Choosing between NetSuite and SAP for your ERP system depends on your business needs. I’ll compare these two solutions in this article, including a deep dive into NetSuite vs. SAP on deployment, financial management, customisation and user experience. At Jacopo, we want to help you decide which ERP is right for your business.
If you’re short on time…
- NetSuite is a user-friendly cloud ERP with strong financial management, scalability, and integration, which is perfect for small to medium businesses.
- SAP offers extensive customisation and multiple deployment options (on-premise and hybrid) for larger businesses with complex operational needs, but it is potentially more expensive.
- When choosing between NetSuite and SAP, you need to evaluate your business requirements and operational goals. NetSuite is great for ease of use and scalability, while SAP is robust for functional capabilities for complex governance and industry-specific solutions.
Overview of NetSuite and SAP
Founded in 1972 by five ex-IBM employees, SAP has grown to become one of the top software companies in the world. It is known for its wide range of ERP solutions, such as SAP Business One and the advanced ERP SAP S/4HANA. NetSuite went public in 2007 and was later acquired by Oracle, establishing itself as a cloud ERP player with a suite of connected applications.
NetSuite serves multiple industries, including retail, manufacturing and professional services, offering an integrated set of modules that allows smooth operations across business domains without the need for integration. With a customer base of over 41,000 across 200+ countries, NetSuite’s reach and functionality are impressive. They are committed to cloud technology that simplifies operations and eliminates the complexity of managing local servers.
On the other hand, SAP’s Enterprise Resource Planning solutions cater to different corporate sizes and needs—the design philosophy behind SAP Business. One is for small and medium businesses (SMBs), while larger companies find their needs met by-products like SAP S/4HANA or the versatile platform SAP Business ByDesign. Committing to cloud strategies to follow the business trends shows how determined they are to evolve with the changing business landscapes. When comparing these two giants head to head, NetSuite is simple and user-friendly due to its cloud nature. SAP impresses users with its broad customisation options and scalability within its portfolio. Both providers can reinvent organisational efficiency with midmarket targeted Enterprise Resource Planning systems but with different approachability and malleability principles in this competitive landscape.
Deployment options
Deployment options are a key factor when choosing an ERP solution. NetSuite is cloud-only and multi-tenant, so no local server installation is required, and organisations can focus on their core business without significant infrastructure demands. The benefits of this cloud-only model are automatic upgrades and maintenance, reducing the IT burden on end users and faster implementations that can be done in 3-6 months.
SAP S/4HANA has multiple deployment options to suit different business needs:
- On-premise
- Hybrid
- Public cloud edition (multi-tenant SaaS)
- Private cloud edition (single tenancy requiring more IT involvement)
While these options offer flexibility, they also introduce more complexity during setup, especially when integrating features like SAP Analytics Cloud.
The decision on where to host an ERP system – whether it’s self-hosted (on-premise), hosted in the cloud or managed by third-party services – is critical in determining the cost and operational impact. Companies that choose SAP S/4HANA may encounter more complexity during implementation and higher costs due to high IT requirements and potential dependencies on partners for customisation and ongoing management tasks.
The culmination of the comparison between NetSuite’s simple cloud-only solution and SAP’s wide range of options rests on each company’s unique operational requirements and overall strategic objectives, despite the complexities of broader options from systems like SAP for specific business needs.
Financial management capabilities
Financial management is critical in any ERP solution, and both NetSuite and SAP excel in this area. NetSuite automates various accounting functions such as accounts receivable, payable and cash flow management, so operational efficiency is improved by reducing manual input. Its built-in financial consolidation provides real-time fiscal performance insights, which are vital for decision-making. On the other hand, to achieve similar financial consolidation capabilities with SAP Business One typically requires additional modules or integration with external applications. This can bring complexity to financial management and extra costs. But, SAP’s broad suite has a range of financial management tools to meet different business needs.
NetSuite stands out from the competition. With its AI-powered financial reporting that gives instant insights into monetary activities overall. It automates account payments not just for accuracy but also to manage cash flow better by avoiding manual procedures and taking advantage of early payment discounts – which translates to huge savings by avoiding reconciliation discrepancies and reducing manual processing costs through professional services automation.
