As a leading NetSuite Solution Provider, we are often asked questions related to NetSuite pricing and licensing structure.
- How much does NetSuite cost?
- What's NetSuite's pricing model?
- How can I save money on NetSuite licensing costs?
Therefore we bundled (and updated for November 2023) all of our best content together to create "The Ultimate NetSuite Pricing & Licensing Guide for 2023".
This guide is designed for busy business leaders considering NetSuite ERP solutions for the very first time.
Our goal is to arm you with the necessary information on how to get the most out of your NetSuite evaluation and purchase experience.
And ultimately to help first time NetSuite buyers avoid saying: "if only I had known..."
Table of Contents
Chapter 1: Exploring Different Paths to NetSuite Licensing
If you're new to NetSuite, you might think that reaching out directly to NetSuite is the best option to finding out how much NetSuite is going to cost you. However, NetSuite actually offers several ways to get licenses and services, each with its own advantages and disadvantages. In this chapter, we will explore these different options to help you determine the best approach for your specific needs.
1. NetSuite's Direct Sales & Service Team
NetSuite's direct sales organization is made up of industry-specific telesales representatives who excel in generating ERP leads for their solutions. They provide their own professional services and an implementation methodology called SuiteSuccess, which guarantees to have clients up and running on NetSuite within 100 days. While SuiteSuccess is suitable for simpler needs and specific industries, it may not be the ideal choice for larger organizations with more complex requirements.
Choosing to work directly with NetSuite provides customers with a direct line to the software vendor and its dedicated team. This approach is particularly beneficial for those who value a well-structured sales process and require support for large-scale global deployments. However, it's important to note that some customers have expressed concerns about a lack of transparency in pricing information during the sales process, and the direct sales team may not have the same level of expertise as experienced consulting organizations.
Who It’s For:
- Best For: Companies with simpler needs and those in specific industries.
- Not Ideal For: Larger companies that need a lot of customizations and integrations.
Pros and Cons:
- Direct connection to the software vendor.
- Strong support for big, global setups.
- Clear and structured sales process.
- Less flexible during evaluation and implementation.
- Some found pricing information not very clear.
- Interaction with multiple contacts can lead to a lack of continuity.
- Challenging and time consuming sales cycles
- Customers find frustrations with automatic price increases
2. NetSuite BPO Partners
NetSuite's BPO program is designed for accounting agencies that bundle software and recurring accounting services into a monthly package. This approach is suitable for small companies with high growth potential that are not ready to establish an in-house accounting and finance team. However, it may limit customization capabilities and hinder the ability to take full advantage of NetSuite's industry-leading features.
Who It’s For:
- Best For: Small, well-funded companies aiming for growth.
- Not Ideal For: Those who want to make the most of NetSuite’s customization capabilities.
Pros and Cons:
- Combines accounting services with NetSuite software.
- One vendor for both software and services.
- Limits customization options.
- Switching to in-house accounting may require a new NetSuite setup.
3. NetSuite Solution Provider
Who Are They?
NetSuite Solution Providers are consulting firms with a variety of backgrounds and expertise. Their mission is to assist first-time ERP buyers in assessing whether NetSuite aligns with their organization's needs and to propose a customized blend of software and professional services.
Why Work With Them?
Collaborating with a NetSuite Solution Provider grants you direct access to both NetSuite resources and seasoned consultants. This ensures you secure NetSuite software under the most favorable terms and pricing. These providers offer a range of implementation methodologies and continuous support services, including customizations, integrations, and optimizations post-go-live, acting as your singular contact point throughout the software lifecycle.
Who It’s For:
- Best For: Businesses seeking personalized, high-quality solutions and valuable insights into NetSuite licensing that aim to reduce costs and enhance return on investment.
- Not Ideal For: Those who prefer direct vendor interaction for every aspect.
Pros and Cons:
- Access to both NetSuite resources and experienced consultants.
- Offers a variety of implementation methods and ongoing support.
- Single point of contact throughout the entire NetSuite lifecycle.
- Finding a reputable partner with deep NetSuite knowledge is crucial.
- Some niche products may require additional NetSuite resources.
