The world of NetSuite licensing in 2023 may seem like a labyrinth to navigate. Still, by understanding the different options and strategies available, you can unlock the full potential of this powerful software for your business.
In this blog post, we will take you on a journey through the various NetSuite licensing options, cost-saving tips, and factors to consider when choosing a partner, all focusing on maximizing your return on investment and ensuring a successful implementation.
Explore NetSuite licensing options and leverage strategic purchasing tactics to reduce costs.
Timing your purchase correctly can maximize cost savings while considering factors for long-term implications when negotiating contract terms and conditions.
Choose the right partner to ensure successful implementation & ongoing support with customer service & training services available at varying costs.
Understanding NetSuite Licensing Options
When it comes to licensing NetSuite, one size does not fit all. Companies have a variety of options at their disposal, each with its own set of benefits and drawbacks.
By understanding these different approaches, you can decide on the best path for your organization, whether that involves working directly with NetSuite’s sales and service team, partnering with a business process outsourcing (BPO) provider, or collaborating with a NetSuite solution provider.
Direct Sales and Service Team
If you’re considering purchasing NetSuite directly, it’s essential to understand the role of the Direct Sales and Service Team. This team comprises experienced professionals committed to assisting customers in acquiring and implementing NetSuite.
When going this route, it’s critical to comprehend all integration options available through NetSuite, including the software your company currently uses and each business process that needs to be integrated with NetSuite.
While purchasing directly can be suitable for some companies, others may benefit from selecting a third-party NetSuite Partner, especially if they have intricate business operations or require tailored configurations and integrations.
Business Process Outsourcing (BPO) Partners
For some companies, partnering with a NetSuite BPO may be a more suitable option. These BPOs offer a tailored solution for accounting agencies that provide a combination of software and ongoing accounting services in a monthly package.
BPO programs are ideal for small companies that possess adequate funds and have the potential of growth. However, they may lack the necessary resources to staff an entire accounting and finance team. However, it’s essential to note that this program does not provide a licensed instance of NetSuite that can be customized and configured to meet specific business requirements.
NetSuite Solution Providers
If you’re seeking guidance on navigating the potential risks associated with NetSuite licensing, partnering with a NetSuite Solution Provider might be the best action. These providers offer benefits such as increased time efficiency, customizable implementation, pre-constructed integrations, and tailored packages.
It’s important to obtain an accurate Subscriptions Software Agreement (SSA) and license estimate, as future renewals are contingent upon the initial agreement. Surprisingly, working with a NetSuite Solution Provider and NetSuite’s direct sales team offers no pricing advantage, as both parties utilize the same NetSuite price sheet.
Tips for Saving on NetSuite Licensing Costs
While NetSuite can be a significant investment, there are several strategies you can employ to save on licensing costs. By timing your purchase wisely, negotiating contract terms and conditions, and adopting a license-as-you-go strategy, you can maximize your return on investment and minimize the financial burden of implementing this powerful software solution.
Timing Your Purchase
When it comes to purchasing NetSuite, timing is everything. Synchronizing your purchase with the deadlines of your organization and software provider’s fiscal calendar can help you achieve cost savings. This further leads to an increased return on investment (ROI) for your NetSuite and implementation cost.
Be aware that the final business day of the fiscal calendar is the most suitable time to discuss a new software agreement, as buyers can secure a beneficial agreement, potentially with more competitive pricing or additional incentives.
Contract Terms and Conditions
When negotiating contract terms and conditions, it’s essential to consider provisions regarding transferability, warranties, confidentiality, indemnification, damages, and usage restrictions.
If faced with increasing NetSuite subscription fees, consider switching vendors, paying the renewal fee, or communicating with NetSuite management to attempt to reach a more favorable agreement. Always be aware of the long-term effects of your NetSuite licensing decisions, including the potential for escalating costs over time.
License as You Go
Adopting a gradual licensing strategy with NetSuite can be beneficial in terms of cost control while still taking advantage of the platform’s capabilities.
However, be cautious when selecting a larger package in return for a discount, as acquiring modules and services that are not needed can lead to unnecessary expenses.
NetSuite Pricing Based on Company Size and Industry
NetSuite is designed to meet the needs of various businesses and industries, offering pricing options contingent upon company size, industry, and deployment mode.
Companies with extensive user bases and more intricate requirements will incur a higher cost for their NetSuite licenses. The package includes core functionalities and add-on modules that are specifically applicable to each industry.
