THE COMPLETE 2020 NETSUITE PRICING GUIDE

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Originally Posted On: https://www.cumula3.com/the-complete-2020-netsuite-pricing-guide

Welcome to the the most comprehensive NetSuite pricing & licensing guide on the internet.

I’m going to show you everything you need to know to secure an amazing NetSuite license contract that could quite possibly save you tens of thousands of dollars.

In short: if you want a single online resource to help you answer all your NetSuite pricing related questions this should be the one to bookmark for future reference. 

NetSuite’s pricing model starts with the concept of “a suite“. The type of suite you’ll license is determined by your company size and needs.

In NetSuite vernacular, the suites are referred to as NetSuite Limited Edition, NetSuite Mid-Market Edition and NetSuite Enterprise Edition.

Each NetSuite edition is based on the number of named user licenses and/or the total number of employees within your organization.

Each of the NetSuite editions are identical in terms of the underlying code base and deployment model.

Therefore as your company grows and scales you simply adjust your NetSuite subscription size to meet your needs, the transition is seamless.

With NetSuite you never have to worry about a system migration once you’ve outgrown your current edition, you simply just change your pricing model.

Take a look at the NetSuite edition types below:

• NetSuite Limited Edition: Limited Edition is NetSuite pricing for small businesses. It’s ideal for companies that have a single legal entity and do not require more than 10 user licenses and have less than 50 employees.
• NetSuite Mid-Market Edition: NetSuite Mid-Market edition is the right fit for companies that require more than 10 named users and/or have two or more legal entities that need the ability to perform consolidated financial reports across multiple currencies.
• NetSuite Enterprise Edition: NetSuite’s Enterprise edition is designed for companies with more than 1,000+ named users.

Each of the editions mentioned above include the following features & functions right out of the box:

• Marketing Automation
• Sales Force Automation / Opportunity Management (SFA)
• Case Management / Customer Service Management
• Partner Relationship Management

• General Ledger
• Accounts Receivable
• Accounts Payable
• Acceptance of Credit Cards, ACH, EFT
• Bank Management & Reconciliations
• Multi-Currency & Multi-Language
• Item & (basic) Inventory Management
• Project Management (basic capabilities)
• Order Management
• Purchasing
• Employee Center (Time & Expense Management)

When it comes to licensing the end users of software, ERP software vendors offer either a concurrent licensing model or named user model.

NetSuite takes a “named user” approach when it comes to licensing the end users of the application.

A user license is required for roles such as a Controller, a Sales Manager, a Director of Operations, a Customer Service Representative, you get the idea.

Essentially anyone transacting in the system on a routine basis will want a full user license.

Additionally, there are other user licenses for those who perform limited tasks or functions within NetSuite, such as time entry against a project, enter/view/track accrued PTO or enter/view/track expense reports or those who initiate a purchase requisition.  These limited function users licenses  are referred to as “Self-Service Users“.

Finally, there are usually questions regarding “what about users requiring read-only access to NetSuite data“?

It’s important to note that NetSuite data can be exported into Excel or third party applications via ODBC (SuiteAnalytics Connect).

Also, reports can be scheduled and distributed to non-licensed users via native NetSuite reporting functionality in either Excel, CSV, PDF or Word.

Since each company is unique, it’s likely you’ll have needs above and beyond the standard NetSuite CRM and ERP features listed above. For this reason, NetSuite offers several add-on advanced modules you can choose to license based upon your particular business needs. NetSuite modules may be licensed “à la carte” or they may be bundled together in the form of an “Industry Suite“, which are a pre-packaged set of modules commonly used for specific industries. The cost of NetSuite advanced modules and industry suites varies depending upon the edition type (Limited, Mid-Market and Enterprise).

Most NetSuite modules can be subscribed at any time during the length your NetSuite subscription term. The one exception being NetSuite OneWorld. If your business has more than one legal entity that requires separate financials, inter-company transaction management and financial consolidations (or has plans to in the near future) you’ll want to license NetSuite OneWorld right from the start.

One of the great things about NetSuite is that its open architecture and modular license approach allows companies to add and remove modules as the business demands it.

It’s important to note, modules can only be removed during the contract renewal period, so make sure you don’t over license by subscribing to modules only when you need them.

