While Gill admitted that the view may be influenced by the fact that NetSuite is largely selling to division-level buyers who do not use those products, he held that trend is occurring. He also noted that the dramatic increase in the average selling price of NetSuite deals does not stem from price increases, but from increasing functionality that can serve larger clients. "As the product gets more sophisticated, we have bigger and bigger deals," Gill said. He believes the increase in selling price has "got a more left to run." Gill also indicated that the selling price will likely rise as the company's manufacturing applications become more robust. "Manufacturing vertical is a more nascent vertical," he said.
Fewer corporations are buying Tier One financial products for enterprise-wide use,