Some editions of NetSuite include the Starter Edition for startups or small businesses with up to 50 users, priced at $999 per month. The Mid-Market Edition is tailored to companies with 50 or more users and up to 999 users. It comes at a monthly rate of $999. The Enterprise Edition caters to huge companies with more than 1000 users, priced at $1999 per month.
The cost of NetSuite modules, such as financial management, inventory management, order management, eCommerce, and supply chain management, depends on the edition and number of users.
NetSuite Add-On Modules and Customizations
To meet specific business needs, NetSuite offers additional modules and customizations. These add-on modules provide advanced capabilities beyond the base module for financials and CRM.
Two main types of customizations are available for NetSuite: those provided by NetSuite integration partners and those created by the user. The cost of NetSuite customizations is contingent upon the required specifications. However, dynamically adding and removing modules by changing business needs is a major benefit over traditional on-prem perpetual ERP software.
NetSuite Implementation and Integration Costs
The costs associated with NetSuite implementation and integration can range from $10k to $100k+, depending on individual requirements and associated cost drivers. Various needs and cost drivers may affect these costs, such as the complexity of the implementation, the number of customizations required, and the level of integration with other systems.
NetSuite offers direct integration, third-party connectors, and custom integrations. Connectors and integrations can be acquired from third-party providers to reduce NetSuite implementation and integration costs.
NetSuite E-commerce Solutions
NetSuite offers SuiteCommerce, an eCommerce component designed to enable businesses to create and manage an online presence. NetSuite eCommerce pricing is tailored to each user’s feature requirements. It can range anywhere from $799 to $1,999 per month. SuiteCommerce InStore is a mobile point of sale (POS) solution. It is designed to be used on the SuiteCommerce platform.
SuiteCommerce costs depend on the number of users, the SuiteCommerce package purchased, and the monthly transaction volume. Utilizing SuiteCommerce obviates the requirement for integrations or supplementary effort to link the two programs, which can save time and resources compared to using third-party eCommerce software.
Choosing the Right NetSuite Partner
Selecting the right NetSuite partner is essential for successful implementation and ongoing support. An appropriate partner will grant access to experienced consultants familiar with NetSuite and industry standards, diminishing risk, offering assurance, and permitting smooth customizations and integrations with other cloud-based applications.
When selecting a NetSuite partner, evaluating factors such as experience, customer service, and pricing is essential. Be sure to research and compare different options, as pricing and customer service can vary depending on the partner. Remember that NetSuite partners encompass direct sales and service teams, business process outsourcing (BPO) partners, and NetSuite solution providers.
Customer Support and Training
NetSuite is renowned for its excellent customer service and educational resources. Customers can access assistance via email or telephone. At the same time, SuiteAnswers, a free self-service support site within NetSuite, answers numerous common questions, training videos, support articles, and best practice documents.
The cost of NetSuite training and support may vary depending on certain factors, ranging from $2k-$15k+. For ongoing NetSuite support, you can engage with a licensed service provider at their hourly rate or select one of the three service levels of NetSuite’s Suite Support.
Training new users and teams is essential to ensure the software is properly set up and managed.
In conclusion, understanding the various NetSuite licensing options, cost-saving strategies, and factors to consider when choosing a partner is crucial for maximizing your return on investment and ensuring a successful implementation. With the right approach and a clear understanding of the landscape, you can unlock the full potential of NetSuite and position your business for success in 2023 and beyond.
Frequently Asked Questions
How does NetSuite licensing work?
NetSuite offers a scalable and flexible licensing model that allows businesses to purchase additional user licenses and add optional modules as their requirements grow. With NetSuite’s annual subscription, businesses can easily upgrade their licenses when they need more users and features without significant overhead costs.
How much is NetSuite per month?
NetSuite offers tailored packages, so the cost per month can vary. The base license starts at $999 monthly, with $99 per user access costs.
Additional modules and services may also be added for an additional cost. However, NetSuite’s pricing plans are designed to be flexible and scalable to fit each customer’s needs.
How many users can you have on NetSuite?
NetSuite allows businesses of any size to register unlimited users, so the number of users you can have on NetSuite is limitless.
It’s an incredibly flexible platform designed to meet your specific business needs, whether large or small.
NetSuite’s licensing model works on a per user/per month basis, with users needing to pay a monthly fee for the number of users they have subscribed to. Additionally, there is an implementation fee charged upfront to cover the initial set up process.
As you add more users or add additional modules to your license, your fees will go up accordingly.