NetSuite, a comprehensive cloud-based Enterprise Resource Planning (ERP) solution, has carved a prominent niche for itself in the business software industry. Its advanced capabilities offer robust solutions that cater to the varied needs of businesses. But one question that businesses often grapple with is – How much does NetSuite cost per user?
NetSuite Pricing: An Overview
The base price for NetSuite starts at $999 per month. However, the actual cost involves more components. It includes the cost per user, which stands at $99 per user per month, according to the list price. The cost might seem high, especially for small businesses, but it’s important to remember that NetSuite is a powerful, scalable ERP solution that offers a wide range of features and functionalities.
User-Based Pricing: Digging Deeper
While the base cost of the software remains constant, the user-based pricing varies depending upon the number of users. At the standard rate, each full user costs $99 per month. This equates to an annual expenditure of $1188 per user. However, this price is subject to negotiation. Based on various user experiences, it’s possible to negotiate a discount of up to 35% on a 3-year term.
Breaking Down Costs: Additional Features
For businesses requiring more than the basic ERP functionalities, additional modules are available. These come at an extra cost and significantly enhance the capabilities of NetSuite. In fact, these additional features can be tailored to specific business requirements, making NetSuite a highly customizable solution.
If you need NetSuite Professional Services, you can expect to pay between $18,000 and $40,000. The cost varies based on the complexity of your business requirements and the extent of customization needed.
Cost Increases: What to Expect
As of June 2023, NetSuite has announced an increase in the full access user license price from $99 to $120. This is an important factor to consider when estimating future costs. Regular users have also noticed a trend where NetSuite tends to increase prices at every renewal, pushing the cost closer to the list price.
NetSuite: Value for Money?
While the cost of NetSuite might seem steep, it’s important to weigh the price against the comprehensive capabilities this software brings to your business operations. Its vast range of functionalities, its scalability, and the potential for customization make it a highly powerful tool that can enhance operational efficiency significantly.
FAQs: Unpacking the NetSuite Pricing Model
1. How is NetSuite’s pricing structured?
NetSuite’s pricing model is designed around the idea of flexibility and scalability to meet diverse business needs. It is a combination of a base license fee, user-based charges, and additional costs for extended functionalities or modules. The base fee is a fixed cost, whereas user-based charges vary depending on the number of users.
2. Can I get a discount on NetSuite?
Yes, it is indeed possible to negotiate for a discount on NetSuite’s list price. According to users’ experiences, a discount of up to 35% may be obtainable for longer-term commitments, such as a 3-year contract.
3. What are the additional costs involved with NetSuite?
Besides the base license fee and user charges, businesses may need to budget for additional costs for enhanced functionalities or specific modules they may require. These could range from professional services, advanced inventory management, to advanced financials, each incurring an additional cost.
While NetSuite maintains transparency in its pricing model, it’s essential to understand that the overall cost involves more than just the base license fee and user charges. This could include the costs for implementation, additional modules, and professional services.
5. What is the impact of increasing user numbers on the cost?
As NetSuite uses a user-based pricing model, the cost increases with the number of users. However, there could be scope for negotiating discounts on user fees, especially for larger teams.
6. How does NetSuite’s cost compare to other ERP solutions?
While NetSuite may seem more expensive than some other ERP solutions, it offers comprehensive, scalable, and customizable features that add substantial value to businesses. Thus, when comparing the cost, it’s crucial to factor in the potential for increased operational efficiency and business growth.
7. Are there any future cost increases to be expected?
As of June 2023, NetSuite has announced an increase in its full access user license price from $99 to $120. It’s also been observed that NetSuite tends to increase prices at every renewal, gradually moving closer to the list price. Businesses should factor in potential future price increases when considering NetSuite.
8. How does the cost of NetSuite Professional Services factor in?
NetSuite Professional Services provides tailored solutions to meet specific business requirements. However, it does come at an additional cost, which can range between $18,000 and $40,000, depending on the complexity of the requirements.
9. Does NetSuite offer any free trial or freemium version?
NetSuite does not offer a free trial or freemium version. However, it does provide demos and consultations to help businesses understand the product before making a purchase. Businesses interested in NetSuite should contact the company directly for the most current information.
