The NetSuite Cost of Ownership
Cloud-based Enterprise Resource Planning (ERP) software, which covers beyond finance and accounting, is at the forefront of the ERP technology evolution. Cloud-based ERP systems like NetSuite has leaped over in terms of popularity and functionality compared to an on-premise system because of their cost-effectiveness for small and medium-sized business enterprises. Hardware needed to run an on-premise system is one of the key contributors to the cost reduction since these are no longer a requirement for Software as a Service (SaaS) Applications.
Conventional on-premise ERP systems were the norm for large businesses, but the high cost of acquisition of the ERP system software, associated hardware, and vital support staff made it inaccessible to most small and medium-sized business. Cloud-based Software as a Service (SaaS) like NetSuite allows small and medium-sized Businesses to leverage innovating cloud computing technology cost-effectively. NetSuite costs significantly lower than on-premise ERP systems.
The Cost Elements of Adopting NetSuite and the NetSuite Total Cost of OwnershipImplementing an on-premise ERP system or a Cloud-based system is a big step for Small and Medium-sized businesses because of the cost and commitment involved in the development, implementation, and support of the system. The time and manpower required for the deployment of the system is also a major decision factor for small and medium businesses with limited budgets and smaller dedicated IT, staff. These businesses often turn to NetSuite Solutions Provider Partners like Excelym for Cloud-based NetSuite Implementations. Businesses often ask the question, What is the NetSuite Cost? In making an informed decision, businesses have to consider the Total Cost of Ownership of the chosen Enterprise Resource Planning (ERP) Software. These include Advisory/ Consultation Costs, Software (SaaS) recurring costs, Professional Services costs for Implementation and any needed Customization and Integration work, Professional Services costs for ongoing support coverage post-Go-Live, and internal costs associated with staff involved in the project.
Advisory/ Consultation Cost (Optional)
NetSuite Software (SaaS) Recurring Cost
Professional Services costs for Implementation
Professional Services cost for Customization
Professional Services cost for Integration
Internal Cost associated with Staff InvolvedNo NetSuite implementation effort would be effective and successful without the active and engaged participation of key stakeholders, mostly from the accounting and finance team. As such, one must factor in the cost of the time involvement of these resources throughout the different phases of the implementation project, from requirements gathering and validation, through testing, and actual historical data migration in preparation for go-live
Professional Services cost for NetSuite Support post Go-LiveOnce live with NetSuite, organizations will need support as they adapt to and get used to their new system for finance, accounting, and other operational activities. Through time, the level of support needed drops. As such, one must factor in the costs of support, but with a heavier allocation for the first 6 to 12 months post go live, versus thereafter.
A Sample NetSuite TCOThe table below is NOT definitive NetSuite Cost but we wanted to give you a good basis, a good foundational knowledge from which you can evolve on your own to come up with something close to what your exact scenario looks like. These sample costs are historical averages from projects we’ve done in the past 5 years, mid-sized companies in the USA, mostly manufacturing or software/ service companies with annual revenues of at least $12 million and employee headcount of 50 and upwards.
Follow us on a series of blogs that further detail out each of the cost elements above for you to best ascertain in greater detail your expected costs. We will update this blog with links to these follow-on blogs right here:
- Advisory / Consultation Cost
- NetSuite Pricing Model
- Professional Services Cost for Implementation
- Professional Services Cost for Customization
- Professional Services Cost for Integration
- Internal Cost Associated with Staff Involved
- Professional Services cost for NetSuite Support post Go-live
- NetSuite Pricing Frequently Asked Questions
Last Parting thought:
Opting the Services of NetSuite Solutions Provider Partners will increase the initial cost of implementing NetSuite but when it comes to taking into account the Total Cost of Ownership, having a partner that has expertise in Cloud-based ERPs like Excelym can have numerous savings in the long run. Excelym can increase the success of NetSuite Implementations, lesser NetSuite Cost and ensure the return on investment.