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How Much Does NetSuite Cost? An In-Depth Look at Oracle NetSuite ERP Pricing Guide for 2024

  • Posted by Wiktor Borowiec
  • On January 01, 2024

Did you know that the average cost of a NetSuite subscription can vary significantly based on the size of your business and the specific modules you choose?

It's a question that many business leaders grapple with as they consider the leap to a comprehensive ERP solution like NetSuite.

But fear not, our "Ultimate NetSuite Pricing & Licensing Guide for 2024" is here to demystify the process, ensuring you're equipped with the knowledge to make an informed decision that aligns with both your business goals and budget.

 

Table of Contents

  1. NetSuite Licensing Options
  2. NetSuite Licensing & Subscription Packaging
  3. Overview of NetSuite's Price per User
  4. NetSuite E-commerce Pricing Explained
  5. NetSuite Implementation Cost
  6. Strategies to Save Costs on NetSuite Licensing
  7. NetSuite for Small Business
  8. NetSuite Subscription Terms
  9. NetSuite Support Options & Cost
  10. NetSuite Competitors Pricing Comparison
  11. NetSuite Subscription Terms and Renewal Policies
  12. NetSuite's Total Cost of Ownership (TCO)
  13. NetSuite Pricing FAQ
  14. Conclusion: Is NetSuite Worth the Investment

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CHAPTER 1

NetSuite Licensing Options

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.

Option #1 NetSuite's Direct Sales & Professional Service Team

Overview:

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:
  • Pros:
    • Direct connection to the software vendor.
    • Strong support for big, global setups.
    • Clear and structured sales process.
  • Cons:
    • Less flexible during evaluation and implementation.
    • Some found pricing information not very clear.
    • Interaction with multiple contacts can lead to a lack of continuity.
Customer Insights from G2:
  • Challenging and time consuming sales cycles
  • Customers find frustrations with automatic price increases

Source: https://www.g2crowd.com/products/netsuite-erp/reviews

 

Option #2 NetSuite BPO Partners

Overview:

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:
  • Pros:
    • Combines accounting services with NetSuite software.
    • One vendor for both software and services.
  • Cons:
    • Limits customization options.
    • Switching to in-house accounting may require a new NetSuite setup.

 

Option #3 NetSuite Solution Provider Partner (VAR)

Overview:

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 badged employees as well as and nonbiased seasoned consultants that have your best interest in mind. This approach to licensing NetSuite enables you to secure NetSuite software under the most favorable terms and pricing. NetSuite Solution Providers offer a range of implementation methodologies and continuous support services, post-go-live, acting as your singular contact point throughout the software adoption 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:
  • Pros:
    • Access to both NetSuite employees and 3rd party ERP consultants (more pre-sales support)
    • Offers a variety of implementation methods and ongoing support models (more flexibility)
    • Single point of contact throughout the entire NetSuite lifecycle (one throat to choke)
  • Cons:
    • Finding a reputable partner with deep NetSuite knowledge is crucial.
    • Some advanced modules may require NetSuite resources to implement.
Customer Insights from G2:
  • Partners make the licensing and implementation smoother
  • Requires a solid partner due to NetSuite's robust capabilities

Source: https://www.g2crowd.com/products/netsuite-erp/reviews 

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NetSuite Pricing

CHAPTER 2

NetSuite Pricing for Specific Industries

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 industry licensing package specifically for you.

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. It's generally more cost effective to license NetSuite via one of the industry sku's vs licensing each individual advanced module à la carte.  

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

What's Included:

• ERP with general ledger, accounts payable, purchasing, inventory, order entry, accounts receivable, expense reporting, advanced shipping with integrated UPS or FedEx
• NetSuite customer relationship management (CRM) and sales force automation (SFA) with quote and order management, marketing automation with campaigns; customer service and support
• Productivity tools including contacts, calendar, and events
• Real-time dashboards with key business metrics, report snapshots





What's Included:
• NetSuite CRM+ license with one user login
• SFA with quote and order management
• Offline client access for field sales
Marketing automation with campaigns, online forms
• Support with case capture, routing, escalation
• Productivity tools including contacts, calendar, and events
• Intranet document publishing
• Real-time dashboards as workspace with key business metrics, reports and snapshots
• Customer self-service portal with unlimited logins
• Partner management with basic partner portal




