvement.

Managing Global and Expansive Business

The large-scale implementation utilizes NetSuite OneWorld for real-time management and global financial consolidation across seven CallidusCloud subsidiaries in Europe, Asia, and Australia and to automate multi-currency transactions with customers in nearly 140 countries. On a global basis, NetSuite OneWorld, with support for 190 currencies, 19 languages, and automated tax compliance in more than 40 countries, gives CallidusCloud new capabilities to manage its global subsidiaries and seamlessly conduct international business. NetSuite OneWorld also supports the company’s ongoing merger and acquisition strategy by enabling rapid 30- to 45-day onboarding of new business entities, much faster than would be possible if on-premises ERP software had to be deployed.

CallidusCloud is on track to reduce its monthly global financial close times from seven days to five, while speeding its order-to-cash processes and generating a visible and trusted data set that is important for auditability and regulatory compliance. Across the business, CallidusCloud is replacing the long delays of its previous application patchwork with on-demand visibility into real-time data, while reducing infrastructure costs through elimination of on-premises servers and back-up systems. All in all, CallidusCloud expects to reduce applications spending by more than 30 percent in the move to a single system to run its $100 million revenue publicly traded business (NASDAQ:CALD).

NetSuite’s Sweet Spot

Global software companies have been one of NetSuite’s most successful markets. CallidusCloud has been very acquisitive of late, and one can only imagine what IT landscape it has inherited via a dozen or so acquired smaller companies (e.g., LeadFormix, Webcom, Rapid Intake, Litmos,com, etc.). I might have heard in the past that CallidusCloud was a Microsoft Dynamics ERP user and saleforce.com’s CRM user, while the lower-end likes of Intuit QuickBooks and Sage’s financial products were likely used at the acquired companies. Given a close partnership between salesforce.com and CallidusCloud, one could imagine that salesforce.com (perhaps even FinancialForce.com) was involved in the contest.

Lower total cost of ownership (TCO) due to the integrated ERP and CRM functionality in NetSuite might have tipped the scale in NetSuite’s favor. CallidusCloud can also take advantage of NetSuite’s sophisticated revenue recognition functionality tailored for software companies to more effectively recognize complex, deferred, and multi-element sales and service revenue. The company also uses the NetSuite OpenAir professional services automation (PSA) solution to streamline project management, resource utilization, and time and expense (T&E) reporting across its services team of more than 100 consultants and integrators.

Drinking Its Own Kool-Aid

CallidusCloud’s NetSuite deployment further strengthens a partnership between the two software companies in delivering an optimized solution for organizations to improve their sales performance by leveraging CallidusCloud solutions on top of NetSuite’s core financials/ERP and CRM suite. With the joint solution, sales professionals can access real-time updates to quota and target earnings performance within the context of each opportunity, helping to improve sales execution, while the training solution enables sales people to identify and coach on winning strategies as part of their daily tasks.

Finally, sales operations and finance professionals can access critical sales force activity and pipeline data to gain early insight into earnings and revenue results, and then process post-sales data to close the loop with accurate quote performance and incentive payments. It looks like a win-win for both vendors. CallidusCloud has not been optimally organized and efficient organization thus far (not surprising given its slew of acquisitions with diverse organizations and cultures), and let’s see whether IT rationalization via NetSuite will be a major catalyst towards a more streamlined organization.
 
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