- Partners make the licensing and implementation smoother
- Requires a solid partner due to NetSuite's robust capabilities
Chapter 2: Understanding the Packaging and Pricing of NetSuite Subscriptions
Unlike industry-specific niche ERP systems, NetSuite is designed to support a multitude of industries and business models, across all departments. The breadth of the NetSuite platform creates a lot of pricing options designed to make the software affordable for both startups as well as enterprise-sized organizations. Whether you're a small three-person accounting team supporting an e-commerce business or a global manufacturer, NetSuite has a pricing & licensing package for you!
NetSuite offers multiple licensing packages specific to different types of industries, company sizes and modes of deployment.
First, we're going to look at the various Industry packages. Each industry package includes core NetSuite functionality plus add-on modules relevant to each industry.
The table below provides a detailed description of what's included with core NetSuite as well as the various industry packages.
NetSuite ERP Base Functionality
NetSuite CRM Base Functionality
• ERP with general ledger, accounts payable, purchasing, inventory, order entry, accounts receivable, expense reporting, advanced shipping with integrated UPS or FedEx
What's Included: NetSuite Retail Apparel Commerce includes the same core functionality as NetSuite ERP plus the following:
What's Included: NetSuite Manufacturing ERP includes the same core functionality as NetSuite ERP plus the following:
Wholesale Distributor Edition
What's Included: NetSuite Software edition includes the same core functionality as NetSuite ERP plus the following:
• Financial management
What's Included: NetSuite Wholesale and Distribution license includes the same core functionality as NetSuite ERP plus the
|Professional Services Edition||Retail Omnichannel Edition|
|What's Included: NetSuite SRP includes the same core functionality as NetSuite ERP plus the following:
• Financial management
• Project management
• Job costing
• Resource allocation
• Revenue management
| What's Included: NetSuite Retail Omnichannel includes the same core functionality as NetSuite ERP plus the following:
• Financial management
• Inventory management
• SuiteCommerce Advanced (E-commerce platform)
• SuiteCommerce InStore (POS)
• Multiple units of measure
• Matrix items
• Serialized inventory
• Bar coding: Items and transactions
• Pick, pack and ship
• Advanced budgeting
• Advanced billing schedule
Understanding NetSuite Pricing Base Packages
Once you've determined whether or not you are going to license NetSuite via one of the industry packages above or just license NetSuite a la carte, the next step is to determine what category you belong to based upon company size and needs.
NetSuite's editions range from affordable Standard options to more fully featured Premium versions. Monthly fees are structured progressively based on the level of functionality required.
Below are various packages based upon company size:
Here's a simplified classification:
- Starter (Select Industries): Tailored for up to 15 users.
- Emerging (Select Industries): Suitable for up to 30 users.
- Limited Edition: Designed for businesses with fewer than 10 users and under 50 employees.
- Mid-Market Edition: Ideal for businesses exceeding 10 users and/or managing more than one legal entity (NetSuite OneWorld).
- Enterprise Edition: Designed for large-scale operations with over 1,000 users.
And to top it off, NetSuite offers separate license packages based upon the deployment model: SuiteSuccess vs. traditional deployment method.
You can begin to see how it might get a little confusing with all these permutations and options!
There's good news, you can enlist the help of Techfino to make sure you are getting the best options at the best prices.
Diving into NetSuite Package Options
Having shed light on industry packages and categories, let’s simplify things further by exploring the core CRM and ERP licensing options provided by NetSuite:
- NetSuite Limited Edition (Also Known as "SuiteSuccess Starter"): Exclusively designed for companies with less than ten named users, supporting a single legal entity.
- NetSuite Financials Only Mid-Market Edition (ERP Only): Extended support for businesses with more than ten users and/or multiple legal entities, exclusive of CRM.
- NetSuite Mid-Market Edition (Also Known as "SuiteSuccess Standard"): Comprehensive support for businesses with more than ten users and/or multiple legal entities, inclusive of both CRM and ERP.
Each edition is built on the same foundational technology and is hosted in NetSuite's multi-tenant public cloud within Oracle's secure data centers. A distinctive advantage of NetSuite is its scalability – as your business evolves, your NetSuite subscription seamlessly adapts, eliminating the need for system migration and downtime. This adaptability makes NetSuite a valuable asset for both small businesses and enterprise-level corporations, ensuring your initial investment continues to yield returns.