 NetSuite Retailer Edition

NetSuite Manufacturing Edition

What's Included: NetSuite Retail Apparel Commerce includes the same core functionality as NetSuite ERP plus the following:
• Financial management
• Inventory management
• Demand planning
• Grid order management
• Work orders and assemblies
• Point of Sale module (POS)
• SuiteCommerce In-Store (POS)
• Pick, pack and ship



What's Included: NetSuite Manufacturing ERP includes the same core functionality as NetSuite ERP plus the following:
• Work orders and assemblies
• Grid order management
• Inventory management
• Demand planning
• Manufacturing work in progress (WIP) and routings





NetSuite Software Edition

NetSuite Wholesale Distributor Edition

What's Included: NetSuite Software edition includes the same core functionality as NetSuite ERP plus the following:

• Financial management
• Revenue management
• Software management

What's IncludedNetSuite Wholesale and Distribution license includes the same core functionality as NetSuite ERP plus the following:
• Inventory management
• Grid order management

NetSuite Professional Services Edition NetSuite 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 In-Store (POS)
• Multiple units of measure
• Matrix items
• Serialized inventory
• Bar coding: Items and transactions
• Pick, pack and ship
• Advanced budgeting
• Advanced billing schedule 




 

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NetSuite Edition Comparison

NetSuite offers a variety of editions tailored to the needs of businesses of different sizes and industries. Understanding these editions can help you determine which one is the best fit for your organization.

1. Starter Edition

  • Description: Ideally suited for for small businesses with up to 15 users, this edition is perfect for companies just beginning their ERP journey. It includes essential ERP functionalities such as general ledger, accounts payable, accounts receivable, and basic CRM capabilities. It's an ideal edition for companies coming off of QuickBooks and looking for tighter integration between financials and inventory or projects.
  • Best For: Small businesses and startups with only one single legal entity
  • Cost: Typically the most affordable, with lower monthly fees.

2. Emerging Edition

  • Description: Designed for businesses with up to 30 users, this edition provides additional functionalities to support growing operations. It includes more advanced financial management tools and expanded CRM features.
  • Best For: Small to medium-sized businesses experiencing growth.
  • Cost: Moderate monthly fees, reflecting the added functionalities.

3. Mid-Market Edition

  • Description: Ideal for businesses with more than 10 users and/or managing more than one legal entity and require the use of NetSuite OneWorld module. It offers comprehensive ERP and CRM solutions along with industry-specific modules.
  • Best For: Medium-sized businesses with more complex needs, including multi-entity management.
  • Cost: Higher monthly fees, justified by the extensive feature set.

4. Enterprise Edition

  • Description: Designed for large-scale operations with over 1,000 users, this edition provides the full spectrum of NetSuite’s functionalities, including advanced financials, supply chain management, and global business management capabilities.
  • Best For: Large enterprises with extensive and complex operational requirements.
  • Cost: Premium pricing, reflecting the broad range of advanced features and scalability.

NetSuite Features

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.

NetSuite Add-On Modules Include:

NetSuite's flexibility and scalability are significantly enhanced by its extensive range of add-on modules. These modules allow businesses to tailor their ERP system to meet specific operational needs, providing advanced functionalities beyond the core ERP and CRM features.

  1. Advanced Financials

    • Description: This module offers enhanced financial management capabilities, including budgeting, forecasting, and advanced revenue recognition.
    • Key Features:
      • Automated revenue recognition
      • Multi-currency management
      • Financial planning and analysis
  2. Fixed Assets

    • Description: Manages the entire lifecycle of fixed assets, from acquisition to depreciation and retirement.
    • Key Features:
      • Automated depreciation schedules
      • Asset revaluation and impairment tracking
      • Integration with general ledger
  3. Budgeting & Planning

    • Description: Provides tools for strategic planning, budgeting, and forecasting to drive informed business decisions.
    • Key Features:
      • Collaborative budgeting and forecasting
      • Scenario planning
      • Variance analysis
  4. Revenue Recognition