For a detailed description of NetSuite add-on modules, click below to download a datasheet.

• Fixed Assets
• OneWorld
• Advanced Financials
• Advanced Revenue Management
• Multibook Accounting
• SuiteBilling
• Oracle Planning and Budgeting Cloud Service (PBCS)

• Advanced Inventory
• Advanced Procurement
• Warehouse Management (WMS)
• Work Orders & Assemblies
• Manufacturing WIP & Routing
• Advanced Manufacturing
• Demand Planning

• Project Management
• Resource Allocation
• Job Costing
• OpenAir

• SuitePeople
• Premier Payroll Service

• SuiteCommerce Standard
• SuiteCommerce Advanced
• SuiteCommerce InStore
• Advanced Order Management

When it comes to NetSuite E-commerce software, NetSuite offers three natively integrated solutions. NetSuite’s E-commerce products are always used in conjunction with NetSuite ERP and not deployed as a stand alone solution like Shopify or Magento. NetSuite Ecommerce products do not require any sort of connector or development effort to tie back to your ERP and CRM.

Here’s a brief overview of the solutions:

The oldest, most widely deployed NetSuite E-commerce product is referred to as SuiteCommerce Site Builder.  Site Builder has been around for well over 10 years and is rarely sold or implemented today. Site Builder was developed before the rise of mobile devices & shopping and is not natively responsive or SEO friendly, like most modern E-commerce sites today. Site Builder is technically available for licensing but generally not sold and recommended for new users wishing to deploy a SuiteCommerce solution.

The technology developed to replace Site Builder, known as SuiteCommerce Standard, is a templated, SaaS based, E-commerce solution that is natively integrated with NetSuite ERP & CRM.  With SuiteCommerce Standard, customers are offered a Shopify like user experience however it’s intentionally limited when it comes to adding unique features and customizations. In return, this simplified solution offers a productized E-commerce offering, providing seamless updates much like you are accustomed to with NetSuite CRM and ERP. SuiteCommerce Standard is a good fit for companies with a fairly simplistic product catalog and straightforward checkout process.

SuiteCommerce Advanced, developed in 2013, is an enterprise grade E-commerce platform designed to enable customers to sell via multiple channels, brands, languages, currencies with a single platform. With SuiteCommerce Advanced the sky is the limit in terms of customization ability and is designed with SEO in mind. SuiteCommerce Advanced makes sense for companies that have more complexity within their product catalog, have high transaction volumes and/or require customizations to their shopping/checkout experience.

OpenAir is NetSuite’s cloud-based Professional Service Automation (PSA) offering that has been part of NetSuite’s product portfolio since 2008 through acquisition.

OpenAir provides project accounting, project and resource management along with time and expense management capabilities.

While it seamlessly integrates with NetSuite, OpenAir also has pre-built connectors for SAP, Oracle, Salesforce and Microsoft Project.

Since the OpenAir offering is highly customizable from a licensing perspective its best to talk with a OpenAir licensing specialist to determine what your requirements are to get to a realistic picture of what your OpenAir price estimate might be.

To learn more about NetSuite OpenAir Pricing go here.

Like NetSuite OpenAir, NetSuite SRP is cloud-based Project Management Software. The main distinctions between OpenAir and NetSuite SRP are the following.

NetSuite Service Resource Planning (SRP) product consist of the following modules:

• Project Management*
• Resource Allocation
• Job Costing

*This advanced module has more features/functionality than the basic offering that comes with the suite.

All three modules may be independently subscribed to, however when combined together they are collectively referred to as NetSuite SRP.

NetSuite SRP is 100% native NetSuite built on the NetSuite SuiteCloud platform.  Whereas, NetSuite OpenAir was part of an acquisition therefore it does have a completely different look and feel compare to NetSuite SRP.

Further, OpenAir does require a connector to integrate with NetSuite. This is one of the few NetSuite products that does require a connector and does not natively reside within NetSuite.

NetSuite OpenAir is designed with larger professional services organizations in mind and can connect with any ERP system, whereas NetSuite SRP is geared towards companies with less robust professional service automation needs and desires to run the entire business off a single platform.

It really boils down to “best of breed” vs a “suite” IT strategy. Both can be a great option in the right environment.