For those seeking functionalities beyond the standard CRM and ERP features of the core platform, NetSuite offers a plethora of add-on modules tailored to specific business needs. These can be licensed à la carte or bundled in the form of an Industry Suite, providing you with a customized solution that aligns with your unique business landscape.
Common NetSuite Add On Modules Include:
- Advanced Financials
- Fixed Assets
- Budgeting & Planning
- Revenue Recognition
- WIP & Routing
- Work Orders & Assemblies
- Warehouse Management (WMS)
- Demand Planning
- Project Management
- Resource Allocation
- Job Costing
- SuitePeople (HCM)
- SuiteCommerce (Ecommerce)
Similar to user licenses, the advanced modules may be subscribed to at any time during the length of your NetSuite subscription agreement and may be removed during your subscription renewal period. Having the flexibility to add and remove modules as your business needs change is a huge advantage over traditional on-prem perpetual ERP software.
Chapter 3: Understanding NetSuite Pricing: User Licenses
When it comes to determining the cost of your NetSuite subscription, one of the key factors to consider is the number of user licenses you require. NetSuite follows a named user approach, meaning that each individual who needs full access to the system must have their own unique license.
NetSuite offers a range of user types, with the most common being the full user license. This license grants access to all areas of the application, allowing users to perform transactions and access sensitive information based on their assigned permissions and role-based security.
In addition to the full user license, NetSuite also offers an Employee Self-Service license. This license is ideal for individuals who need to log time against projects, manage expense reports, or record time off. While it has limited usability within NetSuite, it provides a cost-effective solution for certain user needs.
It's important to note that read-only access to NetSuite's reports and dashboards requires a full user license. This allows management teams to thoroughly analyze reports and transactions. However, if static reports are sufficient, automated reports can be scheduled in various formats without the need for a full user license.
NetSuite's user-based licensing model ensures transparency and eliminates hidden fees. By paying only for active users, you can effectively manage your subscription costs. So whether you have a small team or a large organization, NetSuite offers flexible licensing options to meet your specific needs.
If you're interested in calculating your NetSuite license price or exploring advanced modules tailored to your business requirements, feel free to reach out to our team at Techfino. We're here to help you navigate the world of NetSuite pricing and find the best options at the best prices for your business.
In the world of SaaS software licensing, one of the primary determinants of overall cost is the number of user licenses required. It follows the logical path—the more users you have, the steeper your subscription agreement will be.
Diving into the specifics of NetSuite price per user, NetSuite employs a named user approach, contrasting with a concurrent model. This means every individual requiring full access to the system needs a unique license, ensuring comprehensive auditability.
NetSuite's transparent user-based licensing model means paying only for active users without hidden fees. Full access starts at a reasonable price point per user.
While it might seem sensible for specific roles with limited needs to share a login, the best practice is unequivocally to assign a single user license to each individual.
NetSuite offers a spectrum of user types, among which the full user license is most prevalent. A full user gains access to all application areas, determined by their permissions and role-based security—essential for anyone transacting in the system. Interested in calculating your NetSuite license price? Click on the blue button below!
Another widely utilized license is the Employee Self-Service license, available in packs of five for the price of one. These are tailor-made for individuals who need to log time against a project, manage expense reports, or record PTO, albeit with limited usability within NetSuite.
Additionally, there exist less common user types essential for customers deploying specific advanced modules, such as Oracle NetSuite Planning & Budgeting Cloud Service Users and NetSuite OpenAir Users, which we won't delve into at the moment.
Addressing inquiries about read-only access—granting your management team access to NetSuite’s reports and dashboards necessitates a full user license. This provides the ability to scrutinize reports and transactions down to the minutest detail. However, if static reports suffice, you can schedule automated reports in various formats (e.g., Excel, CSV, PDF) based on desired frequency and output.
Remember, starting with NetSuite doesn’t require a plethora of user licenses. You have the flexibility to add new users anytime throughout your license agreement and scale back during your renewal period—adjusting mid-agreement, however, is not an option. Therefore, thoughtful consideration of the quantity and type of user licenses is imperative to avoid over-purchasing and optimize your investment in NetSuite.
