What We Mean by “True Cloud”
When we say “True Cloud,” we mean a solution built from the ground up as a cloud-native, multi-tenant SaaS system. That implies:
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A unified, shared architecture across all customers.
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Automatic updates, seamless upgrades, and no need for on-prem or hybrid hosting.
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A single codebase supporting every module (finance, CRM, inventory, e‑commerce, etc.), ensuring tight integration and minimal technical debt.
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Minimal reliance on external middleware or third-party bolt-ons to deliver core ERP functionality.
NetSuite fits that definition. According to official comparisons, NetSuite was built for a multitenant cloud environment from day one, every customer runs on the same cloud-native architecture, and upgrades are applied automatically twice per year, carrying forward customizations. Because of its unified codebase, all modules, finance, CRM, inventory, billing, reporting, etc., live on the same platform.
That architecture translates into real-world benefits: easier upgrades, fewer moving parts, lower maintenance overhead, and a true “single source of truth” for business data.
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Why Dynamics 365 Often Ends Up as “Fake Cloud”
Although Dynamics 365 Business Central or Dynamics 365 Finance carry the “cloud” label, their architectural lineage reveals why many consider them less “pure” than NetSuite.
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Dynamics 365 originated in legacy on‑premises systems (Navision, Axapta), then was re-architected for the cloud.
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As a result, the solution tends to be modular, with different modules often living on different codebases. For example, CRM, finance, and other modules may require middleware (like Microsoft’s Dataverse) or third-party integrations to communicate.
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That leads to a more complex upgrade and maintenance landscape: customizations, extensions, and integrations may break when changes are applied. Many organizations implement hybrid deployments or rely heavily on partners to manage updates and infrastructure.
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Moreover, certain critical ERP features, like intercompany consolidation, revenue recognition, subscription billing, or global multi-entity support, may not be native and often require add-ons or external tools.
In short: Dynamics 365 often operates as a patchwork of applications, some cloud-hosted, some reliant on middleware or partner services, which undermines the simplicity and elegance expected of a “true cloud” ERP.
The Hidden Costs of “Hybrid Cloud”: Maintenance, Middleware, and Risk
When a system isn’t truly cloud-native, the overhead shows up in a number of ways. For many Dynamics 365 users, the consequences manifest as:
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Complex upgrade cycles: Because modules and customizations live on different codebases, each update can require extensive regression testing, adjustment of middleware, and partner involvement, increasing both time and risk.
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Higher total cost of ownership (TCO): Ongoing costs accrue not just from licenses, but from maintenance, third-party bolt-ons, integration, partner consulting, and potential re‑work when customizing or consolidating modules.
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Fragmented data and delayed insights: With modules living on different platforms, achieving a unified, real‑time view across finance, CRM, inventory, operations, etc., becomes more difficult. Reporting often relies on external tools (e.g. BI middleware) rather than a single unified database.
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Heavy reliance on partners for support: Because of technical complexity and fragmentation, many organizations must lean on external consultants or partners for implementation, maintenance, and support, reducing vendor accountability and control.
Essentially, while Dynamics 365 may offer cloud deployment as an option, the legacy baggage often means hybrid setups or ongoing hybrid-style maintenance.
NetSuite as “True Cloud”: Business Implications for Growing Companies
For organizations evaluating ERP platforms, especially mid‑market companies scaling rapidly, international operations, multi‑entity consolidation, or global rollups, NetSuite’s cloud-native design offers advantages beyond marketing slogans.
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Scalability & flexibility: NetSuite supports global operations (multi-entity, multi-currency, multi-subsidiary) within the same platform, without requiring separate instances or complicated architecture.
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Lower maintenance overhead: Automatic biannual upgrades, unified codebase, and minimal middleware reduce overhead for IT staff, freeing resources to focus on business rather than infrastructure.
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Faster time to value: Because modules are natively integrated, there is less need for complicated integration projects or third‑party bolt-ons, simplifying deployment and accelerating ROI.
