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NetSuite vs SAP: Which is the best solution for your business?
How do you choose between two of the most powerful ERP systems available today—NetSuite and SAP? This decision is critical for any organization...
12 min read
Admin : Jan 20, 2025 10:15:00 AM
Thinking about NetSuite? Be prepared—many businesses underestimate the costs! Before you commit, here’s what you REALLY need to know about pricing and licensing in 2025.
In this blog post, we will explore the various factors that determine the pricing and licensing of NetSuite, providing you with the necessary information to make an informed decision for your business.
NetSuite's pricing model is fundamentally built around the concept of a Suite The specific suite your business requires hinges on factors like your company's size and the particular functionalities you need. For example does your business contain multiple legal entities? If so, you would to jump to Mid-Market Edition regardless of the number of employees or users you have..
Exploring NetSuite's Suite Options In the language of NetSuite, these suites are categorized as:
NetSuite Starter Edition: Perfectly tailored for smaller businesses with less than 10 users or those with limited requirements.The pricing for the starter edition starts at approximately $1,000 per month.
NetSuite Mid-Market Edition: Expertly designed for mid-sized organizations with more than 10 users and/or multiple legal entities. The pricing for the starter edition begins at around $2,500 per month.
NetSuite Enterprise Edition: Specifically suited for large enterprises with extensive operational demands. The pricing for the starter edition starts at approximately $5,000 per month.
Each edition provides access to NetSuite’s core ERP functionality, with the flexibility to add advanced modules and customizations based on business needs. Choosing the right edition ensures scalability and cost-effectiveness as your company grows.
When configuring your NetSuite solution, one key aspect to consider is the licensing cost for each named user. NetSuite takes a named user approach to licensing, not concurrent.
NetSuite offers two primary types of user licenses:
User Limitations and Package Upgrades It's important to note that the editions imposes a cap on the maximum number of user licenses you can purchase. Once this limit is reached, upgrading to the next edition becomes necessary to accommodate additional users.
Moreover, many NetSuite base packages inherently include the cost for a certain number of full user licenses. Typically, each package also comes bundled with a 5-pack of self-service user licenses to start.
One of NetSuite’s key advantages is its extensive range of add-on modules, allowing businesses to customize their ERP system based on specific needs. These modules can be enabled at any time during your subscription, but removals are only allowed during contract renewal.
Most NetSuite Advanced Modules range in cost from $499 to $899 per month, with some exceptions.
Commonly licensed advanced modules include the following:
Overview of Service Tiers NetSuite has refined its service tier offerings to ensure they closely align with the evolving needs of its customers. This update simplifies the structure and increases the capabilities of each tier, providing a scalable ERP platform suitable for businesses of varying sizes and complexities.
New Tier Structure and Naming Conventions The previous five-tier system (Shared, Tier 3, Tier 2, Tier 1, and Tier 1+) has been streamlined into four tiers: Standard, Premium, Enterprise, and Ultimate. This change not only simplifies the naming convention but also consolidates the tiers to better match customer needs. For instance, the former Tier 3 and Tier 2 have merged into the new Premium tier.
Simplified Calculations for Service Tiers Replacing the business data storage component with a monthly transaction line count, NetSuite has made it easier for businesses to understand and choose the right tier. This count is based on a rolling six-month average, providing flexibility for occasional spikes in transactions without immediately necessitating a tier upgrade.
Increased Capacity in Each Tier NetSuite has significantly increased the limits for file cabinet storage and user count across all tiers. For example:
Integration and SuiteCloud Licenses The number of SuiteCloud Plus licenses, crucial for managing integrations, has also been adjusted in the new tiers. For instance, the Enterprise tier now allows a maximum of 6 SuiteCloud licenses, up from 5 in the old Tier 1. Notably, the minimum requirement for SuiteCloud licenses has been removed, acknowledging that some organizations might need a higher tier for user count or transaction volume, but not necessarily for integrations.
New Service Tier Capacities and Limits:
All tiers above Standard now include a sandbox, providing an additional advantage for development and testing.