    • Description: Ensures compliance with revenue recognition standards (ASC 606, IFRS 15) by automating the revenue recognition process.
    • Key Features:
      • Rule-based revenue recognition
      • Deferred revenue management
      • Real-time financial reporting
  5. Manufacturing (WIP & Routing)

    • Description: Enhances manufacturing operations with work-in-progress tracking and detailed routing capabilities.
    • Key Features:
      • Real-time WIP tracking
      • Multi-level bill of materials (BOM)
      • Production scheduling and routing
  6. Work Orders & Assemblies

    • Description: Manages work orders, assemblies, and production processes.
    • Key Features:
      • Work order creation and management
      • Assembly build and tracking
      • Production planning
  7. Warehouse Management (WMS)

    • Description: Provides advanced warehouse management capabilities to optimize inventory handling and logistics.
    • Key Features:
      • Real-time inventory tracking
      • Automated replenishment
      • Warehouse automation
  8. Demand Planning

    • Description: Enhances supply chain operations with advanced demand planning and forecasting tools.
    • Key Features:
      • Demand forecasting
      • Inventory optimization
      • Supply chain analytics
  9. Project Management

    • Description: Supports comprehensive project management, from planning to execution and tracking.
    • Key Features:
      • Project planning and scheduling
      • Resource allocation and management
      • Time and expense tracking
  10. Resource Allocation

    • Description: Optimizes the allocation of resources to projects and tasks.
    • Key Features:
      • Resource scheduling
      • Utilization tracking
      • Capacity planning
  11. Job Costing

    • Description: Tracks costs associated with specific jobs or projects for accurate financial reporting.
    • Key Features:
      • Job costing and profitability analysis
      • Expense tracking by project
      • Budget vs. actual comparisons
  12. Payroll

    • Description: Automates payroll processing and ensures compliance with tax regulations.
    • Key Features:
      • Automated payroll calculations
      • Tax filing and reporting
      • Employee self-service portal
  13. SuitePeople (HCM)

    • Description: Human Capital Management (HCM) module for managing HR processes and employee data.
    • Key Features:
      • Employee records and profiles
      • Performance management
      • Benefits administration
  14. SuiteCommerce (Ecommerce)

    • Description: Comprehensive e-commerce solution integrated with NetSuite ERP and CRM.
    • Key Features:
      • Online storefront and shopping cart
      • Order management and fulfillment
      • Customer portal and self-service

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.

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NetSuite Pricing

 

CHAPTER 3

NetSuite Price per User License 

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. Calculate your exact user cost right here >>>

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.

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CHAPTER 4

NetSuite SuiteCommerce Explained

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 E-commerce Cost & Product Overview:

SuiteCommerce Standard:
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.

SuiteCommerce Advanced:
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.

SuiteCommerce InStore:
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.  

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Chapter 5

NetSuite Integration Cost & NetSuite Implementation Cost Explained

NetSuite implementation cost 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 $30,000 to $150,000 on a NetSuite implementation. But why such a range?

The NetSuite 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 of your NetSuite implementation, 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

 

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NetSuite Pricing

 

CHAPTER 6

NetSuite Licensing Tips and Best Practices

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. Keep in mind the most important software transaction you make with NetSuite will be the initial software agreement.  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. Working with a partner like Techfino can ensure there are no future surprises.  

Strategy #1: Timing Your NetSuite License Purchase

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 Renewals

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 spend.

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 renewal 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 Only What You Need

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.  

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CHAPTER 7

Is NetSuite Good for Small Businesses?

Understanding NetSuite's Commitment to Small Businesses

Previously, there were concerns among small business leaders that NetSuite was primarily catering to larger clients, making it seem unattainable for smaller enterprises in terms of product offerings and pricing. However, recent advancements have completely changed this perception, highlighting NetSuite's reinvigorated dedication to meeting the specific needs of small businesses.

The Oracle Factor: A Game Changer for SMBs

The acquisition of NetSuite by Oracle brought about a pivotal moment in the company's history. With this acquisition, Oracle redefined NetSuite's target market, specifically focusing on organizations with fewer than 1,000 users. This strategic move effectively positioned NetSuite as a solution tailored to the needs of small to medium-sized businesses. By realigning its focus, NetSuite returned to its roots and reaffirmed its commitment to serving the smaller segment of the market.

