Derive Systems turns to Sovos for exceptional performance and service

Case Study

Derive Systems

Derive Systems stays current and compliant on state nexus laws with Sovos.


Business Challenges

  • Staying current on individual state nexus laws and remaining compliant was becoming more of a challenge in the wake of South Dakota v. Wayfair
  • Internal resources for managing sales tax and filing obligations were limited, necessitating a higher level of efficiency in their tax partner
  • The responsiveness and level of service from their current vendor was not up to their expectations and fell far short of commitments
  • Derive Systems needed a partner that was responsive and would address questions and issues quickly and efficiently


Derive Systems selected Sovos for its Sales & Use Tax capabilities. Critical considerations included:

  • Speed and accuracy of information
  • Customer support system and responsiveness
  • Consistency, reliability and performance of Sales & Use Tax solution
  • A proven track record with NetSuite


  • Increased confidence that returns are being managed timely and correctly
  • An expert resource that proactively tracks and updates regulatory changes
  • Reduced burden on the internal team to determine and file taxes
  • A dedicated partner to address any issues promptly and professionally

“What really impressed me with Sovos, if I had a tech support question, I was talking to somebody in less than a minute.”

Ted Klassen

Controller, Derive Systems

The Company

Derive Systems is a leading automotive technology company with nearly two million software installations powering upgraded experiences for drivers on the road today. Derive connects vehicles and their engines to the digital world, enabling individuals and fleets to take control and optimize for performance, fuel efficiency, safety, and more.

The Derive Systems platform leverages added on-board intelligence, powerful cloud data integration, enhanced sensors, and further technologies to personalize every automotive experience.

The Challenge

The rapidly changing tax landscape combined with limited resources internally was making it difficult for Derive Systems to keep pace in meeting its individual state sales tax obligations and remain compliant. The company needed a tax software to help them manage sales tax reporting and filing obligations and they needed a solution that could plug directly into NetSuite.

After selecting and implementing a different vendor’s product, they quickly realized that they were not receiving the level of service and support they had been promised. Inquiries would go left unanswered for days and weeks on end, it became clear that a change was needed. In the end, Derive Systems decided it was best to end the relationship.

“We initially picked another vendor to help us solve our sales tax problem. We went with them for a period of time, but we got to a point where we were having a lot of questions that were not being answered. They were being radio silent. Therefore, we decided to drop them and go with Sovos.”

Jordan Klassen

IT Manager, Derive Systems

Why Sovos?

Derive Systems selected Sovos to simplify its Sales & Use Tax processes. Easing the burden on internal operations while ensuring compliance with all tax obligations was the goal and Sovos was best suited to help them accomplish this objective.

Based upon prior experience with Sovos’ 1099 services, Derive Systems felt confident that we would provide them with the level of professionalism and support their business demanded.