NetSuite Software is known for its strong financial capabilities and addon modules for Inventory management, Project management, Revenue recognition, and Manufacturing capabilities.

Oracle NetSuite has always been a cloud only system since its inception in 1998. The recent acquisition of NetSuite by Oracle has even further enabled it to develop functionalities that help growing businesses take advantage of its functionalities.

This article focuses on answering all your questions related to NetSuite ERP pricing. You can refer to our article on the total cost of ownership to understand what it will cost you to run on NetSuite.

How is NetSuite Priced?

NetSuite is priced as an annual subscription and the pricing depends on the number of users you buy and the modules you need.

Although NetSuite provides the prices on a monthly basis the payment pricing schedule for NetSuite is on an annual subscription basis.

Calculate Your NetSuite licensing Price Now

To calculate NetSuite licensing Price, you can use our pricing calculator or you can simply use the below formula:

NetSuite Pricing = (Base module price + User price + Advanced module price) – Discount

NetSuite Pricing Calculator

What is NetSuite pricing model?

For many businesses, choosing an ERP system is like choosing a car. There are so many options, and each has its pros and cons. This is partly because the processes of each company are different, and partly because technology is always changing.

It is important to understand the basics of how Oracle NetSuite pricing works, including key terminology and the different options you have.

Oracle NetSuite license fees are very modular and depend on the user count and the specific functions (NetSuite modules) you want to have in the system.

This is unlike any other application where you are forced to buy all the features or a particular ERP edition.

The modularity of NetSuite licensing makes it very easy to start really small and then scale with additional functionality or user licenses as your company grows.

Factors to consider for determining NetSuite Cost:

While you budget for the cost of your NetSuite ERP deployment, you should consider the below 4 factors

1. NetSuite License price: This is the price you pay directly to Oracle NetSuite to utilize their product. The cost of NetSuite License is subscription model-based yearly recurring and has to be budgeted for each year you plan to use the system. While you renew your licenses at the end of the contract term, there will be a certain price increase which is agreed upon while you sign your Software subscription Agreement (SSA) during the initial term.
2. NetSuite implementation cost: This is a cost you will pay to your implementation partner for their professional services to configure the system as per your business processes. Your implementation partner will also do your data migration and train your users on how best the configured system can be utilized. It is important that the partner you work with follows proper implementation methodology and deployment model to achieve higher success for adoption.
3. NetSuite customization and integration cost: A lot of times, Oracle NetSuite partners will customize the NetSuite system to meet your business needs. This might include creating custom records and automating them using code. There might also be a need to integrate NetSuite with a few of your 3rd party business systems using API’s. These integration services need very specialized skills and would cost you additional money.
4. NetSuite Post-implementation support cost: Once you implement the system, you would need someone to administer the system and ensure all the processes are running smoothly and your users are aware of how to use each function the correct way. You may decide to train a resource internally or hire a partner to support you for this activity. You might also want to enhance the system to achieve further automation and this adds to your costs.

You can check our Netsuite price calculator for getting the exact NetSuite Cost.

What are the licensing options for NetSuite?

Generally, you would find 2 approaches for user pricing of any software-as-a-service(SaaS) application: Named user and concurrent user. When you specifically talk of Oracle NetSuite they work on a named user pricing model.

The cost of a cloud based ERP solution is usually quoted in two ways.

The first is the named user price, which is the fee paid per person during the term of the agreement. How many users are accessing the system at the same time is not a consideration here as every user needs to have a paid license to access the system.

The second is the concurrent user price, which is the fee paid per user who are accessing the ERP system at the same time.

Named user pricing: Named user pricing is, as the name suggests, a pricing model that bases the monthly price of a software package on the number of users who will be utilizing the software.

This is in contrast to the per-seat pricing model, which is based on the number of licenses, or seats, that a company purchases. So in a named user arrangement, you will have to pay a cost per user who accesses the system.

Concurrent user pricing: Concurrent users are how many people, or “concurrent users,” you can have using your cloud solution at a given time.

