How Much Does NetSuite Cost? NetSuite ERP Pricing & Licenses Explained
(3 Min Read)
“How much does NetSuite cost?” is the question that we hear the most often as a NetSuite Partner. Similar variations are “How much does NetSuite cost for a small business?” or “What is NetSuite for Mid-Market?”
These are reasonable questions to be asking when you’re deciding on which ERP system to purchase. Of course, there is no single universal price for implementing a cloud-based ERP like NetSuite - which actually makes it more accessible for fast-growing businesses. Let’s take a step back here for a moment and I’ll explain.
The way in which Oracle NetSuite differs from many of the hardware-heavy ERP (Enterprise Resource Planning) systems of the past is that it is a SaaS (Software as a Service) platform. Even more, it prides itself on its flexibility and building-block model ecosystem with an endless array of add on modules and third-party app integration capabilities.
When you’re purchasing NetSuite software for your business, the price of your package will depend entirely on what you want included. You can decide that on your own by using a pricing calculator to build your own package. However, in this article, I’m going to break down the basics of NetSuite pricing and explain its licensing and add-on model, as well as the main factors that will impact your upfront and long-term costs. The answer to each of the most common questions for Oracle NetSuite customers can be found in their pricing model.
Firstly, your NetSuite licensing cost is
based on 3 core factors:
- Your number of employees, which will determine the right Suite for your business when implementing NetSuite.
- How many of your employees will need full user licences VS. how many will need self-service user licences (I’ll explain the difference further below).
- The number of legal entities or subsidiaries your company owns in countries across the world.
Based on these 3 main factors, you’ll be able to choose between 3 different core editions of Oracle NetSuite ERP at different (and somewhat flexible) price points. These are called “suites”. You can get your annual NetSuite cost by adding your selected ‘Suite’ cost to the number of full users and self-service users you require in addition.
Ask A Question About NetSuite Pricing to Our ERP Specialists
How do I Select My Suite?
For most businesses under 50 employees, NetSuite Starter Edition is the recommended choice. In terms of licenses, we usually see a need of 6 to 10 users. This edition has the core ERP modules that you can evolve and add to as your business grows. It is designed to be cost-efficient and impactful for small businesses.
For companies that need more than 10 user licenses or have several legal entities around the world, NetSuite Mid Market edition is your best choice. It’s a more comprehensive package that comes with additional modules to handle specific functions based on your industry and business requirements. It also handles multiple companies and consolidates financial reports. It is a bit more scaled up than the Starter Package.
Now, the beauty of NetSuite is that it’s really designed to be a “lego building block” style of system. Each of the editions of the NetSuite solution, as well as its licensing fees model, are built to adapt as your company grows. That means that every edition comes with the same base modules, and the additional costs are all based on add-on functionality in the extra modules (ex: Payroll, Inventory Management, Project Management, etc.)
If your company needs more than 150 users, you’re looking at the NetSuite Enterprise Edition. With this edition, NetSuite offers additional out-of-the-box functionality, including tons of modules in addition to financial management, like NetSuite OneWorld for handling acquisitions and managing multiple subsidiaries in different currencies.
How much does a NetSuite user license cost?
There are 2 main types of user: “Full user license” and ‘self service license’.
A full user license is issued to roles that need to have transactional access in your ERP software. We’re talking about your CEO, the finance department, the sales team, your production team, and so on.
These are the roles that will be leveraging NetSuite to get comprehensive data, work on reports and need up-to-date data to make impactful decisions. Not everyone in your company will need a full user license to play around in NetSuite.
You can also purchase self-service user licenses bundles at a much lower rate. This type of user license can enter expenses reports, time entry on projects and access to NetSuite HR functions.
To get your NetSuite Pricing today, you can use our online price calculator. The price calculator will give you an accurate estimate of your licensing cost and help you choose the right edition and add-ons for your company.
If you want to learn more about the cost of Oracle NetSuite ERP, be sure to read through our in-depth NetSuite Pricing Guide, which can be found underneath our calculator.