In the early days NetSuite software was primarily targeting the smaller end of the SMB market.

In fact, they use to offer a software package referred to as “Oracle Small Business Suite” by NetSuite.

It was packaged and sold to smaller companies with limited budgets and needs.

Between 2012 – 2016 NetSuite’s product maturity and growth propelled them upmarket and they landed some really large customers, such as GoPro, Williams-Sonoma, and Shaw Industries to name a few, and the marketplace took notice.

In fact, back then it wasn’t uncommon to hear small businesses leaders state that NetSuite was getting too expensive and that they seemed better aligned to serve large organizations.

This sentiment encouraged many SMB’s to consider cheaper alternatives.

The acquisition announcement from Oracle in the summer of 2016 increased this concern.

However, during the last few years, this inclination has significantly changed, largely due to the Oracle acquisition.

Oracle stated from the very beginning that NetSuite would be positioned and sold to organizations with less than 1,000 users and that the Oracle Cloud ERP products would be aimed at the enterprise space.

To further support this message, NetSuite has once again packaged its software for emerging companies that have outgrown QuickBooks with multiple “starter” packages that have highly attractive entry-level price points and options.

Learn how much you should budget for your NetSuite initiative.

START ESTIMATE

When it comes to NetSuite implementation cost, it’s a more difficult question to answer, than say, compared to answering the NetSuite pricing  related questions because each customer is a bit different. But since you’ve read this far, let’s get into it!

Most NetSuite implementation projects will begin with a discovery and analysis phase of the project. The length, depth and method around how these are conducted will vary to some degree among the different NetSuite partners.

The intent with this initial phase is to allow the implementation team to become increasingly familiar with you, the client, your business model, current business processes and identify potential gaps.

This information is documented and packaged and referred to as a Business Requirement Document, also known as a BRD. The BRD will be utilized to determine how NetSuite will be configured as well as outlines gaps and solutions. Think of the BRD as a blueprint for your ERP initiative.

The discovery and analysis phase is critical to ensuring a successful ERP project and one that should address both your initial and future needs. Be sure to give it the necessary time to maximize your NetSuite investment and avoid costly surprises down the road.

PRO TIP
Expect a consulting firm to spend roughly 50-150 hours of the project dedicated to gathering and documenting requirements for your NetSuite ERP implementation. Most NetSuite Partners will bill between $150 – $250 per hour for NetSuite consulting.

Warning: You can pay now for a high quality discovery and analysis or pay later due to “missed” requirements and costly change orders.

After the completion and acceptance of the BRD, now the real work begins! Depending upon the implementation methodology and timeline objectives you should expect ~2-3 configuration sessions per week for a duration of ~10 – 14 weeks followed by user acceptance testing (UAT) in preparation for go-live.

The number of sessions and length is largely dependent upon the size of scope, desired go-live objectives and resource availability.

Level of Effort: The configuration and deployment stage will generally account for two-thirds of the entire project.  The other third comes from the discovery and analysis phase.  So assuming your discovery & analysis engagement took 100 hours to complete than you can expect your configuration phase to take another 200 hours, for a 300 hour NetSuite implementation.

PRO TIP
If you’re working with a limited budget or have a fairly simple scope, ask your NetSuite partner if they have a implementation methodology to support a “self implementation” or “turnkey” approach to implementing NetSuite. This could save your company a lot of money on professional services expenses!

NetSuite customizations are necessary to automate processes and/or address gaps with native NetSuite functionality.  When it comes to NetSuite customizations, you have two options, SuiteScripting and SuiteFlow.

SuiteScripting allows developers to create flexible business logic within NetSuite tailored to a particular business need.  SuiteScripting can be used to automate business processes or write entirely new applications.

SuiteFlow enables non-technical users to set up workflows with a point-and-click, drag-and-drop interface. No coding involved!

PRO TIP
I’d recommend setting aside an additional $0-10k budget for customizations. NetSuite is robust enough for most organizations however there may be situations where GAPs are identified and require customization

NetSuite was originally developed with extensibility in mind and has continued to heavily invest in the SuiteCloud platform and ecosystem making it easy for customers to connect NetSuite with other leading applications.

Below are the three options customers have available for connecting NetSuite with other applications.