NetSuite licensing costs can be broken down into three price components. We categorize NetSuite pricing as below:

• NetSuite Suite Cost: The foundation of NetSuite licensing is the cost of the Suite (Also known as the base price) which includes NetSuite Platform, Basic ERP features, Database cost, Desaster recovery cost, and the Infrastructure cost. Regardless of how many users you want to purchase, this licensing component is something you will always have to pay for. The cost of users and additional modules is always in addition to this basic cost you will have to pay.
• NetSuite User cost: Like any other software-as-a-service (SaaS)product Oracle NetSuite charges a per-user cost. This cost is incremental, as you grow and add additional user licenses to the ERP system. NetSuite categories the type of users based on the following user role’s:

1. 1. Full user Access License: This user login license will by default have access to all the functionality of the system. He can be an Administrator or an inventory manager or a project manager. The rights are stripped down to the necessary requirements while user role’s are created during the implementation process. You will need to buy at least one full access user to get started with. So if we have to break it down the minimum cost to procure a NetSuite subscription is the base price plus the cost of at least one user license. Rest all is something you can add-on when needed.
   2. Customer access license: These are licenses that are given by NetSuite for your customers to access your NetSuite system. Generally, Customer logins are free of cost but there is an advanced version of customer login which NetSuite charges for. In the basic version, Customers can access the Oracle NetSuite system to have a basic dashboard reporting and are able to place orders to your company for your product or service, see their account payables, can raise support tickets, or can manage their customer profile information. The advanced version which is paid, allows customers to perform payments from the login itself and provides a much-improvised user experience in terms of dashboard reports and look and feel.
   3. Vendor access License: NetSuite provides Vendor licenses free of cost. These are generally read-only access where vendors can view the orders placed and the status of their bills raised to your company. They can also see their accounts receivables. In case you purchase “Procurement management cloud services” which is one of NetSuite’s advanced models, the vendor login allows your vendors to bid for the vendor bids opened by your company. Many companies use this login to provide transparency to their vendors.
   4. Partner access License: Your partners are generally your extended sales arms. NetSuite provides a partner login license where your partners can log in and enter the leads and opportunities they are working on. This helps your company with real-time dashboard reporting, pipeline of your partners and also helps manage partner conflicts. NetSuite’s Partner login becomes a mini CRM for your partners to manage, leaders, deals, estimates, activities, and other marketing campaigns they are working on giving you complete visibility on your sales ecosystem.
   5. Employee access licenses (ESS): With NetSuite, you also have an option to purchase Employee access licenses. These are non-power users who can perform basic tasks like, entering timesheet data, raise purchase requisitions, create support tickets, and manage their calendar and tasks. These logins cost 25% of the full access licenses.

• NetSuite Module Cost: The final cost which you will have to keep in mind is the add-on module cost of NetSuite. This is the price you pay for the additional functionality which you need for your industry-specific requirement. NetSuite module cost is a flat rate and does not increase with the number of users you purchase. Once you have the module it can be used by all the full access user licenses who are using the system.

What is the NetSuite eCommerce pricing model?

NetSuite eCommerce is just like any add-on to NetSuite. You can either buy NetSuite Site builder or SuiteCommerce Standard (This is the basic version) or buy SuiteCommerce advanced which comes with greater flexibility for your eCommerce operations.

This license cost will be in addition to the ERP cost you have to pay.

Do partners or NetSuite have a NetSuite pricing matrix with all the available options and associated costs?

Solution provider partners have access to NetSuite pricing matrix and can help you with the available options and associated costs. You can also work with an Alliance partner who further coordinates with NetSuite ERP sales rep to get you the right information.

What is the cost of NetSuite Sandbox?

NetSuite sandbox is priced at 20% of the license cost you pay for NetSuite licenses for a yearly subscription. NetSuite Sandbox can be purchased for one single month, a quarter, half-year, or for the whole year.

How can you save money on NetSuite licensing?

There are many ways you can save money on NetSuite licensing.

While you plan to purchase NetSuite licenses, it is your expectation that you get some discounts on the licenses you buy. NetSuite partners and NetSuite direct sales organization works closely with you to understand your expectations and provide a detailed pricing plan to reach a mutually agreeable discount.

You must note here that the NetSuite list price is global and there are discounts given region-wise. So if you are in an emerging market, the discount levels might be a bit higher than if you purchase NetSuite from a matured market.

The best thing about NetSuite discounting is that the discounts and payment terms that are agreed upon while you do your first license agreement are honored while you renew your subscription, purchase additional users or new modules to meet your growing needs.

Oracle NetSuite ERP software has a subscription based pricing model which means the cost of NetSuite is an operational expenditure for you. NetSuite provides good discounts on its list price if you negotiate right.

Optimizing your cost on NetSuite Licence pricing:

Purchase industry-specific NetSuite edition: As we know NetSuite is modular in nature and you can add modules based on the functionality you need. NetSuite pricing strategy also allows you to select specific industry editions which helps you to reduce the cost of purchasing individual modules.

Let us look at it with an example:

Suppose you are from a distribution industry. Your NetSuite ERP’s license configuration would look like this if you choose the independent modules.

