It has been said that you don't get what you deserve...you get what you negotiate and licensing NetSuite for the first time is no exception. Cumula 3 Group is a technology consulting firm specializing in helping companies adopt cloud-based applications like NetSuite, you could say we are the NetSuite licensing experts. Being a NetSuite Value Added Reseller (VAR), also known as a NetSuite Solution Provider we're often asked questions like...
What is NetSuite's pricing and licensing model?
How much does NetSuite cost?
How much does it cost to implement NetSuite?
Why should I work with a Partner instead of NetSuite directly?
Due to the breadth of offering, NetSuite doesn’t publish their subscription pricing information but relies on a robust ecosystem of partners, like Cumula 3 Group to aid new NetSuite customers with licensing NetSuite for the very first time. We help customers with product education, demos, trial accounts and ultimately negotiate a great NetSuite license subscription on your behalf. In fact, its what we do for a living and we generally save companies a ton of money in doing so.
Our aim is to provide our clients and future customers with as much information as possible when considering licensing NetSuite for the very first time. This post should assist the reader to better understand how NetSuite packages its subscription fees and the potential variables that can influence the cost of the subscription. You can also initiate getting a
NetSuite license estimate from us or
schedule a call to further discuss your situation.
Get A NetSuite License Estimate 1. The Suite
NetSuite starts with a Suite. The Suite comes in three sizes, Limited Edition (Small), Mid-Market Edition (Medium) and Enterprise Edition (Large). These editions are based on the number of required user licenses.
The monthly fee for Limited Edition starts at $999 per month and is packaged for smaller companies that need to license between 1-10 named users.
Mid-Market Edition’s monthly fee $2,499 and is appropriately sized for companies that need to license between 11-1,000 named users.
Lastly, Enterprise Edition starts at $9,999 per month and designed for companies needing to license over 1,000 named users.
Each of these editions include both Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) capabilities. In addition to covering the basic functionality that most companies will require, NetSuite also offers a whole host of advanced modules users can leverage dependent upon their specific industry, business processes and unique user requirements.
NetSuite's advanced modules can be licensed à la carte or can be bundled together in the form of an "industry suite", which is a pre-packaged set of features priced more aggressively than if they were licensed separately. The advanced modules range in price from $499/month to $2,999/month and depend entirely on functionality and which Suite Edition you require.
For example "NetSuite Manufacturing - Mid-Market Edition" which includes CRM and ERP and several advanced modules like Advanced Inventory, Demand Planning, Manufacturing WIP & Routing and Work Orders & Assemblies cost $4,499 per month is designed for companies that need to license 11-1000 employees. Another example of a pre-packed Industry Suite called "Retail OmniChannel Starter Suite" that offers CRM, ERP as well as SuiteCommerce Advanced (Ecommerce Platform) and SuiteCommerce InStore (POS) for $4,599 per month is designed for companies that need to license 1-15 employees.
The advanced modules range in price from $499/month to $2,999/month and depend entirely on breadth of functionality and which Suite Edition you require. (For a list of included modules and advanced modules see the table below)
Also, keep in mind customers can also license just NetSuite CRM+ or just NetSuite Financial Management. Its not uncommon to see organizations choose to not license CRM+ especially when they have invested heavily in applications such as Salesforce. One of the great things about NetSuite is that its open architecture and modular approach allows companies to add and remove modules as the business demands it and take advantage of best of breed applications and integrate as they see fit.
NetSuite CRM+
NetSuite CRM+ (Included)CRM Advanced Modules
Customer Relationship ManagementIncentive Compensation ManagementMarketing Campaign AutomationAdvanced Partner Center
Sales Force Automation
Case Management
Partner Relationship Management
NetSuite ERP
NetSuite ERP (Included)ERP Advanced ModulesERP Advanced ModulesERP Advanced Modules
Financial Management
Advanced FinancialsManufacturing WIP & RoutingNetSuite WMSItem Management
Advanced InventoryMulti-book AccountingTribeHR (HRIS)Order Management
Advanced ProcurementSuiteAnalytics Connect (ODBC)SuiteCommerce AdvancedProcurement
Advanced SoftwareNetSuite OneWorldSuiteCommerce InStoreProject Management
Contract RenewalsAdvanced Project TrackingAdvanced Project AccountingEmployee Center
Demand PlanningAdvanced BillingNetSuite SiteBuilderFixed AssetsResource AllocationNetSuite Financial PlanningGrid Order ManagementRevenue RecognitionAdvanced Manufacturing Work Orders & Assemblies Get A NetSuite License Estimate 2. The User Licenses
NetSuite licenses its software based upon named users not concurrent users. A user license is $99 per user per month. A user license would be required for user personas such as a Controller, Sales Manager, Director of Operations, Customer Service Representative or Account Payables Manager, essentially anyone transacting in the system on a routine basis would require a user license.
Additionally, there are other user licenses for users who perform limited tasks within NetSuite's "Employee Center" activities such as time entry against a project, enter/view/track accrued PTO or enter/view/track expense reports, these are referred to as "Self-Service Users" and are priced five for the price of one, so a five pack would be $99 per five employees per month.
