NetSuite ERP: Overview, Pricing Model & How-to-Buy Guide


Oracle-NetSuite

NetSuite License Pricing

It can be difficult to make a decision when it comes to NetSuite license pricing. There are many factors to consider, such as the size of your company, your industry, and your specific business needs. The best way to determine which NetSuite license is right for you is to consult with a NetSuite expert. They will be able to assess your company’s specific needs and make recommendations based on their experience.

We will explore the different options available for pricing and licensing with NetSuite.

NetSuite is priced based on a subscription licensing model that is prepaid annually, and is comprised of three main components:

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1.  NetSuite License Edition, No. of Users, and NetSuite Service Tier 

NetSuite is categorized into ‘editions’ based on the number of user license(s) needed:
    • NetSuite Limited Edition: For small businesses with less than 10 required named user licenses
    • NetSuite Mid-Market Edition: For mid-size businesses with more than 10 required named user licenses
    • NetSuite Enterprise Edition: For large user licenses requirement (> 1,000 named users)
For users,  you can purchase either a named user license or a concurrent user license. A full NetSuite user license (named user – not concurrent) has a cost per month, prepaid annually. There are also other user types with limited functionality that cost less however if you intend to transact or interact comprehensively with NetSuite you will be required to have a full user license. In addition to your chosen NetSuite Edition and number of activated users, you also need to designate a NetSuite Service Tier. This governs the maximum limits for your file storage, monthly transaction lines processed, and the number of users. Your total transaction line is determined by the average monthly counts of all transaction lines for the previous six months. Also, note that every tier comes with a Sandbox instance except for the Standard level. NetSuite is available on an annual or multi-year subscription basis. The vast majority of the basic NetSuite product licensing fees start at a cheaper rate. The longer your subscription option the better pricing discount on renewal you will get.
Service Tier Users File Storage (GB) Monthly Transaction Lines
Standard 100 100 200,000
Premium 1,000 1,000 2,000,000
Enterprise 2,000 2,000 10,000,000
Ultimate 4,000 4,000 50,000,000
Excelym can help you navigate and guide your company in determining the best solution for your business needs.

2. NetSuite Add-on Modules

NetSuite modules are functions or industry-specific business process configurations. These add-on modules can be licensed through ala carte (pick and choose) or through industry-based bundles (e.g. NetSuite for Manufacturing, NetSuite for Retail, NetSuite for SaaS, NetSuite for Wholesale Distribution, etc.).  The NetSuite module pricing varies depending on your NetSuite license’s edition. Here’s a full list of NetSuite modules:

NetSuite Customer Relationship Management Module

    • NetSuite CRM 
    • NetSuite Contract Renewals 
    • NetSuite Incentive Compensation

NetSuite Financial Management Modules

    • NetSuite Advanced Financials 
    • NetSuite SuiteBilling
    • NetSuite Revenue Management 
    • NetSuite Planning & Budgeting 
    • NetSuite Multi-Book Accounting 
    • NetSuite OneWorld 
    • NetSuite Dunning Letters 
    • NetSuite Fixed Assets Management 
    • NetSuite Electronic Bank Payments

NetSuite Professional Services Automation Modules

    • NetSuite SuiteProjects
    • NetSuite Project Management 
    • NetSuite OpenAir 

NetSuite Commerce Modules

    • NetSuite SuiteCommerce
    • NetSuite SuiteCommerce Advanced 
    • NetSuite SuiteCommerce InStore 
    • NetSuite SuiteCommerce MyAccount 
    • NetSuite Connector 

NetSuite Supply Chain Modules

    • NetSuite Procurement 
    • NetSuite Warehouse Management System (WMS)
    • NetSuite Demand Planning 
    • NetSuite Quality Management 
    • NetSuite Work in Process (WIP) and Routings
    • NetSuite Work Orders and Assemblies 
    • NetSuite Advanced Manufacturing 

NetSuite Inventory and Order Management Modules

    • NetSuite Advanced Inventory Management
    • NetSuite Advanced Order Management
    • Grid Order Management

NetSuite Human Resources Modules

    • NetSuite Payroll
    • NetSuite SuitePeople HR 
    • NetSuite SuitePeople Performance Management 
Learn more about NetSuite modules

3. NetSuite Implementation Costs

The cost of your NetSuite implementation will be based on the number of modules you need to implement, the level of customization required, and the amount of data that needs to be migrated or processed. 