You will pay for the base cost + additional modules fees + User license fees :

• NetSuite Mid Market Edition (Base fee for the generic suite)

This will include Salesforce automation with quota and order management, Marketing Automation with campaigns with 12,000 campaign emails per year, Customer service management, Basic procurement management, Accounting and basic budgeting, Basic inventory management, Expense reporting, Advance, shipping, Business Intelligence with Real-time dashboards with key business metrics, Productivity tools including contacts, calendar, events, 5 self-service users, 100 GB of file storage and platform to perform necessary customizations and integrations.

You also get basic NetSuite Support as default but if you want NetSuite premium support you will have to pay an additional fee.

• NetSuite Inventory management cloud services (Add-on Module)

This Inventory management add-on module gives you additional features to your basic inventory management where you can use Barcode, Serial numbers, Batch numbers with expiry, Manage landed cost, and perform warranty management.

• NetSuite Demand planning cloud services (Add-on Module)

The Demand planning module helps you manage your inventory demand and supply plans and gives you the ability to perform Just In Time (JIT) operations.

• Learning Cloud support pass (Optional self-learning pass)

This is a learning pass where you have pre-recorded videos of how to use NetSuite. Depending on your business size you can use these videos to learn NetSuite features and how the administration can be done

• NetSuite Full Access users (Users you want to purchase)

These are simply the users you need who will access the system.

Cost Saving version of NetSuite licensing:

Instead of the above configuration if you go ahead with an industry-specific edition which is “NetSuite Wholesale Distribution Cloud Services” in this example, you would get the same configuration but at a lower cost.

Similar industry-specific editions of NetSuite are available for nearly every industry out there. You can reach out to the partner you are dealing with to optimize your license bill of material or simply connect with us and we would be happy to help.

The most popular Industry-specific editions are:

• NetSuite Wholesale Distribution Edition
• NetSuite Services Edition or Service resource planning (NetSuite SRP)
• NetSuite Manufacturing Edition
• NetSuite Retail Edition

Involve an Oracle NetSuite Partner: I strongly recommend working with a NetSuite partner to understanding which modules you need and which NetSuite modules you can purchase later.

NetSuite solution provider partners also negotiate with NetSuite on your behalf to get you the best discounts possible. Their earlier experience dealing with NetSuite defiantly helps get you the best discounts possible.

You should also be aware that you should only work with one partner and working with multiple partners puts your credibility at risk. NetSuite will not give you discounts or refrain from negotiating if you are dealing with multiple partners.

So be sure to do your research well before you engage with any partner and stick to them throughout your procurement journey.

How can you be sure you are getting the most value from your NetSuite license subscription?

One of the best way to make sure you are getting the most value from your subscription is to buy only those modules you really need to start with.

That way you postpone the purchase of unwanted licenses on day one and only buy what is needed.

You can always phase out the project in multiple phases so that there is a proper adoption curve in your organization and your users are not overwhelmed.

How does the free NetSuite trial account work?

In some regions, NetSuite provides a free trial of 14 days. these are pre-canned accounts that can be used to take a taste of the software.

I would not recommend you judge the application from the free trial accounts as these accounts come with some fixed functionality and are not as per your organizational needs.

The best way to understand the capabilities of Oracle NetSute ERP is to ask a partner to demonstrate the product.

If you still feel like playing around with NetSuite’s free trial account, Reach out to us and we will be happy to Assist.

Why is there an additional pricing structure for NetSuite OneWorld?

NetSuite offers a unique module called NetSuite Oneworld which allows you to create and manage multiple subsidiaries under a single ERP instance allowing you to do multi-subsidiary management including realtime consolidation, inter-company transactions, and elimination. This is advanced functionality that lacks in multiple ERP’s and is not needed by every customer.

Keeping this in mind, NetSuite categorizes this functionality as an Add-on module and charges only if it is needed by your organization.

Can you license just NetSuite CRM and forego NetSuite ERP?

you can license just the CRM software or Just the ERP functionality of NetSuite depending on your needs.

Oracle NetSuite comes mainly in 3 versions

• Oracle NetSuite ERP: This is a complete NetSuite package of CRM and ERP giving you a unified system to manage your entire business. Getting the salesforce automation and back office ERP into one system becomes a great tool for your business giving you complete visibility of your business.
• Oracle NetSuite Financials only: This includes only the ERP back-office operations. Features like finance, invoice, supply chain management, forecasting, financials, Budgeting, Inventory management, demand planning, project management and more are part of this version.
• Oracle NetSuite CRM: This includes only front office operations which has, Salesforce Automation, Ticket management, and Marketing management as features.