10. Does the price differ based on the industry?
NetSuite offers industry-specific solutions that are pre-configured to meet the unique needs of different industries. This means the cost may vary depending on the complexity of your business and the specific industry functionalities required.
11. How is the cost calculated for larger teams?
For larger teams, NetSuite applies a per-user charge on top of the base license fee. Discounts can be negotiated based on the size of the team, making it more affordable for companies with a larger number of users.
12. Is there a difference in cost between full users and employee center users?
Yes, the pricing differs significantly. Full users are priced higher as they have unrestricted access to the system’s capabilities, while employee center users, who have limited access, are priced lower.
13. How does the implementation cost affect the total expense?
The implementation cost is a significant part of the total expense. It can vary widely depending on the complexity of the implementation, the need for data migration, integrations, customizations, and the size of the organization.
14. How does the choice of a license type affect the price?
NetSuite offers different types of licenses, including Full, Limited, and Self-Service. The choice of license type affects the price, with Full licenses costing more due to their unrestricted access to the system.
15. Is there a cost associated with upgrading NetSuite?
If you need to upgrade your NetSuite package to include additional modules or functionalities, there would be an associated cost. The cost would depend on the specific additions required.
16. Does NetSuite provide any cost benefits in the long term?
Despite its upfront costs, NetSuite could lead to cost savings in the long run through improved efficiency, reduced manual work, real-time insights, and scalable features that support business growth.
17. How frequently is NetSuite billed?
NetSuite typically bills its customers on an annual basis. However, specific terms and conditions might vary depending on your contract and agreement with NetSuite.
18. Is there a cost associated with NetSuite training?
While NetSuite offers various resources for learning and support, some of its training programs, particularly those offering certification, may come with an additional cost. However, investing in training can help maximize the value of your NetSuite investment.
19. Can you negotiate NetSuite pricing during renewal?
Yes, during renewal, you have an opportunity to negotiate the pricing terms. However, some users have noted that NetSuite tends to increase prices at every renewal.
20. Are there any costs associated with NetSuite integration with other systems?
If your business needs to integrate NetSuite with other systems, there could be additional costs involved. These could arise from the need for middleware, additional software, or professional services.
21. Is there a price difference between NetSuite ERP and CRM?
Yes, the NetSuite ERP and CRM are separate modules, each with its own pricing structure. The total cost will depend on the modules your business requires.
22. Can the price of NetSuite increase during the contract period?
Unless stated otherwise in your contract, the price you agree to when you sign your contract should remain stable during that period. However, note that NetSuite, like many other vendors, typically increases prices at the time of contract renewal.
23. How much does NetSuite OneWorld cost?
NetSuite OneWorld, the edition of NetSuite designed for multinational and multi-subsidiary operations, will have a different pricing structure. The exact cost will depend on several factors, including the number of users, subsidiaries, and the level of customization required.
24. Does the cost of NetSuite include support?
Most NetSuite packages include standard customer support within their pricing. However, if you require more comprehensive, round-the-clock, or dedicated support, there may be additional costs.
25. How does the number of subsidiaries affect the NetSuite OneWorld price?
The cost of NetSuite OneWorld increases with the number of subsidiaries because of the additional data, complexity, and maintenance required. Therefore, companies with a larger number of subsidiaries should expect higher pricing.
26. Is there an additional cost for NetSuite’s SuiteCloud Platform?
Yes, the SuiteCloud Platform, which allows for customization and integration, does come with an additional cost that would be added to your base NetSuite pricing.
27. What additional costs can I expect during NetSuite Implementation?
Additional costs can include customization, data migration, integration with existing systems, training your team, and potentially hiring a NetSuite implementation partner or consultant.
As with any comprehensive ERP software, there could be unexpected costs. These can emerge from added functionality, increased data storage, customization, additional training, or changes to the agreed-upon scope of use.
29. Does NetSuite charge for additional data storage?
NetSuite typically includes a certain amount of data storage in its base package. If your business requires additional storage, there may be an associated cost.
30. How does contract length impact NetSuite’s cost?
Typically, longer-term contracts may allow for more significant discounts on the per-user price. However, this also means committing to the platform for a longer duration.