NetSuite's Starter Packages: A Boon for Small Businesses

In response to the ever-changing needs of growing companies, NetSuite has introduced a range of "starter" packages. These specially designed packages are perfect for businesses that have outgrown basic accounting solutions like QuickBooks. With robust functionality and affordable entry-level price points, the starter packages offer small businesses an attractive option for scaling their operations without breaking the bank.

Key Features Tailored for Small Business Success

NetSuite's small business packages are not just about affordability; they are feature-rich solutions tailored to the unique challenges and dynamics of small businesses.

They include:

  1. Scalable ERP Solutions: Adapt to the growing needs of your business with scalable solutions.
  2. Integrated Business Processes: Streamline operations with integrated capabilities for finance, sales, supply chain, and customer relations.
  3. Real-time Analytics: Gain insights into your business performance with real-time analytics and reporting tools.
  4. Cloud-based Flexibility: Enjoy the flexibility and accessibility of a cloud-based system, ensuring your team can work from anywhere.

Is NetSuite the Right Fit for Your Small Business?

Determining if NetSuite is the right solution for your small business involves understanding your unique business needs and growth objectives. With NetSuite's starter packages, small businesses now have access to enterprise-grade solutions tailored to their scale and budget. It's an opportunity to leverage a powerful ERP system that grows with your business.

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Chapter 8

NetSuite Subscription Length & Payment Terms

NetSuite offers flexible subscription-based licensing with customizable contractual periods, similar to other SaaS platforms. While the minimum duration is only 12 months, it is common for clients to opt for longer subscriptions ranging from 3 to 5 years, depending on their specific requirements.

Choosing extended terms of 3 or 5 years provides certainty in forecasting software costs over the defined timeframe. It also ensures upfront pricing, eliminating any unexpected increases during renewal. However, it is important to negotiate fixed pricing ceilings within your contract at the time of purchase.

To maximize budget predictability, it is crucial to work with an experienced NetSuite solution provider partner like Techfino who can tailor the subscription duration and associated terms. They can also explore financing options that combine software licensing and implementation services into a consolidated monthly payment schedule, if desired.

While NetSuite allows flexibility in subscription length, prioritizing a longer-term agreement with set pricing limits allows for stability in projecting software expenses over multiple years. An experienced implementation partner can creatively package these options to align with your financial preferences.

NetSuite Pricing

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Chapter 9

NetSuite Support Options: Cost Implications

Understanding the costs associated with NetSuite’s various support options is crucial for budgeting and calculating the Total Cost of Ownership (TCO). Here, we will discuss the different support options, their respective costs, and how they can impact your overall investment in NetSuite.

NetSuite offers a range of support options to cater to different business needs. Basic support is included with all NetSuite subscriptions and provides essential services such as online case submission, access to the knowledge base, and community forums. Since it is included in the base subscription fee, there are no additional costs for basic support. However, businesses might need to allocate more internal resources to handle issues not covered by basic support, which could indirectly impact costs.

For businesses requiring enhanced support, NetSuite Premium Support is available. This option, which typically costs 10-15% of the annual subscription fee, offers 24/7 support, faster response times, and proactive monitoring. While Premium Support adds a significant percentage to the annual fee, it can reduce downtime and associated costs through quicker issue resolution and preventive measures.

Advanced Customer Support (ACS) provides a more comprehensive support solution with personalized service plans, dedicated account managers, and regular business reviews. The cost for ACS varies but generally ranges from 20-30% of the annual subscription fee. Although this represents a substantial addition to the annual cost, the strategic guidance and continuous optimization provided by ACS can enhance the return on investment (ROI) by aligning NetSuite use with business goals and ensuring the system remains optimized.

In addition to NetSuite's support options, there are third-party support alternatives like ContinuedSuccess. ContinuedSuccess offers a flexible, consumption-driven pricing structure based on customizable quarterly subscriptions with pre-purchased support hour banks. This approach contrasts with the rigid capacity limits and annual commitment of ACS, allowing for scalability and adjustment based on specific utilization needs. Organizations looking for specialized expertise or more adaptable support options may find ContinuedSuccess provides a perfect balance of customized support and value. The flexibility to adjust packages based on seasonal demand fluctuations or broader organizational requirements makes third-party providers a viable alternative for many businesses.