How do you get NetSuite certified?

NetSuite provides multiple levels of certifications and you can apply for them on NetSuite’s website. You can buy a training package from NetSuite and then answer the exam which will help you get the certification.

I would suggest you get a good idea of the NetSuite platform before you plan to do the implementation yourself.

Cost of NetSuite license – direct vs NetSuite partner

NetSuite licenses are either sold directly by Oracle NetSuite sales reps or through a partner channel. From a customer perspective, it really does not impact how much it will cost you if you buy from either. As both the sales channel of NetSuite (NetSuite Direct team and Channel partner team) can provide the same level of discounts.

What matters more is your comfort level in dealing with 2 parties. Your NetSuite ERP implementation will mostly be done by a partner and If you buy licenses from them you get a single window for all your queries rather than managing 2 separate vendors for the same application.

What is a NetSuite partner and why work with one?

NetSuite partner is a partner to Oracle NetSuite who serves as an extended arm to sell as well as provide professional services.

The advantage you get with working closely with a channel partner is that they are involved right at the initial stages of the sales cycle to understand your requirements and map them across the application.

Working with a NetSuite partner helps you with:

1. Select the right modules for you to go with allowing you to optimize your license cost.
2. Ensure your business process mapping is done right with NetSuite.
3. Get a single point of contact for licenses as well as implementation project, support and training.

What size companies use NetSuite?

I have personally implemented NetSuite for a company as small as a single user to companies that has more than 2,000 users.

NetSuite platform being on the cloud is very scalable and it really does not matter how big or small your company is.

What matters is the use case of your company. It is always better to reach out to a partner and discuss your use case to understand if NetSuite can be good for your organization.

How much does NetSuite cost for a small business?

Generally, small businesses use NetSuite for financial accounting and inventory management. As the business grows organizations start utilizing additional functionalities. NetSuite is a step-up application to Sage Intacct and there are plenty of case studies of businesses moving to NetSuite to meet their growing automation needs.

NetSuite provides NetSuite account for small business under its Limited edition offering. The limited edition is NetSuite pricing for small business to meet their budget.

The cost of NetSuite implementation for small business is between $12,000 to $25,000.

Is NetSuite good for small business?

NetSuite becomes a very good fit for small business as it is a complete cloud based ERP platform and gives you the flexibility to scale up or down based on your needs without incurring any additional cost.

How much does a NetSuite implementation cost?

As I mentioned earlier there are 3 components (Implementation, Customisation, integration, and support) to professional services which a NetSuite Partner provides.

Buying licenses is one part of your ERP journey. Implementing NetSuite with the right processes in place that suit your company is very important.

Partners generally charge you based on the modules you want to implement and the customizations or integrations which are needed to be in place.

Below table gives you a tentative implementation cost a NetSuite partner would charge you for your implementation.

 

 

It is important that you and your management team understand that implementing an ERP is a joint effort between your organization and the partner company.

A NetSuite partner will be specialized in configuring and customizing NetSuite while they would need your team to support understand your business processes. The more you are in sync with the implementation partner you will be able to achieve a higher return on investment and lower total cost of ownership. It is important you select the right partner for your NetSuite implementation with who you feel comfortable.

Let us now look at how the partner calculates the cost for their services:

Whether it is Implementation cost or cost for integration or customization, for a partner it is always the cost of resources plus his profit margins.

Sometimes there are situations where the cost for certain services is higher (generally integration services cost more) as the risk of failure is high and you would need a senior resource to perform the activity.

This is the reason many companies prefer sourcing their projects to an Indian Netsuite Partner. Doing so helps them reduce their overall implementation cost by still maintaining a high quality of implementation.

Cost of NetSuite implementation – direct vs NetSuite partner

Like any partner, Oracle NetSuite also provides you with professional services. The cost of these services is based on the country you are in. While you purchase NetSuite licenses, you can either opt for NetSuite direct professional services or you can work with a partner for their services.

Why should you work with a NetSuite solution provider?

• Partner services are much affordable than Direct NetSuite.
• Partner goes the extra mile to gather business requirement and customize NetSuite ERP to automate your business processes.
• Partners would normally have good industry experienced NetSuite consultant’s and NetSuite integration capability with other software you use.
• Partners provide post implementation services

How can you save money on NetSuite Implementation?

The SuiteSuccess approach: The other option which can save you money is to go with NetSuite SuiteSuccess. This is the near preconfigured edition where processes and pre-built dashboards are readily available based on industry experience NetSuite has.

You will find built-in Business Intelligence and financial reports which might be enough to monitor your financial performance. This can save you some money in NetSuite Softwares development efforts.

