Wall Street: Turning Sour On NetSuite, SaaS?
Talk about role reversal. A few months ago, RightNow was plummeting and NetSuite was skyrocketing. But the two software as a service (SaaS) companies appear to have traded places. Only a day after RightNow announced financial progress, NetSuite delivered growth projections that disappointed Wall Street.
The bottom line for SaaS — and the people who follow the SaaS industry — is pretty clear.
Even the biggest SaaS pundits have to admit that SaaS isn’t an IT cure-all for the ailing economy. Just because you compete in a hot market, that doesn’t guarantee short- or long-term success.
Still skeptical? Look at this three-month chart comparing the performance of NetSuite (stock symbol: N), RightNow (RNOW) and Salesforce.com (CRM) shares. Whether it’s managed service providers or SaaS specialists, all companies are not created the same — nor do they perform the same. This became abundantly clear on May 2, when NetSuite’s latest financial outlook failed to impress investors.