Professional Services costs for Implementation

There are two approaches to NetSuite implementation:
  • The traditional Full-fledged Implementation through a service provider; and
  • The Guided Implementation, where your team performs the implementation while a NetSuite expert provides the installation roadmap.
The traditional full-fledged Implementation is best suited for businesses with more complicated requirements. This lasts around four and a half months, with the NetSuite expert in charge of all necessary activities from system setup to user training and testing, as well as past data migration. A guided implementation is for companies with simpler business requirements and a limited budget. This is held through a fixed engagement for 3 months with a fixed 160 hours of guidance/ consultation.

Professional Services cost for Customization

In most cases, clients don’t get everything they desire out of the box. This is because companies have unique customer requirements and business processes that’s why it is better to have NetSuite customized. Customizations depend on the complexity of the required functionality and labor hours for coding, testing, and deployment. Rates can go up to $200 per hour for both midsized practice consultants and established NetSuite services providers.

Professional Services cost for Integration

Some businesses want NetSuite to connect/communicate with other systems operated by its clients and suppliers after it’s installed. NetSuite will have to be linked with its 3PL/Third Party Logistics partner for the fulfillment and delivery of various sales orders, as an example. The cost of integration depends on the complexity of the required functionality and labor hours required for the integration coding, testing, and deployment. The rates can go up to $200 for both midsized practice consultants and bigger/ global tech companies.

Internal staff hours

Another factor is the cost of your internal resources (accounting and finance team) involvement throughout the different phases of the project from the start until completion.

Professional Services cost for the Post Go-Live Support

As your company adapts to and gets used to using NetSuite for your finance, accounting, and other operational activities, your team will need support in addressing errors or sudden interruptions. However, the support requirements will then be relatively low compared with implementation. More hours are expected to be spent for support for the first 6-12 months after implementation or post-go-live. Check our NetSuite: Total Cost of Ownership blog for a more detailed discussion about NetSuite’s TCO or Total Cost of Ownership.

Advisory/ Discovery and Analysis/ Consultation Cost (Optional)

When you are implementing NetSuite, you may also need to consider the cost of discovery and analysis services. This is a cost-effective way to get started with NetSuite and determine if it is the right solution for your business. With discovery and analysis services, you can:
    • Get a detailed overview of how NetSuite can be configured to meet your specific business needs
    • Determine the level of customization and integration required
    • Estimate the effort required for data migration
    • Assess the training needs of your team
    • Develop a roadmap for implementation
The cost of discovery and analysis services will vary depending on the size and complexity of your business. It takes a week or two to conduct a thorough evaluation of your business requirements and specifications to determine if NetSuite is the best fit solution for supporting and addressing the gaps in your organization. NetSuite consultants charge between $150-$300 per hour depending on their specialization and experience and the scope of work to do.

How to buy a NetSuite License

Create your package

A consultant will help you identify the suitable NetSuite product according to your business requirements. This includes the product edition, the necessary advanced add-on modules, and the number of named users.

Set your contract length

NetSuite’s starting/minimum subscription plan is only one year but is typically bought, as popularly considered ideal for most companies, at a five-year license plan. This is because discounts increase and financing options become available the longer the contract duration. 

Sign your service license agreement and complete your payment

Having agreed on the cost estimate for your initial NetSuite product package and contract length, the next step is to sign your service license agreement.  Soon after signing your service license agreement, your NetSuite account will be provisioned and thus commences the process for the implementation. 

Be ready to implement

The last, and considerably, the most critical stage is to implement NetSuite and there are many ways to do it. You can choose to have a full-service NetSuite implementation, either directly through Oracle NetSuite or from a third-party vendor or NetSuite Solutions Provider, or do Self-Implementation and assisted by a NetSuite advisor/ implementor. Most go for a NetSuite Solutions Provider, like Excelym, as it offers better project management and other value-added services.

Take advantage of financing options

Excelym can assist in spreading NetSuite Cost through competitive financing options from Oracle.

Explore the #1 cloud business management software suite.

With more than 18,000 customers running NetSuite across more than 200 countries and dependent territories, some of the world’s best-known brands trust their businesses to NetSuite and take their financial and operational processes to the cloud.

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