The challenge with SuiteSuccess is that you will have to adapt to NetSuite defined processes and larger change management is required internally.

If you are a startup or a young company and you want to streamline your processes based on industry standards, SuiteSuccess might be a great option. But if you are a large company or have a complex business model, you should prefer the standard approach towards NetSuite Enterprise Resource Planning.

Prefer a Stairway approach: If your company is deploying an ERP for the first time you might want to consider a stairway approach for your initial implementation. A stairway approach allows you to implement the basics and then slowly adopt additional features around the system as your users get comfortable using the system.

You can start with one department and then buy additional user licenses and modules to cover other departments of your organization. This ensures that there is better adoption of NetSuite ERP across the organization and you see a reduced cost and higher utilization.

Prefer remote NetSuite implementation: Oracle NetSuite ERP is a cloud based system and can be implemented remotely. You do not need consultants in your office who get billed to you. You can go with a cost saving approach by preferring a remote implementation. The price of implementation is really reduced with this approach.

The best way to achieve this is to find a reliable partner in India having experienced ERP consultants (The resource cost are lower with good quality) even if you are in other parts of the world and get the implementation executed.

What are the primary features and advantages of NetSuite?

NetSuite is a single platform that combines functions, such as financials, advanced revenue management fixed asset management, Professional Services Automation (PSA), human capital management (HCM), enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), expense report, and business intelligence (BI) to provide real-time visibility in a single, integrated package. While there are a number of processes that NetSuite Platform can fulfill on its own, it is also designed to work with other third-party tools. This gives flexibility for NetSuite customers to integrate their favorite applications with NetSuite.

NetSuite ERP Explained

 

Depending on your company size, NetSuite gives you 3 pricing options when it comes to choosing an edition. I have explained them below:

• NetSuite Limited Edition: Used for startups or smaller companies that would not need more than 10 full access users for their operations.
• NetSuite Mid-Market Edition: Used for mid-sized companies that would require more than 10 full access users for their operations.
• NetSuite Enterprise Edition: Used for companies who need more than 1000 full access users for their operations. Generally, these companies will have high transaction volume and utilize more infrastructure resources.

The difference between these 3 editions is very thin apart from a few restrictions on the add-on modules you can purchase and the number of users allowed to access the system.

NetSuite allows you to scale/ migrate to the higher edition at any point in time if you feel the need to have those features or additional users.

So as your business grows you can scale the application functionality without having to switch to new software.

To give you an idea of how NetSuite categorizes its add-on modules I have listed below a few frequently used modules Industry-wise. In this article, I have not covered all the industries but broadly categorized them into Distribution, Manufacturing, and Services.

NetSuite modules for Wholesale and Distribution Companies

• Inventory management cloud services
• Demand planning cloud services
• Procurement management cloud services
• Financial Management cloud services
• Warehouse Management (WMS)

NetSuite Modules for Manufacturing Companies

• Inventory management cloud services
• Demand planning cloud services
• Procurement management cloud services
• Work order and Assembly cloud services
• WIP and Routing cloud services
• Financial management cloud services
• Warehouse Management (WMS)

NetSuite Modules for Services and Software Companies

• Project management cloud services
• Job costing cloud services
• Resource allocation cloud services
• Financial management cloud services
• NetSuite advanced revenue recognition and revenue management(ARM)

Although NetSuite has plenty of modules, the ones listed above are the ones that are mostly used by companies.

Apart from this if you are an enterprise that has multiple subsidiaries (legal entity) you would need the NetSuite OneWorld module which helps you in group-level consolidation of your financials while allowing you to do intercompany transactions and eliminations. Having such a system helps you to fuel your company’s growth.

Each additional module is priced independently and I would suggest you reach out to one of the NetSuite partners to get the exact details of the module you would need and the pricing for those modules in your country.

NetSuite also provides discounts on its list price and you can reach out to us to understand how best we can optimize the License pricing for your operations.

I recommend closely working with partners as they are the ones who would implement the system and would recommend the right modules required to run your operations on NetSuite’s business management software.

Aarialife’s Partnership with NetSuite

Aarialife is a digital transformation and technology service company focused on providing NetSuite ERP solutions to its customers. With offices in multiple countries, Aarialife is an alliance partner to NetSuite in the United Arab Emirates (UAE) and a NetSuite solution provider partner in India, North America, and Canada. Aarialife’s NetSuite expert team helps customers like you to deploy NetSuite with the right project management practices, consulting services, and real-time project monitoring. Aarialife has done multiple successful implementations across the globe and has a pool of human resources with specialized skills.