SAP’s offerings in finance functionalities are significant in their own right. However, they often require deeper customisations and integrations to make processes as streamlined and automated as NetSuite’s. Companies need to consider these differences carefully when choosing an ERP that suits their finance management needs.
Supply chain management features
ERP systems play a key role in managing supply chains and improving business operations. With real-time inventory tracking and a user-friendly interface, NetSuite gives businesses more control over their supply chain logistics. It has advanced features for managing stock, such as demand forecasting, warehouse management and automatic restocking based on sales figures.
SAP Business One’s inventory management approach lacks advanced features like real-time data analysis, potentially hindering operational productivity. SAP S/4HANA excels in high-level production planning and vendor relations features for large corporations with complex supply chains.
NetSuite enhances its supply chain management suite with automated notifications for critical stock levels to avoid stock-outs or overstocking. The system integrates procurement processes into its ERP framework, making purchasing and supplier coordination simple. NetSuite has better scalability options to support growing supply chain requirements than SAP Business One’s offerings.
In summary, while SAP has broad functionalities for large enterprises with complex needs, NetSuite is a strong contender mainly because of its simple operation model and automation-driven approach to supply chain logistics and overall operational efficiency.
Customisation and integration
Customisation and integration are key for companies that want to modify their systems to meet their needs. NetSuite’s flexible architecture allows businesses to change workflows and reports cost-effectively. Its user-friendly customisation, driven by point-and-click actions rather than complex coding, will enable users to create custom configurations without a technical background.
SAP’s approach to customisation is more rigid and typically requires partners, which can mean more costs and complexity. To extend its capabilities, one needs to use SAP’s Business Technology Platform and partner-created applications, which adds complexity and financial input required for personalisation—points that might be important for companies who want simplicity and cost-effectiveness in their customising endeavours.
NetSuite stands out in integrating third-party services mainly because of its seamless integration process that won’t disrupt existing workflows. All modules share a single codebase, so unification needs no extra setup for each module. NetSuite also has an extensive marketplace with over 600 ready-to-use integrations that make connecting to other software platforms easy.
Linking external applications within SAP requires help from expert partners, which can mean a complicated implementation process and higher costs. Ultimately, NetSuite’s underlying structure and integration capabilities offer big benefits for companies looking for an expandable ERP that is still easily customizable.
User experience and interface
ERP systems’ user experience and interface are key to their adoption and use. NetSuite has an easy entry point with a gentle learning curve, so new users can quickly get up to speed with the system. This is because of its single-product approach, which creates a more cohesive user experience, unlike SAP’s multiple ERP products, which can be overwhelming for some users.
NetSuite has the same interface across all modules, simplifying overall ease of use and navigation within the platform. Customization allows NetSuite users to create dashboards that fit their business needs, improving functionality.
Because of its complexity, mastering SAP’s user experience requires more training and support. Although SAP has customisable dashboards and a sophisticated user interface, navigating through its complex ERP products can be very challenging for those without technical backgrounds.
Industry-specific solutions
Companies looking to fine-tune their operations can greatly benefit from ERP systems that have industry solutions. NetSuite has industry-specific packages that address the unique challenges of different industries, so no heavy customisation is required. Companies using NetSuite get instant data and analytics tailored to their industry, making decision-making easier.
NetSuite’s inventory management module can streamline warehouse activities across multiple locations and sales channels by using historical trends and market analysis to predict future inventory needs. By automating tasks such as reordering and data entry, it saves time, reduces errors, and increases visibility with its strong inventory management capabilities.
SAP offers industry solutions to fulfil specific industry needs, making its ERP more relevant to those markets. For companies that need to manage global operations, SAP S/4HANA stands out with its complete set of industry-focused features. So, SAP is a good option, especially for larger companies with complex operational needs.
Integrating inventory with other business components in NetSuite’s suite makes operations more efficient and consistent across all company functions. Process automation and instant visibility into stock levels in NetSuite help businesses streamline and optimise their operations, including maintaining optimal stock levels.
Pricing
When choosing an ERP system, it’s important to consider both pricing and total cost of ownership (TCO). NetSuite uses a SaaS-based pricing model with an upfront core subscription fee, additional module costs and a one-time setup fee. These fees are based on the number of users and the level of customisation required. The predictability of the expenses under this model is seen as an advantage for companies.