SuiteAnswers, NetSuite’s self-service support portal, is another valuable resource. It provides access to a comprehensive knowledge base, training videos, and user community forums at no additional cost. Utilizing SuiteAnswers can help businesses reduce reliance on paid support services by empowering users to resolve issues independently, thereby lowering overall support costs.

The cost of NetSuite’s support options can significantly impact the Total Cost of Ownership (TCO). While basic support is included in the subscription fee, premium and advanced support options add a percentage to the overall cost. Third-party providers offer flexibility and potentially lower costs, while SuiteAnswers provides a valuable free resource. By understanding these costs and their implications, businesses can choose the support level that best balances cost and value, ensuring they maximize their NetSuite investment.

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Chapter 10

NetSuite Competitors: Pricing Comparison

Understanding how NetSuite’s pricing compares to other leading ERP systems can help you make an informed decision about which solution offers the best value for your business. Here, we will explore the pricing structures of some of NetSuite’s main competitors and how they stack up against NetSuite.

SAP Business One

When considering SAP Business One for your business needs, it's important to understand the pricing options available. With SAP Business One, you have the choice between on-premises and cloud deployment, each with its own cost structure. For on-premises deployment, there is a one-time license fee of $3,213 per named user, in addition to annual maintenance costs. On the other hand, the cloud deployment option requires a monthly subscription fee starting around $94 per user.

Comparing the pricing of SAP Business One with NetSuite, it's evident that there are differences to consider. The initial costs for on-premises deployment with SAP Business One are higher, while the cloud pricing is competitive but can become expensive as you add more users and modules. Additionally, the longer implementation time for SAP Business One can contribute to increased overall costs. It's worth noting that SAP Business One is not a true cloud ERP solution with multitenant capabilities, unlike NetSuite.

Microsoft Dynamics 365

Microsoft Dynamics 365 offers businesses a modular pricing structure, enabling them to pay for the specific functionalities they require. The base ERP modules start at $40 per user per month, with additional modules like CRM and Supply Chain priced separately. This modular approach can be cost-effective for businesses with specific needs, but costs can increase as more modules are added. One key advantage of Dynamics 365 is its seamless integration with other Microsoft products, potentially reducing implementation costs for businesses already using these products. While the software costs of Dynamics Business Central are typically lower than NetSuite, the implementation expenses can be three times higher than those of NetSuite. This comparison highlights the importance of considering both initial and long-term costs when choosing a business software solution.

Sage Intacct

Sage Intacct offers a subscription-based pricing model that emphasizes financial management for businesses. The cost starts at around $400 per month for small teams, with additional modules priced separately based on usage. Compared to NetSuite, Sage Intacct is more affordable for small to medium-sized businesses seeking robust financial management capabilities. However, it may lack certain functionalities beyond core financials, which could necessitate investing in additional solutions. While Sage Intacct is a solid choice for growing businesses, it may be less scalable than NetSuite, potentially leading to increased costs as the business expands.

Infor CloudSuite

Compared to CloudSuite, NetSuite generally offers a lower total cost of ownership. NetSuite's true cloud architecture, seamless upgrades, and fixed implementation costs contribute to more predictable expenses. Infor CloudSuite implementations tend to be more complex and time-consuming, often leading to budget increases beyond the initial quote. While Infor's pricing details are not explicitly stated, industry experts suggest that the total cost of ownership for Infor's cloud application is comparatively higher than NetSuite's offering. 

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Chapter 11

NetSuite Subscription Terms and Renewal Policies

NetSuite provides a range of subscription options tailored to meet diverse business needs and financial strategies. Businesses can choose from annual subscriptions, typically renewed every 12 months, or opt for multi-year subscriptions, offering longer terms like 3 or 5 years. Annual subscriptions provide flexibility for budget reassessment, while multi-year options often come with discounted pricing and cost predictability benefits. Payment terms can be customized, with choices between upfront payments for the entire term or spreading payments out monthly or quarterly to aid cash flow management.

