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


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Best in Class

NetSuite is a cloud-based business management suite that unifies Enterprise Resource Planning (ERP), Financials, Customer Relationship Management (CRM) and eCommerce. Its best-in-class cloud solution provides cloud financials, CRM, ERP, HCM, ecommerce and professional services automation management for business in different industries like Retail, Manufacturing, and Software-as-a-Service, to name a few. NetSuite is trusted by over 18,000 businesses.

Champion in Scalability

NetSuite Global Cloud ERP provides a scalable solution for small, medium, and global businesses. The scalability allows businesses with limited budget to leverage NetSuite’s functionalities. Functions include complete financial management including invoicing and revenue recognition management that helps businesses accelerate their financial processes with real-time multi-currency consolidation and real-time roll-up across orders, account receivable, accounts payable, payroll, inventory, billing, invoicing, and order fulfillment.

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Key Benefits

Oracle NetSuite Enterprise Resource Planning (ERP) has a broad range of features and functionalities that streamlines business processes and increases efficiency that helps reduce human-error and cost. NetSuite Built-In Business Intelligence provides businesses with clear reporting, visual analytics and accurate insights for a better overview of the business landscape. NetSuite is designed for scalability to support growth. Businesses can add specific NetSuite functionalities depending on business requirements and current demand.

List of Functionalities

    1. Financial Management
    2. Financial Planning
    3. Order Management
    4. Production Management
    5. Supply Chain Management
    6. Warehouse and Fulfillment
    7. Procurement

List of Supported Industries

    1. Retail: In-Store & eCommerce
    2. Manufacturing
    3. Professional & Field Services
    4. Software, SaaS & Tech
    5. Construction & Property Development
    6. Food and Beverage
    7. Transportation and Logistics

What is NetSuite?

Find out the basics of ERP and NetSuite’s History & Background Learn More
Know detailed information about NetSuite, its features and functions, in our “What is NetSuite?” blog. Read More
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All Business Sizes

NetSuite is for businesses of all sizes from startups, small, medium, and enterprise businesses

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Multiple Industries

NetSuite is used by business from multiple industries from retail, manufacturing and many more.

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Every User Role

NetSuite has solutions for every role from CEO, CFO, and CIO to Financial Controllers, Accounting & Warehouse Staff, etc.

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Current Software

Migrate with ease from a number of other on-premise and cloud-based ERP and Financial/Accounting Systems, such as Quickbooks, Sage, and Microsoft Dynamics GP.

NetSuite ERP: Pricing Model

Main Pricing Components

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

    1. The Suite, based upon your company size
    2. The Add-On Advanced Modules, based upon your business processes
    3. The Users,  based upon the number of employees that need user access

NetSuite pricing is also impacted by other cost factors such as add-on features: NetSuite Sandbox, Premium Support, etc.

1. The Suite

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)

2. The Add-On Advanced Modules

NetSuite modules are function or industry-specific business process configurations. These add-on modules can be licensed through ala carte (pick and choose) or through industry-based packages (e.g. NetSuite Manufacturing, Retailer, Software, Wholesale Distributor Edition, etc.). Below are some of the most common add-on modules:
    • Advanced Financials
    • Budgeting & Planning
    • Fixed Assets
    • Advanced Manufacturing
    • Advanced Revenue Recognition
    • WIP & Routing
    • Work Orders & Assemblies
    • Warehouse Management (WMS)
    • Quality Module

3. The Users

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.

Excelym can help you navigate and guide your company in determining the best solution for your business needs.

NetSuite ERP: How to buy a NetSuite License

  1. 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.

  2. 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. 

  3. Sign your service license agreement and complete payment

Having agreed on the costs 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. 

  4. 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.

  5. Take advantage of financing options

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

NetSuite ERP, Total Cost of Ownership: Optimization & Operating Cost Factors

Know exactly the associated costs of running NetSuite ERP.

  1. Advisory/ Consultation Cost (Optional)

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.

  2. NetSuite Software (SaaS) Recurring Cost

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.

  3. 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.

  4. 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 coding, testing, and deployment. Rates can go up to $200 per hour for both midsized practice consultants and established NetSuite services providers.

  5. 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.

  6. 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.

  7. 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: TCO blog for a more detailed discussion about NetSuite’s TCO or Total Cost of Ownership.

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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