NetSuite’s monthly cost depends on user charges, suite subscriptions, core features and total user count. Implementation costs vary between €9,000 and €230,000 depending on project complexity and number of users involved in the implementation process. Once setup is complete, ongoing maintenance costs, system upgrades, and potential customisations will all contribute to NetSuite’s TCO. On the other hand, SAP Business One is usually for smaller companies with lower initial licensing fees.
However, long-term costs can increase as the business grows, and more functionality is needed. When evaluating SAP Business One, it’s not just about the upfront payment but also recurring maintenance fees, enlargements and modifications. Fees per Full User License, which gives full access to all features, can range from €90-to-€180 per month per user using NetSuite solutions.
Customer support and resources
Ensuring ERP systems run smoothly and are optimised is crucial, and NetSuite has various support services to cater to different business needs. These are Basic, Premium and Advanced Customer Support levels. The top tier (Advanced Customer Support) is an in-depth strategy for continuously optimising and maintaining the NetSuite system through proactive measures and customised help.
NetSuite users can get help from SuiteAnswers, which has a knowledge base with articles, best practices, tutorials, and resources. There is a community forum where users can interact with each other to share tips or get advice from other customers using the platform. Unlike SAP Business One, where the client doesn’t always get uniform updates because they rely on multiple partners for upgrades, companies using NetSuite get automatic software updates, so all users are on the same version.
Those using SAP Business One as their ERP framework have access to support via SAP’s network of partners. However, the level of support may vary greatly depending on which partner is providing the services. This dependence on partner-provided support introduces inconsistency in customer relationship management, a factor that affects both business intelligence and overall business process management.
Implementation considerations
Setting up an enterprise resource planning (ERP) system has multiple stages, including planning, design, development, testing, deployment to live and maintenance. The planning phase is crucial as it sets the direction and scope of the project and prevents problems down the line. Involve key people from different departments early on in this phase to surface potential issues and create clear communication channels. During the launch phase, legacy systems are run alongside the new cloud ERP solution, which is shared as a risk mitigation strategy during the transition period. User training becomes critical if users are to adopt the new ERP solution. This training should be done before going live. Cloud-based ERPs like NetSuite have faster setup times compared to traditional on-premise setups.
Once deployed to production, attention shifts to collecting user feedback so that fine-tuning can be done within these complex systems. Don’t forget to account for hidden costs—such as dips in productivity due to changes in workflow or reallocation of internal assets—that impact the total cost of ownership (TCO). Data migration must be monitored and planned to ensure smooth operations throughout implementation.
Given the empirical trends that 50% of software rollouts will exceed time estimates and many will exceed budget, it’s clear why preparation must be serious when integrating NetSuite by 2025.
Scalability and flexibility
The ability to grow and adapt is key to any ERP solution, especially for businesses on the move. NetSuite excels in scalability and is an ideal choice for companies that want to grow without significant changes. Its infrastructure is built to keep up with the growing size of small to midsize companies, handling increased demands smoothly.
NetSuite’s high customisability allows companies to modify the platform to fit their operational needs. This level of customisation is critical to handling more complex tasks and larger transaction volumes without added costs or disruptions. Companies can ensure that it grows with them by customising NetSuite’s scalability and flexibility according to their needs.
SAP Business One has limitations regarding scalability, which can affect its performance among medium-sized and larger companies. SAP solutions may require multiple instances to cater to numerous subsidiaries, leading to isolated pools of data complexities. Hence, companies that value scalability and flexibility may find NetSuite a more malleable and expansive ERP system option.
NetSuite vs SAP for small and midsize businesses
There are many factors to consider when considering ERP for small and midsize businesses. NetSuite offers an all-in-one cloud-based ERP solution for SMBs with a suite of applications that brings together access to and visibility of critical data. The platform’s user-friendly interface and customisable dashboards make it easy for non-technical staff to use and SMBs to streamline their operations.
NetSuite’s transparent pricing suits smaller businesses that want to manage their expenses better. Its user-based billing allows SMBs to pay only for the number and type of users they need. Real-time analytics gives companies instant insights across all business areas and enables quicker decision-making and overall operational performance.
