NetSuite Pricing Guide: How Much Does Oracle NetSuite ERP Cost?

Welcome to the most comprehensive Oracle NetSuite pricing and 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 essence: If you're seeking a one-stop online resource to solve all your NetSuite pricing-related inquiries, consider this guide your go-to reference point. Make sure to bookmark it for future use, as it's packed with valuable insights that can save you time and money.

Don't have time to read, watch the short explainer video instead.

Understanding NetSuite's Pricing Structure

NetSuite's license cost starts with the concept of "a suite". The type of suite you will need to license is largely determined by the size of your company and/or the type of functionality you will require.

In NetSuite vernacular, the suites are known as NetSuite Starter/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 is 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, and the transition is seamless.

With NetSuite you never have to worry about a system migration once you've outgrown your current edition, you just simply adjust your subscription to the proper edition, and that's it. 

Take a look at the NetSuite edition types below:

Oracle NetSuite Pricing Per User

When considering software licenses for end-users, most ERP vendors offer either a concurrent licensing model or a named user model.

NetSuite opts for the "named user" model for licensing its end-users, establishing a clear and traceable account of each individual's usage.

Specific user licenses are necessary for roles including but not limited to: Controllers, Sales Managers, Directors of Operations, and Customer Service Representatives. In essence, any individual frequently transacting in the system would benefit from a full user license.

Moreover, if detailed tracking of all system changes and transactions by user is a requisite, a dedicated NetSuite license per user is more advantageous than sharing licenses among groups. This ensures transparency and accountability in the system's operation.

On the other hand, NetSuite also offers specific licenses for those who perform more limited tasks within the system. These "Self-Service Users" may enter/view/track time entry against projects, accrued PTO, expense reports, or initiate a purchase requisition.

An often-asked question is - what about users who require read-only access to NetSuite data?

It's crucial to know that NetSuite data can be exported into Excel or integrated with third-party applications via ODBC (SuiteAnalytics Connect).

Furthermore, reports can be scheduled and disseminated to non-licensed users using the native NetSuite reporting functionality. These reports can be formatted in various ways, including Excel, CSV, PDF, or Word, ensuring versatile data accessibility for all stakeholders.

Want to see how much your user licenses will cost. 
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NetSuite Editions: Choosing the Right Fit for Your Business

Given that every company has its distinct needs, you may require additional functionalities beyond the standard NetSuite CRM and ERP features. To cater to these needs, NetSuite offers several optional advanced modules, which you can license based on your specific business requirements.

NetSuite modules can be licensed individually ("à la carte"), or bundled together into an "Industry Suite" – a pre-packaged selection of modules tailored for specific industries. For instance, "NetSuite Manufacturing" includes the necessary modules for a manufacturing firm to effectively operate their business via NetSuite. The platform also accommodates niche industries, such as metal fabrication; leveraging NetSuite's native manufacturing modules and bundled SuiteScript solutions, companies can operate in highly customized environments right from the onset in many instances.

The pricing of NetSuite's advanced modules and industry suites depends on the chosen edition type, with options ranging from Limited, Mid-Market, and Enterprise.

A majority of NetSuite modules can be subscribed to at any point during your NetSuite subscription term. The notable exception is NetSuite OneWorld, which is essential if your business comprises multiple legal entities that need separate financial management, inter-company transaction management, and financial consolidation. If such needs are foreseeable, it's advisable to license NetSuite OneWorld right from the get-go. Discover NetSuite OneWorld pricing here.

NetSuite's open architecture and modular license approach are part of its appeal, allowing businesses to add or remove modules as their needs evolve. However, remember that modules can only be removed during the contract renewal period. Hence, to prevent over-licensing, it's prudent to subscribe to modules only when they are necessary.

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

Financial Management Modules (FMS)

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

Inventory & Manufacturing Management Modules (WMS & MRP)

• Advanced Inventory
• Advanced Procurement
  
• Work Orders & Assemblies
• Manufacturing WIP & Routing
• Advanced Manufacturing
• Demand Planning

NetSuite Services Resource Planning Modules (SRP)

• Project Management
• Resource Allocation
• Job Costing
• OpenAir

Human Capital Management Modules (HCM)

• SuitePeople
• Premier Payroll Service

Ecommerce & Retail Management Modules (POS)

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

How Much Does a NetSuite Implementation Cost?

The process of discerning the exact cost of a NetSuite implementation can be intricate, due to the specific requirements of each client. Nevertheless, let us take a systematic approach to unpack the associated costs and processes involved.

Phase I: Discovery & Analysis - Laying the Foundation
The journey towards NetSuite implementation typically commences with a rigorous discovery and analysis phase. The scope and depth of this phase will hinge on the NetSuite partner spearheading your ERP implementation.

The essence of this phase is to equip your implementation team with an in-depth understanding of your business's operational structure, the existing business processes, the tools in use, and to pinpoint potential inconsistencies in the NetSuite solution. The data gathered is systematically documented and transmuted into a Business Requirement Document (BRD). Think of the BRD as your architectural plan for your NetSuite ERP initiative, determining how NetSuite will be tailored for your needs, and proffering solutions for any identified gaps.

It's crucial to appreciate the pivotal role the discovery and analysis phase plays in the success of an ERP project, shaping both your initial and future needs. Allocating sufficient time to this phase is an investment that can optimize your NetSuite venture and mitigate the risk of unanticipated costs in the future.