For users requiring read only access there are a few options. First, there isn't a user license type to be able to login to NetSuite and view and drill down into reports and dashboards however you can bring NetSuite data into Excel or other 3rd party applications via ODBC or you can schedule and distribute reports to non-licensed users via native NetSuite reporting functionality.
Your NetSuite Solution Provider will help you determine the types and quantity of each user license you may require and when to license them.
3. NetSuite Support
NetSuite offers
three different levels of support, Silver, Gold and Platinum. These support packages are priced based on a percentage of your annual contract value.
Silver Support is designed for companies that have limited support needs during business hours and can initiate support cases online and supports up to two named contacts. Silver Support does not offer phone support option at this time. Silver Support is ideal for companies that have a dedicated NetSuite Administrator that can trouble shoot most issues in a timely fashion.
The next level up is Gold Support which provides 24x7 support for high severity issues with toll-free access from most countries and is limited to 4 named users. Gold Support is great for larger NetSuite customers with lots of users and do not have a dedicated NetSuite Administrator on staff to troubleshoot issues as they arise.
Lastly, Platinum Support is designed for large enterprises provides 24x7 support with a dedicated support team and supports up to six named users. This premium level of support is reserved for NetSuite's largest and most demanding customers that require 24x7 global support with a dedicated staff.
Keep in mind, customers who work with NetSuite's direct sales team must purchase one of the three NetSuite support options. Whereas, customers who license through a NetSuite Solution Provider generally purchase some type of support agreement through their NetSuite Solution Provider. For many companies having the Solution Provider provide support is the ideal scenario since they will have the most familiarity of your NetSuite instance and business.
NetSuite support gets mixed reviews, I’ve had clients express they receive little value for the investment and others claim NetSuite support to be just right for their needs. By working with a NetSuite Solution Provider they will be able to provide you with a support recommendation that makes sense for your business needs and one that fits within your budget.
4. Other Considerations
Software Subscription Duration: Like other SaaS applications NetSuite is completely subscription based therefore the application can be subscribed to for as little as 12 months or much longer. A longer subscription term (e.g. 36 months) tends to make sense for most customers, providing predictability of future software spend. Do keep in mind if you go with a shorter subscription term expect to see annual price increases in the 5-12% range at the time of the renewal. Your Solution Provider should be able to provide ways to keep your subscription cost predictable over the long term.
NetSuite SandBox (Development & Test): NetSuite offers the option for customers to license a Sandbox account which is a copy of their production instance. Sandbox is generally licensed as a percentage of your annual contract value depending upon duration of the Sandbox account. For example, a 12 month Sandbox account is generally 20% of the list price of your annual contract value. A NetSuite Sandbox is ideal for clients or consultants to develop customizations (SuiteScript & SuiteFlow) in an account that will not impact your day to day operations of your production instance. Your Solution Provider will provide guidance as to when and for how long, you might require a SandBox account.
Dedicated Service Tiers (Performance): NetSuite is always deployed in a public cloud environment that is
maintained by NetSuite in a
multitenant environment however sometimes larger customers require greater control, throughput and scalability which means they may be a candidate for
NetSuite's premium service tiers. NetSuite offers three different service tiers (Tier 3, Tier 2 and Tier 1). These dedicated service tiers offers customers their own dedicated database storage instance as well as greater flexibility of NetSuite updates release dates. In conjunction with data center premium tiers NetSuite also offers SuiteCloud Plus licensing for high-traffic customers to increase throughput for customers with high transaction volumes. SuiteCloud Plus increases the number of queues available for scheduled scripts, queues and threads available for CSV import jobs and concurrent threads for web services. Your NetSuite Solution Provider can provide guidance around these options in greater detail and will determine if you require it.
Software Subscription Agreement: Keep in mind that a NetSuite license subscription will always be on NetSuite paper. We as a Solution Provider are your dedicated resource that will advocate on your behalf to ensure you are getting a great NetSuite license subscription. Think of the relationship as a co-selling agreement in which you the client get the best of both worlds, both access to a NetSuite badged employee as well as an independent consulting firm looking out for your best interest. At the time of signing the NetSuite License Subscription Estimate you will also be required to sign a Software Subscription Agreement which are terms and conditions you agree to during the duration of the contract. Review this document with your NetSuite Solution Provider to ensure there are no future surprises.
Payment Terms: NetSuite will generally invoices in 12 month increments Net 30 however they can make exceptions, please understand to get better terms you may need to sacrifice on discount, therefore if your goal is to preserve cash and seeking a monthly or quarterly payment we have
NetSuite experienced finance partners we recommend to assist with leasing both the software and professional services. This will ensure you get both the best possible discount from NetSuite and get the payment terms you are seeking.
Timing: If you weren't already aware of this, I will let you in a little secret... software companies love to negotiate a new license contract at month, quarter and especially year end. I'm not suggesting waiting till the end of a year to make a purchase but if the timing works out its a great time to negotiate a new license subscription ;-)
Keep in mind the subscription fees mentioned in this post are all list prices, 99.99% of customers do not pay list price, however the amount you pay will be entirely dependent upon how well you can negotiate, if you would like assistance negotiating a NetSuite License Agreement we're just one email or phone call away. We welcome the opportunity to serve you in the process of obtaining your NetSuite license subscription, click the Blue button to get your NetSuite License Estimate.
Get A NetSuite License Estimate