On the other hand, SAP Business is. One appeals to smaller businesses because of its low introductory license fees but can result in higher total costs over time as the company grows and needs more functionality from the software. SAP Business. One can conform closely through native options or third-party add-ons for different industry requirements.
In summary, NetSuite’s scalability and flexibility make it suitable not just for current needs but also for future growth trajectories without any technology constraints that businesses encounter with this suite. With exhaustive application features and instant analytics within, it is an ideal ERP solution for SMEs looking for operational efficiency via operational optimization methods.
NetSuite vs SAP for large enterprises
Large companies need specialised ERP solutions, and NetSuite answers this demand with its financial management tools. These tools can handle intercompany netting, which is useful for companies that operate globally. SuiteAnalytics has real-time data visualisation features, critical for monitoring large operations.
NetSuite is an approachable platform for large companies that want customisation without technical expertise. The system’s user-friendly customisation capabilities match its integration capabilities, making it a good choice for big enterprises that need an adaptable and scalable ERP solution.
On the other hand, SAP has a strong presence in large business segments with powerful ERP systems like SAP S/4HANA that meet complex organisational requirements. With a wide range of products and industry-specific solutions for specific needs, SAP is a strong competitor for large companies looking for comprehensive functionality from their ERP systems.
Key differences
When evaluating ERP like NetSuite and SAP, you must align your immediate needs with your strategic goals. With its robust ecosystem, scalability and user-friendliness due to its cloud-centric design and intuitive interface, NetSuite is a good choice for companies looking for a simple yet flexible ERP solution.
However, NetSuite may have limitations compared to SAP S/4HANA, especially regarding operational efficiency and financial management, with inherent functional strength in handling large transaction volumes, complex compliance requirements, global operations or industry-specific needs. One may have a better fit for particular company scenarios.
The main differences between NetSuite and SAP highlight the need to evaluate ERP solutions against each company’s unique requirements. While NetSuite offers simplicity and expandability, SAP provides detailed customisation possibilities and industry-tailored offerings. Thus, decision-makers must weigh both operational needs against future goals before choosing a system.
Let Jacopo help you decide your options
Choosing an ERP system is a strategic decision that can have a far-reaching impact on a company’s ability to improve operational efficiency and grow. Both NetSuite and SAP have robust ERP solutions with their own strengths. For example, NetSuite’s cloud-based approach, user-friendliness and scalability are ideal for companies looking for an adaptable ERP solution.
On the other hand, SAP has comprehensive product offerings and industry-specific solutions for companies with complex operational requirements or those who want specific functionality. Understanding the fundamental differences between NetSuite and SAP will help you make an informed decision that matches your company’s unique requirements and future goals.
As you search for the right ERP system for your company, consider operational needs and the ability to scale up or down based on demand and overall objectives. Choosing the right ERP solution enables you to simplify business processes and boost productivity—this means sustained growth and scalability so your business will thrive in the coming years.
Frequently Asked Questions
What is a key advantage of using NetSuite for project management?
A key advantage of using NetSuite for project management is its project tracking, resource allocation and financial spend management capabilities, which are ideal for service-based businesses. W hen comparing NetSuite vs SAP, you need to consider that NetSuite’s integration is more extensive and user-friendly than SAP’s, which often requires partner assistance to connect to external applications.
So, NetSuite is the more obvious choice for seamless integration.
How does NetSuite’s integration capabilities compare to SAP?
When comparing NetSuite vs SAP, you must consider that NetSuite’s integration capabilities are more extensive and user-friendly than SAP, which often necessitates partner assistance for building connections to external applications.
This makes NetSuite a more accessible option for seamless integration.
What are the deployment options available for SAP S/4HANA?
SAP S/4HANA has multiple deployment options, including on-premise, hybrid and public and private cloud editions, so you can choose the one that fits your needs.
Why might small and midsize businesses prefer NetSuite over SAP Business One?
Small and midsize businesses choose NetSuite for its user-friendly interface and cloud-based ERP, providing real-time data and predictable pricing, ultimately boosting operational efficiency.
What are some common challenges in ERP implementation?
Many hurdles, including data migration, change management, customisation, integration and training, can impact ERP implementation success and total cost.
You need to address these issues proactively to have a smoother transition.