Thinking about implementing NetSuite for your business? You're probably wondering about the costs involved. Let's cut through the confusion and break down exactly what you can expect to pay – and why those costs can vary so dramatically.
Here's the reality: NetSuite implementation costs typically range from $10,000 to $150,000+. Why such a wide range? Because every business has unique needs, complexities, and goals. A good rule of thumb, you can expect implementation costs to be about 2-3 times your annual NetSuite license fee for standard implementations.
The main factors that influence your implementation costs are:
This necessary first step typically takes 50-150 hours, costing between $7,500-$37,500 (at $150-$250 per hour). During this phase, NetSuite Consultants analyze your current systems, identify gaps, and create your implementation blueprint (Business Requirements Document-BRD).
Expect this phase to take 2-3 times longer than the discovery phase. This is where the real work happens – configuring and customizing NetSuite to match your needs.
Costs here can range from $0-$15,000+, depending on your specific needs. You have options:
Here's what you might expect to pay for different components:
While NetSuite implementation represents a significant investment, the long-term benefits of improved efficiency and better business insights can make it worthwhile. The key is careful planning and understanding exactly what your business needs before starting the implementation journey.
Remember: The cheapest implementation isn't always the most cost-effective. Focus on getting the functionality your business needs while being strategic about where you invest your implementation budget.
For a growing wholesale distributor outgrowing applications like QuickBooks and Fishbowl, NetSuite provides the tools needed to scale efficiently. The investment may seem significant upfront, but the long-term benefits—such as real-time inventory tracking, efficient order management, and enhanced financial reporting—often justify the expense.
Here’s an estimated first-year cost breakdown for a 15 user business that needs more robust financial and inventory management software.
Total Annual NetSuite Subscription Cost: $59,196
When planning your NetSuite investment with Kimberlite Partners, it's essential to factor in the ongoing support and financing strategies that best align with your business needs.
Support:
While basic support is often part of the standard package, many organizations benefit from the assurance of around-the-clock assistance. Kimberlite Partners offers premium support options that provide 24/7 access to expert advice, ensuring that any critical issues are resolved swiftly so your operations never miss a beat.
Financing:
Large-scale software investments can be challenging to manage upfront. Kimberlite Partners along with Oracle Finance helps ease the financial load by exploring tailored financing options designed to fit your budget. These solutions can spread out the cost of your NetSuite implementation, making it easier to manage cash flow while still accessing the full benefits of a robust ERP system.
Subscription Duration:
Choosing a longer subscription term, such as a 5-year agreement, can offer significant advantages. It not only locks in predictable pricing over the duration but also provides stability as you scale your operations and invest in ongoing improvements. This long-term commitment can be a strategic move for companies looking to maximize ROI while minimizing unexpected costs.
Sandbox Accounts:
Before fully deploying your customized NetSuite solution, a sandbox environment is invaluable. Kimberlite Partners ensures that you have access to a dedicated testing space where you can trial new features, test integrations, and validate customizations without impacting your live data. This proactive step helps prevent disruptions in day-to-day operations, providing a smoother transition as you move to full production.
NetSuite is a powerful, world-class ERP system, but many businesses continue to rely on other software applications to support operations. That’s where integrating these systems with NetSuite becomes essential.
When your business uses multiple software solutions alongside NetSuite, you’ll need integrations to synchronize your data across these platforms. The cost of these integrations can vary significantly, depending on the complexity of your requirements and the amount of custom development needed. Typically, individual integrations can range from $2,500 to $5,000+ per year, with a one-time implementation fee that might run anywhere from $1,500 to $10,000+.
For instance, you might need to integrate NetSuite with platforms like Salesforce, Shopify, Amazon, ShipStation, or HubSpot. These integrations ensure that your sales, inventory, customer data, and more are all aligned within NetSuite.
Unless you have a dedicated team of developers who are experts in API connections and NetSuite’s SuiteScript, it’s often best to partner with a trusted NetSuite provider. Many solution partners offer pre-built integrations that can be set up quickly—saving you time and reducing the high costs associated with custom development.