When it comes to renewal policies, NetSuite aims to ensure continuity and help businesses plan for their ERP investment. Subscriptions typically renew automatically unless canceled in advance, with businesses usually required to provide notice, such as a 90-day window, if they do not wish to renew. Understanding potential price increases at renewal is crucial, and negotiating price caps during initial agreements can offer protection. Businesses have the opportunity to negotiate terms and conditions when entering into a subscription agreement, covering aspects like price caps, service levels, and customizations/add-ons to ensure the subscription aligns with changing business needs.

It is essential to be aware of cancellation and termination policies to effectively manage potential changes in business strategy. This includes understanding early termination fees and planning for transition services if moving to a different ERP system. By comprehensively understanding and negotiating these terms, businesses can maximize the value derived from their NetSuite investment. Planning for renewals, considering payment options, and being informed about cancellation policies will help manage costs and maintain ERP service continuity effectively.

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Chapter 12

NetSuite's Total Cost of Ownership (TCO)

NetSuite's Total Cost of Ownership (TCO) encompasses various direct and indirect costs associated with implementing and maintaining the ERP system over its lifecycle, typically 3 to 7 years. Understanding these costs is crucial for making an informed investment decision and ensuring long-term value.

Initial Costs

Licensing Fees: NetSuite operates on a subscription model, with fees based on the number of users, required modules, and additional services like storage. The more users and modules you need, the higher the licensing costs. NetSuite also offers discounts for longer contract terms (e.g., 3-5 years).

Implementation Costs: Implementing NetSuite involves significant expenses for consulting, data migration, integration with other systems, customizations, and training. Consulting services are often necessary to guide the implementation process and configure the system. Data migration costs depend on the volume and quality of data, while integration expenses vary based on the number of systems and complexity. Customizations ensure the system meets specific business requirements, adding to the overall cost. Comprehensive training for end-users and administrators is essential for effective adoption.

Ongoing Costs

Subscription/Licensing Fees: These recurring fees cover the ongoing use of NetSuite software and may increase as the business grows and requires more users or modules. Regular price increases are also common in SaaS models.

Maintenance and Upgrades: NetSuite regularly releases updates and new features, typically included in the subscription fees. However, businesses may incur additional costs for testing and validating updates, especially if customizations are impacted. Training for new features or interface changes may also be necessary.

Support and Training: Ongoing support from NetSuite or a partner ensures the system operates smoothly. NetSuite offers various support plans, with higher-tier options costing more. Continued training for new employees and advanced training for existing staff are also essential.

Integration and Customization: Integrating NetSuite with additional systems and maintaining those integrations can incur ongoing costs. Customizations may need updates as business processes change, requiring additional development work.

Internal Resources: Managing NetSuite effectively requires dedicating internal staff to system administration, business process optimization, and change management. These resources are necessary to ensure the system is used to its full potential.

Indirect Costs

Potential Operational Downtime: Transitioning to NetSuite can lead to temporary productivity losses and business disruptions. Data migration or system configuration issues may cause data inaccuracies that require manual corrections.

Opportunity Costs: Not having an optimized ERP system can result in inefficiencies, missed revenue opportunities, and a competitive disadvantage. Manual processes and data silos hinder operational efficiency and decision-making.

NetSuite Support Cost: Advanced Customer Support (ACS) Alternative: In addition to NetSuite's own Advanced Customer Support (ACS) program, third-party support alternatives like ContinuedSuccess can help maximize your NetSuite ROI. ContinuedSuccess offers comprehensive support across technical, functional, and strategic aspects of NetSuite through flexible support tiers. Unlike the annual ACS contract, ContinuedSuccess follows a pricing structure based on customizable quarterly subscriptions with pre-purchased support hour banks. This allows for scalability, with packages adjusted to match specific utilization needs, offering a flexible, consumption-driven approach compared to ACS's rigid capacity limits and annual commitment.

By carefully considering and accounting for these various cost components, businesses can develop a comprehensive TCO analysis for NetSuite. This analysis aids in budgeting, forecasting, and ensuring that the investment in NetSuite aligns with the organization's strategic goals, ultimately delivering long-term value and operational success.