The journey of NetSuite SuiteCommerce mirrors the dynamic evolution of e-commerce. Originating as Site Builder, it marked NetSuite's initial foray into the digital commerce landscape, long before mobile shopping became a cornerstone of consumer behavior. Though it garnered a substantial user base, Site Builder’s capabilities needed a revamp to meet the demands of today’s mobile-first world.
Recognizing this, NetSuite embarked on a five-year journey of significant investment, enhancing the SuiteCommerce portfolio through organic development and key acquisitions, including LightSpeed CMS, Retail Anywhere, and Venda. The culmination of these efforts birthed three distinct products: SuiteCommerce Standard, SuiteCommerce Advanced, and SuiteCommerce InStore.
Distinguishing itself from standalone solutions like Shopify or Magento, NetSuite SuiteCommerce is intrinsically integrated with NetSuite ERP and CRM. This native integration eliminates the need for connectors, offering a significant advantage by streamlining business processes and enhancing efficiency.
NetSuite Ecommerce Cost & Product Overview:
Taking a templated approach reminiscent of “Shopify”, SuiteCommerce Standard offers a SaaS-based e-commerce solution aimed at businesses with simpler needs. This product allows companies to quickly establish a full-featured e-commerce site while benefiting from rapid feature releases. It’s the go-to option for businesses seeking a balance between functionality and swift deployment.
For businesses requiring a high degree of customization and robust capabilities, SuiteCommerce Advanced is the answer. It offers unlimited design flexibility, enabling the running of both B2B and B2C operations through a single, mobile-optimized platform. With features such as faceted search, dynamic merchandising, and advanced pricing, it’s ideally suited for high-volume sellers seeking a tailored shopping experience.
Bridging the digital and physical realms, SuiteCommerce InStore serves as a mobile Point of Sale (POS) solution. It’s designed to enrich the in-store experience, providing real-time access to customer and inventory information. Utilizing cloud-delivered, commoditized hardware, it grants associates the mobility to enhance customer service seamlessly.
While all NetSuite Partners can technically sell SuiteCommerce products not all partners are able to implement them. When considering SuiteCommerce solutions it's important to partner with a Commerce Agency Partner (CAP) only they can truly help you design and deploy a SuiteCommerce solution.
5. NetSuite Implementation Pricing
NetSuite implementation pricing is as diverse as the businesses it serves, varying depending on the size, complexity, and unique requirements of your organization. Generally, businesses can expect to invest between $25,000 to $100,000 in the implementation process. But why such a range?
The implementation process involves configuring the NetSuite environment to align with your business processes, integrating it with other systems, and customizing it to meet your specific needs. Each of these steps can add to the overall cost, with customizations and integrations being the primary influencers.
For instance, a small business with straightforward processes and minimal integrations may fall at the lower end of the spectrum, while a large enterprise requiring extensive customizations and multiple integrations will likely incur higher costs. However, it’s essential to view this investment through the lens of value – the efficiencies, insights, and innovations that a tailored NetSuite system brings to your operations are invaluable.
To optimize your investment, here are a few strategies:
- Define Clear Objectives: Having a clear understanding of what you want to achieve with NetSuite can help streamline the implementation process and avoid unnecessary costs.
- Leverage Standard Features: Explore NetSuite's extensive standard features before opting for customizations. Often, businesses find that the out-of-the-box functionalities meet their needs.
- Choose the Right Partner: Working with an experienced NetSuite partner who understands your industry and business needs can help tailor solutions, reducing the need for extensive customizations and thereby controlling costs.
Remember, there's no one-size-fits-all answer to NetSuite implementation pricing, but with the right approach and partner, you can maximize value and see a significant return on your investment.
|Line Items||Price||Fee Schedule|
|NetSuite Software Licensing Price||Click to calculate||Annual|
|Advanced Modules||Click to calculate||Annual|
|NetSuite Implementation Cost||$25,000 - $100,000+||One-time|
|NetSuite Customizations Cost||$150-225 per hour||As needed|
|NetSuite Integrations Cost||$0-$3,000+||Annual + One-time setup|
|NetSuite Training & Support Cost||$2,500 - $15,000||As needed|
6. Cost-Saving Strategies for NetSuite Licensing
Information is Power
By working with a NetSuite Solution Provider for NetSuite licensing they can educate you on the potential pitfalls that come with NetSuite licensing, after all it's what they do for a living.