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Consistent user experience & unified data model: With everything on a single platform, users across finance, sales, inventory, and operations share the same real-time data and workflows, reducing silos and enabling clearer business insight.
Because of these strengths, many companies evaluating ERP for growth, consolidation, or global expansion view NetSuite not just as a tool, but as a strategic foundation for operational agility.
Why “True Cloud” Matters, Beyond Buzzwords
Calling something “cloud” can be superficial marketing if the underlying architecture still carries legacy constraints. For an ERP, which sits at the core of financials, operations, compliance, and global business processes, those constraints can translate into real risks: data fragmentation, integration complexity, upgrade headaches, vendor lock‑in, high ongoing costs, and slowed agility.
Labeling NetSuite as “True Cloud” isn’t just marketing spin. It reflects an architecture built from the ground up to embody cloud-native ideals, unified, flexible, continuously updated, and vendor-maintained. In contrast, Microsoft Dynamics 365, though technically offered “as a cloud solution”, often inherits significant legacy complexity. In practice it behaves more like a hybrid or hosted solution, requiring external maintenance, middleware, and ongoing partner reliance.
For companies that want operational simplicity, predictable scalability, and minimal technical debt, the difference matters.
Industry Example #4: Financial Services & Payments
1. Continuous Reconciliation & Variance Detection
AI Agents monitor GL activity, bank feeds, gateway data, and transaction patterns, and draft corrections in real time.
2. Compliance & Audit Automation
Agents can prepare documentation, trace entries, and detect anomalies that violate controls.
3. Dynamic Cash-Flow Optimization
Autonomous forecasting Agents update projections daily and highlight liquidity risk.
For financial organizations, vertical AI becomes a compliance multiplier and a strategic advantage.
Why This Matters: Your Clients and Partners Will Expect AI
Industries are evolving quickly. As your partners, suppliers, and customers adopt their own AI workflows, they will push these expectations outward.
Meaning: If your business cannot meet AI-driven turnaround times, insights, or reporting standards, you will lose opportunities to competitors who can.
This is no longer optional, it is becoming part of the vendor selection process. Companies that start preparing for AI in NetSuite today will be the ones that keep and win business tomorrow.
Ready to Experience True Cloud ERP?
Here’s the roadmap leading companies are following: Don’t settle for a hybrid or “fake cloud” solution. Discover how NetSuite’s True Cloud ERP can simplify your operations, unify your data, and reduce IT overhead.
FAQ
Q: What does “True Cloud ERP” mean?
A: A True Cloud ERP is built from the ground up as a cloud-native, multi-tenant SaaS solution. This means a single unified codebase, automatic updates, seamless upgrades, and no reliance on on-premises servers or hybrid setups. NetSuite fits this definition, unlike many systems marketed as cloud-based.
Q: Why is Dynamics 365 considered “Fake Cloud” by some experts?
A: Dynamics 365 often inherits legacy on-premises architecture from earlier systems like Navision or Axapta. This results in hybrid deployments, modular codebases, and reliance on middleware or partners for upgrades and maintenance, which increases complexity and overhead.
Q: What are the business advantages of choosing NetSuite True Cloud ERP?
A: NetSuite provides a unified platform with integrated modules for finance, CRM, inventory, billing, and reporting. Benefits include simplified maintenance, automatic upgrades, faster ROI, reduced IT overhead, and real-time, centralized data for all business units.
Q: Does NetSuite require third-party hosting or partner support?
A: No. NetSuite is a fully managed SaaS platform with biannual automatic updates. There’s no need for additional hosting, hybrid infrastructure, or complex third-party support for core ERP functionality.
Q: How does True Cloud ERP reduce risk compared to hybrid cloud solutions?
A: By keeping all modules and customizations in a single codebase, True Cloud ERP minimizes integration issues, avoids upgrade conflicts, and ensures consistent data across all departments. Hybrid solutions like Dynamics 365 can create fragmented data and require extra maintenance, increasing operational risk.
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