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Chapter 13

NetSuite Pricing FAQ

Q: What is the typical cost per user for NetSuite?

A:The average cost per user for NetSuite varies between $100 and $300 per month. The precise price is determined by the edition and advanced modules you choose to include in your license agreement.

Q: Does NetSuite offer any discounts for nonprofits or educational institutions?

A: Indeed, NetSuite provides discounts of up to 100% on licensing for registered 501(c)(3) non-profit organizations through its Social Impact organization.

Q: What factors determine the cost of a NetSuite implementation?

A: The cost of a NetSuite implementation is determined by various factors, including the number of modules that need to be configured, the level of customizations and integrations required, the complexity of data migration, and the services provided by the implementation partner. Generally, the costs for a NetSuite implementation range from $25,000 to $150,000 or more.

Q: Can I get a discount if I pay for my NetSuite subscription upfront?

A: For organizations seeking monthly or quarterly payment options, it is possible to finance NetSuite licenses through Oracle finance or a third-party leasing company. NetSuite subscription agreements typically require upfront payment, but alternative financing options can provide flexibility to accommodate different payment preferences.

Q: Is there a way to get NetSuite for free or at a very low cost to try it out?

A:NetSuite provides a complimentary 14-day trial that enables you to explore the essential features and evaluate if NetSuite aligns with your business requirements. The sign-up process is quick and can be completed in just a few minutes.

Q: How much do NetSuite customizations typically cost?

A: The cost of NetSuite customizations typically ranges from $125 to $275 per hour, varying based on the intricacy of the customization and the selected partner providing the services.

Q: Is NetSuite cheaper than other ERP systems like SAP or Microsoft Dynamics?

A: NetSuite licenses tend to have a higher price point compared to Microsoft Dynamics, but it's important to note that the cost of implementing Dynamics can be three times higher than that of NetSuite. SAP generally carries a higher price tag compared to NetSuite. This holds true for all ERP products, including Business One, Design, and S/4HANA offerings.

Q: Can small businesses afford NetSuite?

A:Indeed, small businesses can easily afford NetSuite. NetSuite offers specially designed starter packages that cater to the needs of small businesses. These packages provide essential functionalities at a lower cost, making them highly accessible. Moreover, these packages are scalable, allowing businesses to expand their NetSuite capabilities as they grow, ensuring long-term value and flexibility.

Q: How can I save on NetSuite licensing costs?

A: To minimize your NetSuite licensing costs, it is advisable to time your purchase to coincide with NetSuite's fiscal calendar, as this may provide opportunities for discounts. Additionally, carefully evaluate your specific requirements and select the package that best aligns with your needs today and scale up gradually over time instead of making a large upfront investment.

Q: What are the different NetSuite subscription terms and payment options?

A: NetSuite provides clients with the flexibility to choose subscription terms that range from 1 to 5 years, allowing them to prioritize cost predictability and secure fixed pricing. To further enhance convenience, payment options can be customized with the guidance of a NetSuite partner, enabling the combination of software licensing and services into a convenient monthly payment plan.

Q: Is there any third-party support available for NetSuite, apart from Advanced NetSuite Customer Support?

A: Yes, there are third-party support options like ContinuedSuccess, which offer customizable quarterly subscriptions and support hour banks. These alternatives provide technical, functional, and strategic support and can be more flexible and adaptable than NetSuite’s own ACS program.

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Chapter 14

Is NetSuite Worth the Investment?

Wrapping up, understanding how much NetSuite costs is key for businesses thinking about using this powerful cloud-based ERP tool. We've made this guide to make NetSuite's prices and licensing structure easier to understand, helping you, the business leader, make smart choices about your future ERP investment.

As you think about how NetSuite could change your business for the better, it's important to move from just knowing about the licensing cost to figuring out what those costs mean for your business specifically.

That's why we suggest trying our interactive NetSuite Pricing Quiz. This tool lets you put in your own business details and get a custom price estimate for both the software and services and let you know what you can anticipate in terms of discounts and concessions. It's a hands-on way to see if NetSuite's costs match what your business needs and can afford.

Take the Pricing Quiz to get a personalized price estimate that matches your business's unique needs, helping you decide wisely about investing in NetSuite.

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