Shortage of buzzwords in the tech space

There is never a shortage of buzzwords in the tech space. Though, when it comes to "cloud computing," there is in any case lots of substance behind the noise. Actually, it represents a major shift in business software. By leveraging the Internet, cloud computing allows for cheaper and easier applications - which should boost productivity and improve business decisions.

NetSuite provides enterprise resource planning solutions. These include things like HR, inventory management and general ledger accounting. The market focus is on the mid-market, which NetSuite's CEO, Zach Nelson, calls the "Fortune 5 Million."

The past year

Over the past year, the company posted revenue of $193.1 million, up 16%. Of this, the recurring revenue was about $164 million. And yes, the company was profitable.

But no tech company can grow without the help of partners. So, in the case of NetSuite, it has been aggressive with its business development. A recent deal involves Informatica, which is a top provider of data integration software. The strategic partnership will allow NetSuite clients to deal with their on-premise software solutions, just as from Oracle and SAP. This is particularly attractive since clients may not want to get rid of their existing information innovation investments - but they after all want to benefit from cloud computing.

As should be no surprise, there are many cloud-computing companies popping-up. Some have already hit the IPO market, just as Cornerstone OnDemand. The offering saw a 47% return on its first day of trading.

Yet, when it comes to business applications, a long-term track record is vitally important. Clearly, this is what NetSuite has. And in light of the enormous market possibility, it looks like the growth is for all that very much in the early stages.