PRO TIP: Typically, a NetSuite Partner will allocate roughly 50-150 hours dedicated to gathering and documenting the requirements for your NetSuite ERP implementation, with the billable rate oscillating between $150 - $250 per hour. Be aware that rates below this threshold may potentially indicate offshore or less experienced resources.

A word of caution: An initial investment in a comprehensive and quality-controlled discovery and analysis phase can prevent unforeseen expenses related to overlooked requirements and costly change orders down the line.

Phase II: Configuration and Deployment - Putting Theory into Practice
Upon the approval of the BRD, the heavy lifting begins! Based on your chosen implementation methodology and the go-live objectives, you can anticipate approximately 2-3 configuration sessions per week, spanning around 10 - 14 weeks. These sessions pave the way for user acceptance testing (UAT), a precursor to the go-live phase.

As a rule of thumb, the configuration and deployment stage accounts for two-thirds of the entire project, with the remaining third attributable to the discovery and analysis phase. Therefore, if your discovery and analysis engagement required 100 hours, you should prepare for an additional 200 hours for the configuration phase, totaling a 300-hour NetSuite implementation.

PRO TIP: If you are operating under budgetary constraints or your project scope is relatively straightforward, consider enquiring if your NetSuite partner offers a "self-implementation" or "turnkey" approach. This could potentially result in substantial savings on professional services expenses.

Phase III: Customizations - Refining Your Solution
Customizations are often indispensable for automating processes and addressing gaps inherent in native NetSuite functionality. NetSuite offers two primary avenues for customization: SuiteScripting and SuiteFlow.

SuiteScripting enables developers to formulate bespoke business logic within NetSuite, tailored to suit specific business needs. It can be employed to automate business processes or develop entirely new applications. On the other hand, SuiteFlow provides a user-friendly interface, which allows non-technical users to configure workflows with simple point-and-click, drag-and-drop functionality—zero coding required!

PRO TIP: We recommend allocating an additional budget of $3-15k for customizations. While NetSuite is a sufficiently robust solution for most organizations, there may be instances where gaps are identified that necessitate customization.

NetSuite Integration Cost

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

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

SuiteScript

If you have the skill set you can develop your own custom integration through NetSuite SuiteTalk. 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.

NetSuite Connectors

NetSuite Connectors function as a bridge, allowing for a seamless "plug & play" amalgamation of NetSuite with other applications, eliminating the necessity for coding. Premier providers in this realm include Celigo and FarApp, with the latter being incorporated into NetSuite's portfolio in the spring of 2021. This strategic acquisition enhanced NetSuite's capability to offer native connectors, thereby negating the dependence on third-party vendors.

Integration Platform (iPaaS)

Integration Platform as a Service (iPaaS) represents the third modality for NetSuite integration. Though iPaaS tends to command the highest price point, it also delivers the most comprehensive solution. iPaaS heavyweights in the NetSuite ecosystem include Dell Boomi, Celigo, and Jitterbit. The pricing for these solutions is contingent on the client's integration needs and can range from several hundred to a couple of thousand dollars per month.

NetSuite Implementation Total Cost

When you consider the entire spectrum of activities involved in your NetSuite implementation, from initial discovery and analysis, through configuration and deployment, to data migration, integration, customization, and finally, training, most firms will see an overall expenditure between $25-75k. A deep understanding of this cost framework is crucial for precise budgeting of your NetSuite implementation and to optimize the value derived from this adaptable ERP solution.

Other NetSuite Cost & Considerations

NetSuite Support Pricing

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 a percentage of your software contract value.

A common alternative to subscribing to NetSuite Premium Support is to leverage your NetSuite Solution Provider for ongoing 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.

Finance Your NetSuite Initiative

NetSuite Solution Providers like Cumula 3 Group can 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 organization's 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 are 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.

What About NetSuite SuiteSuccess?

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 of 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 short go-live window and a limited scope.  

Software Subscription Duration

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, 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. This is not standard. You'll need to have your NetSuite Solution Provider (like CUMULA 3® Group) advocate for this on your behalf.

NetSuite SandBox

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.

Dedicated Service Tiers

NetSuite is always deployed 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. 

Historically NetSuite offers four different service tiers referred to as  (Tier 3, Tier 2, Tier 1 and Tier 1+/0). These tiers have since been rebranded and packaged and are now referred to as Standard, Premium, Enterprise and Ultimate.

Premium service tiers offer 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. 

Common benefits customers experience when upgrading service tiers:

• Reduced delays between system integrations
• More capacity at scheduled downtimes
• Minimal delays associated with high volume bottlenecks
• Greater transaction throughput
• More horsepower for concurrent processing
• Includes a NetSuite Sandbox

See the table below for a high-level overview of the various tiers, and click the blue button to get your customized NetSuite pricing estimate.

NetSuite Billing Options & Contract Term Duration

Generally speaking, Oracle NetSuite subscriptions are billed annually with due upon receipt terms. There may be situations where funding the full subscription in advance makes sense when taking advantage of unique pricing concessions or in the event of a software 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, one more point on NetSuite software billing, NetSuite licenses are always on Oracle paper (NetSuite Partners do not resell the software). If you decide to license through a NetSuite Solution Provider, your licensing arrangement is still directly with Oracle the software vendor. 

PRO TIP
Timing is everything when negotiating a new software contract. There are specific times during the year when 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!