You can develop your own custom integration through SuiteTalk (Web Services). SuiteTalk is an integration tool that allows NetSuite to be seamlessly integrated with other legacy applications and Web 2.0 tools (e.g. maps, blogs, instant messaging) into your business process. SuiteTalk gives you the ability to use any programming language or platform that supports the SOAP standard in order to generate NetSuite business objects in that language, such as Microsoft.NET or Java.

SuiteTalk is available with your NetSuite subscription.  The only cost associated with this type of integration is the labor hours associated with building and maintaining the integration.

A NetSuite Connector is essentially an application that allows you to connect NetSuite with another application in a “plug & play” fashion, no coding necessary.  Connectors are available through several vendors, Celigo and FarApp are the most commonly used connectors in the NetSuite ecosystem today.  Connectors generally start in the couple hundred bucks per month range and go up from there pending integration needs.

Integration Platform as a Service (iPaaS) is the final way you can integration NetSuite with other applications.  An iPaaS solution will generally cost the most but is also the most robust.  iPaaS solutions in the NetSuite space include Dell Boomi, Celigo and Jitterbit.  Each of these solutions generally start in the several hundred per month to couple thousand per month depending upon the integration needs of the client.

Once you factor in all aspects of your NetSuite implementation (discovery, analysis, configuration, deployment, data migration, integration, customization and training) the majority of companies will spend between $25-75k on their NetSuite implementation.

Did you know that NetSuite technical support is included for free with your NetSuite license subscription?

Customers requiring 24/7 access to NetSuite Support will want to upgrade to NetSuite Premium Support, which is based on your software contract value.

A common alternative to subscribing to NetSuite Premium Support is to leverage your NetSuite Solution Provider for on-going NetSuite support & optimization needs.

Generally speaking, your NetSuite partner will have the most context regarding your instance, its customizations, system integrations and your business needs and can be a reliable point of continuity when needs arise.

NetSuite Solution Providers like Cumula 3 Group are able to provide a variety of financing options. Whether you’re looking to defer payments for a period of time or lock in a predictable monthly payment option, there’s a good chance we/our financial partners can accommodate your request. Depending upon your organizations credit history there’s also the ability to not only finance your ERP license purchase but also finance your professional service fees too! That’s right, both NetSuite licenses and professional services bundled together in a predictable monthly payment. Curious to see what you’re financing options are? What your monthly payment might look like? Find out now by clicking on the calculator below.

A fairly new offering in the world of NetSuite is SuiteSuccess. SuiteSuccess is both a NetSuite implementation methodology as well as a productized offering. NetSuite SuiteSuccess accounts come pre-loaded with reports, KPIs and dashboards tailored for a specific industry. The goal with a SuiteSuccess implementation is to take a company live with NetSuite within 100 days.

Your NetSuite Solution Provider can help you determine whether or not you are a good fit for the SuiteSuccess license and implementation methodology. Generally speaking, clients that have integration needs, require 3rd party offerings or require customizations are not ideally suited for SuiteSuccess given the limited runway for scope. SuiteSuccess is great for companies with a really limited go-live window and a limited scope.

Like other SaaS applications, NetSuite is completely subscription based. The subscription can be as short as 12 months or much longer; many companies find 5 years to be ideal. A longer subscription term tends to make sense for companies that desire future price predictability. By working with an experienced NetSuite Solution Provider we will show you ways to keep your subscription cost predictable and stable, well beyond your initial term.

PRO TIP
For maximum price protection & predictability we suggest a 5 year contract term with a corresponding period of time that puts limits on price increases at the time of your contract renewal.

NetSuite offers the option for customers to license a Sandbox account for an additional fee.This is based upon a percentage of Annual Contract Value and is available in 12 month increments.A Sandbox account is an identical copy of your production environment and is ideal for clients or consultants who wish to develop customizations (SuiteScript & SuiteFlow) in an environment that will not impact day-to-day operations. For new NetSuite customers that plan to deploy NetSuite in a single phase with no customizations or integrations a Sandbox subscription probably does not make sense.

NetSuite is always deployed in in the cloud and maintained by NetSuite in a multi-tenant environment. It’s exactly this model that allows you to tap into world-class ERP software at an incredible price point and speed to deployment. That being said, some larger companies require greater control and scalability which may make them an ideal fit for NetSuite’s premium service tiers.

