Total Cost To Use NetSuite : Here Is A Detailed Cost Analysis
There are mixed reactions from different customers on the cost of NetSuite. Some say that that NetSuite is cheap and some customers feel that NetSuite is very expensive.
When you evaluate or use any ERP the thing to consider is the cost of ownership. In this article we will try to determine the cost of subscribing to NetSuite licenses, cost to implement it in your organization and the operational cost.
Of course there are ways in which you can save on NetSuite Cost.
What Are The Cost’s Involved To Running NetSuite ERP?
If you are planning to buy Oracle NetSuite ERP you will need to consider the cost involved in subscribing to licenses, Implementation service cost and the cost to keep the ERP running (Support cost).
The license cost will depend user counts who would use the ERP system, Legal entities, and the add-on modules required. These details are decided based on the business functions and business processes you would want to implement in your company.
NetSuite’s core functionality is financial management and there are a lot of industry specific additional functionality which are added as add-on modules or advanced modules.
NetSuite provides different pricing models and it is necessary you understand the cost associated with every component of NetSuite License.
NetSuite License Cost – Cost Of Subscribing To NetSuite
The user cost of NetSuite subscription is $99 per user per month.
When it comes to NetSuite, cost per user is not the only subscription criteria. You will also have to consider the subscription of advanced modules which gets apportioned to each user.
If you are a small business trying to expand, you can read our post on NetSuite pricing for small business which will give you an idea on the license cost and clarify any doubts you may have.
If you are a Manufacturing company we have a post which will detail if NetSuite is a right fit for you and the cost of licenses for manufacturing companies.
If you are a wholesale or distribution company, you can read our post on NetSuite for wholesale and distribution companies.
If you are a consulting or a service company we suggest you read our post on how NetSuite benefits service companies and the pricing details.
On average:
– A 10 to 15 user license of NetSuite would cost between $10,000 to $20,000 yearly
– A 15 to 50 user license of NetSuite will cost between $15,000 to $35,000 yearly
– A 50 to 100 user license of NetSuite will cost between $35,000 to $60,000 yearly
These license pricing above are after discounts. The list price will look really high but don’t be surprised to get some really good discounts from NetSuite.
There are multiple industry specific NetSuite editions available which will help you reduce the total cost licenses.
NetSuite Services Cost – Cost To Get Your ERP Running And Maintain It
NetSuite is a single platform to manage your financials, Customer relationship management, expense reports, projects, timesheets, financial reports and manufacturing, distribution and other key business metrics.
NetSuite Implementation Cost
The first cost you will incur on the professional services front is the implementation cost. Based on your company size and the user count we have generalized an approximate amount it will cost for implementation at your organization. this might change depending the complexity of functions you opt for.
The average cost for NetSuite implementation would be:
– A one time cost of $15,000 to $25,000 for a 10 to 15 user NetSuite implementation
– A one time cost of $20,000 to $50,000 for a 15 to 50 user NetSuite implementation
– A one time cost of $40,000 to $100,000 for a 50 to 100 user NetSuite implementation
You can check if NetSuite SuiteSuccess methodology works for your organization to take advantage of the reduced cost and faster implementation cycle.
NetSuite Customization Cost
Although NetSuite business management software has robust functionality, it sometimes becomes necessary to customize the system to meet your industry specific or company specific business requirements.
You might want to develope a very specific functionality which is propriety to your business or customize some reports which will add value to you. This is done through customization or custom development in NetSuite. NetSuite provides you a platform to customize it further so your business processes can be fit in.
The cost of customization will depend on the development efforts, experience of resources and the physical location of the consultants. The hourly rate for expert NetSuite consulting from a consultant in North America, Canada or United Kingdom will vary between $100 to $250 while a expert consultant from India, Singapore or Philippines will charge you between $30 to $80
NetSuite Integration Cost
Integrating NetSuite with other system of yours is a complex exercise and require complex technical skills and experience.
The customization expert will have to consider multiple scenarios for the data exchange between the two systems. This is referred to as architecting the integration.
Depending on the system to be integrated with NetSuite, the NetSuite integration expert decides if API’s needs to be used or if a utility need to be created to transfer the data.
The integration can be either real-time or in batch mode. The decision between real-time transfer of data or batch transfer depends on the volume of data and how much volume NetSuite and the other system servers can handle at a point in time.
The hourly rate for integration service is the same as the rate for customization services.
An average integration would be around 150 – 200 hrs and would cost you around $5000 to $10,000.
NetSuite Support Cost
After the initial implementation, NetSuite Partners or freelance experts in NetSuite provide you with support options post the system has gone live.
Depending on your business size and the number of users using NetSuite you will nee someone for ongoing support.
Your new users might need onboarding assistance, or you might need administrative support and training. this is covered as a part of NetSuite support services by a partner.
A partner will bill you between $5000 to $12000 yearly to support about 20 – 30 users. If your company is large an have multiple users, you might opt for dedicated resources which can be deployed as support resources on your project.
If you are a small company and need minimum support, you might opt for a freelancer or a virtual assistant to perform these tasks.
Conclusion: What Is The Total Cost To Use NetSuite?
– If you are a company with 10 – 15 NetSuite users, you will spend between $10,000 to $20,000 yearly on licenses and $15,000 to $25,000 as one time cost on implementation. You will also spend around $4000 to $6000 on support services every year.
– If you are a company with 15 – 50 NetSuite users you will spend between $15,000 to $35,000 yearly on licenses and $20,000 to $50,000 as one time cost on implementation. You will also spend around $6000 to $12,000 on support services every year.
– If you are a company with 50 – 100 NetSuite users you will spend between $35,000 to $60,000 yearly on licenses and $40,000 to $100,000 as one time cost on implementation. You will also spend around $18,000 to $30,000 on support services every year.