One common mistake we see from NetSuite buyers is in thinking that they can renegotiate their NetSuite licenses next year when the subscription expires. The most important software transaction you make with NetSuite will be the initial. All future renewals are predicated on the initial Subscriptions Software Agreement (SSA) and license estimate you originally signed. Therefore it's important to get it right the first time.
Strategy #1: The Art of Timing
When it comes to purchasing any product or service, including furniture, cars, or software, the timing of the acquisition is just as crucial as the item being bought. This concept may be familiar to many buyers, but for those new to the world of enterprise software, understanding the significance of timing is essential to maximize your investment.
Large publicly traded software corporations such as Oracle, Salesforce, and Microsoft place significant emphasis on their monthly and quarterly financial performance. They prioritize closing deals and meeting targets, especially as the end of a month or quarter approaches. This focus on achieving their goals can be advantageous for potential clients, who may find themselves in a strong position to negotiate better deals during this critical period.
In particular, the last business day of the fiscal calendar provides the optimal opportunity to negotiate a new software agreement. Senior management is highly motivated to close deals and may be willing to offer more competitive pricing or additional incentives to meet their financial targets. This creates a moment for buyers to capitalize on the situation and secure a favorable agreement.
To ensure you make the most out of your NetSuite investment, strategizing the timing of your license acquisition is crucial. Aligning your purchase with your organization's deadlines and the software provider's fiscal calendar can result in significant cost savings and an enhanced return on investment (ROI) for your NetSuite implementation. Remember, timing is everything!
Strategy #2: Navigating NetSuite Contracts
NetSuite's subscription-based model for its software offers both advantages and disadvantages. On one hand, it provides flexibility and frees up capital compared to traditional perpetual software acquisitions. However, switching from one Enterprise Resource Planning (ERP) system to another can be a complex process. NetSuite understands this challenge well.
Now, let's explore how this connects to saving on NetSuite licensing costs. Many Software as a Service (SaaS) vendors, including NetSuite, entice new customers with significant initial discounts, creating the perception of greater value for the money spent on software each year. As your perceived value grows, so does your subscription fee. Over time, this can result in increased software costs that may not align with your expectations.
So, what are your options? Should you consider switching vendors, reluctantly pay the renewal fee, or invest hours negotiating with NetSuite management for a better deal? Each alternative comes with its own time and financial costs.
To make an informed decision and save on NetSuite licensing costs in the long run, it's important to carefully weigh your options and consider the long-term implications. Keep in mind the potential for increasing costs over time and evaluate whether the benefits of sticking with NetSuite outweigh any potential drawbacks. By doing so, you'll be better equipped to make informed choices and optimize your savings on NetSuite licensing costs.
Strategy #3: License NetSuite As You Go
A common misconception among first-time NetSuite buyers is the belief that licensing everything upfront will result in a better deal. However, the true advantage of NetSuite's pricing model lies in its flexibility, allowing you to activate new features and users as and when they become necessary, essentially providing an on-demand service.
While there may be instances where purchasing a larger package in return for a discount is warranted, it is generally more cost-effective for customers to obtain new licenses as needed. This approach leads to more significant savings on NetSuite licensing in the long run.
On numerous occasions, we have encountered new NetSuite clients who have acquired modules and services they did not actually require, simply because they believed they were securing an attractive deal.
Being aware of which licenses to obtain and when to do so can considerably influence your overall NetSuite expenditure. By adopting a gradual licensing strategy, you can better manage costs while still benefiting from the platform's full potential.
6. Concluding Thoughts: Is NetSuite Worth the Investment?
Choosing NetSuite can be a big step forward for any business, helping to make things run smoother and stay competitive. With all its features and options, NetSuite is a strong choice for companies big and small. But, it’s important to get a clear picture of the costs and figure out if it’s a good fit for your needs.
To make this easier, why not use our Online Pricing Calculator? It’s a handy tool that enables us to provide you a personalized cost estimate, helping you decide if NetSuite is the right investment for your business.