NetSuite offers three different service tiers (Tier 3, Tier 2, Tier 1 and Tier 1+/0). These tiers offers customers their own dedicated database storage instance as well as greater flexibility of NetSuite update release dates. In conjunction with data center premium tiers NetSuite also offers SuiteCloud Plus licensing for high-traffic customers or customers with high transaction volumes. SuiteCloud Plus increases the number of queues available for scheduled scripts, queues and threads available for CSV import jobs and concurrent threads for web services.

NetSuite subscriptions are billed annually with due upon receipt terms. There may be situations where funding the full subscription in advance makes sense whether taking advantage of pricing concessions or in the event of a lease. Like most things, the subscription terms and billing arrangements are open to negotiation. For customers looking to preserve cash, Oracle Financing and other leasing companies can package NetSuite licenses and professional services into a predictable monthly payment. This has proven to be a great option for fast growth, bootstrapped clients needing to graduate from a QuickBooks type solution without a significant cash investment on the front end. Lastly, on billing, NetSuite is always on Oracle NetSuite paper.  If you decide to license through a NetSuite Solution Provider your licensing arrangement is still directly with the software vendor.

PRO TIP
Timing is everything when negotiating a new software contract. There are specific times during the year where a software purchase might be more advantageous. A NetSuite Solution Provider can help you navigate the ins and outs of timing to get you the most attractive software subscription terms & concessions, after all it’s what we do for a living!

Q: Do you or NetSuite have a NetSuite Pricing Matrix with all the available options and associated cost?
A: Well, yes and no.  As a NetSuite Solution Provider we have access to a licensing matrix & NetSuite’s price list but these are not for general public consumption, there’s so many options with NetSuite licensing it would most likely overwhelm a potential buyer and create more questions than answers.

Q: Is NetSuite more expensive since the Oracle acquisition? If so, what’s changed?
A: NetSuite pricing in 2020 versus NetSuite pricing 2016 and prior years is very similar. If anything, customers have seen a reduction in cost in particular areas. Also, NetSuite is now offering some unique pricing packages for emerging businesses that have outgrown QuickBooks and other entry-level accounting packages.

Q: Does NetSuite offer special pricing for small business & startups?
A: Yes, NetSuite pricing for small business is referred to as “NetSuite Limited Edition” or “NetSuite Starter Editions”. Each of these programs have different requirements and restrictions.

Q: Can I license just NetSuite ERP (Financial Management) and forego NetSuite CRM?
A: Yes, you can choose to license just NetSuite ERP and not license CRM.

Q: Can I license just NetSuite CRM and forego NetSuite ERP?
A: Yes, you can choose to license just NetSuite CRM and layer on NetSuite ERP down the road.

Q: Whats the difference between “regular” NetSuite and NetSuite OneWorld pricing?
A: NetSuite OneWorld is necessary for companies that plan to run multiple legal entities in NetSuite. To access the OneWorld features you are required to license the OneWorld module. OneWorld licensing can be a little tricky it’s best to discuss your options with a Solution Provider or click on the calculator button to configure your estimate.

Q: How much does NetSuite cost per user?
A: To determine your actual per use cost, you’d need to add up the entire cost of the suite, your advanced modules and user licenses and divide the total by the number of users in your environment to come up with this exact figure.

Q: How much does NetSuite cost per month?
A: To determine your cost per month you would need to first determine your suite type, necessary advanced modules, support package and user types and quantity.

Q: Does NetSuite offer a free software trial? We want to make sure it’s a good fit for our users and business model.
A: Cumula 3 Group does offer free NetSuite trial accounts for businesses interested in learning more about NetSuite.  You can start your free NetSuite trial account right now, right here.

Licensing NetSuite is no small decision for most businesses.

If you’re still debating whether NetSuite is right for you I’d highly encourage you to talk with a reputable 5-Star NetSuite Solution Provider, prior to engaging directly with NetSuite to understand all your options.

Knowing the playing field is key in any industry and mistakes can be costly!

NetSuite Solution Providers, like Cumula 3 Group, can assist with your NetSuite ERP evaluation and will work with you and NetSuite to help you negotiate an amazing NetSuite license contract that meets your needs, budget and timeline.