If you’re looking for a simpler, more cost-effective solution, NetSuite connectors might be the answer. Unlike custom integrations that require detailed development work, connectors are designed to be easy to implement—often with just a few clicks. They’re ideal for businesses that need to enhance areas like inventory management, order processing, and accounting by centralizing data from ecommerce and point-of-sale systems into NetSuite.
The cost of connectors tends to be lower than full integrations. You can expect to pay anywhere from a few hundred dollars per month up to several thousand dollars per month, depending on the functionality and scale of your operations. An initial setup fee may also apply, but the overall expense is generally more predictable and manageable.
NetSuite offers a range of connectors for popular platforms such as Amazon, WooCommerce, eBay, Walmart, ShipStation, and Shopify POS.
In addition, many third-party providers have developed their own connectors to further streamline the process and help you avoid the lengthy and costly custom development cycles.
NetSuite’s platform isn’t just about core ERP and CRM functionalities—it also offers a range of specialized modules designed to address specific business needs. By selecting only the modules that align with your unique requirements, you can build a highly tailored solution that drives efficiency and growth. Below, we dive into several of these additional modules, outlining their features, typical cost ranges, and licensing models.
SuiteCommerce is designed to empower your online sales and digital presence by integrating e-commerce seamlessly with your backend operations. This module is available in several editions to cater to businesses of varying sizes and requirements.
Overview:
SuiteCommerce comes in multiple flavors:
SuiteCommerce Standard:
This edition is ideal for small to mid-sized businesses looking to establish a professional webstore quickly. It provides essential features like intuitive webstore design, order management, and basic customer engagement tools.
SuiteCommerce Advanced:
For businesses that require more robust online capabilities, SuiteCommerce Advanced offers enhanced functionalities such as personalized product recommendations, advanced marketing automation, and deeper integrations with other NetSuite modules. This edition is particularly suited for organizations experiencing high traffic and complex e-commerce demands.
SuiteCommerce InStore:
Aimed at retailers that operate both online and physical stores, SuiteCommerce InStore bridges the gap between e-commerce and point-of-sale (POS) systems. It ensures that inventory, customer data, and sales are consistently updated across channels.
Cost & Licensing:
This modular approach allows you to select the version that best fits your current operational needs while providing the flexibility to scale as your online business grows.
Managing your workforce effectively is crucial to operational success. NetSuite’s Human Capital Management module, often branded as SuitePeople, helps you streamline HR processes, from payroll and benefits administration to performance reviews and employee engagement.
Overview:
SuitePeople is designed to centralize HR functions, ensuring that all employee data is easily accessible and actionable. The module supports:
Cost & Licensing:
By consolidating HR operations into one platform, SuitePeople helps reduce administrative overhead and improves employee satisfaction—key factors in achieving long-term business success.
OpenAir is a robust project management and professional services automation tool designed specifically for organizations that rely on project-based work. It offers comprehensive features to manage projects from start to finish.
Overview:
OpenAir supports a wide array of project management functions:
Cost & Licensing:
This module is particularly valuable for service organizations that need to balance project demands with cost efficiency and resource management.
For companies with a mobile workforce, optimizing service delivery is critical. NetSuite’s Field Service Management module is engineered to streamline operations for businesses that dispatch technicians or service teams.
Overview:
The Field Service Management module helps ensure that service calls are managed efficiently:
Cost & Licensing:
By enabling efficient field operations, this module can significantly boost service quality and reduce operational costs.
Understanding the total cost of NetSuite—beyond just licensing fees—is essential for making a smart investment in your business's future. With NetSuite’s customizable pricing structure, choosing the right edition, modules, and service tier can be complex. That’s why having a trusted partner to guide you through the process can make all the difference.
At Kimberlite Partners, you’re not just working with consultants—you’re partnering with the original founders of DSG, the largest and most successful NetSuite Solution Provider, which was acquired by NetSuite several years ago. With decades of hands-on experience, we’ve helped businesses across industries select, implement, and optimize NetSuite for maximum ROI.
Considering NetSuite for your business? Get the insights you need to make the right decision. Whether you’re looking for a custom NetSuite pricing estimate or want to discuss your unique needs with a free NetSuite consultation, Kimberlite Partners has you covered.
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