NetSuite Exposed -
Products & Pricing

The NetSuite ERP software includes a CRM system, accounting system, supply chain management, manufacturing, human resources and an e-commerce storefront.

NetSuite is a browser based (thin client) application. In general terms, SaaS systems are delivered over the Internet to users’ web browsers from a centrally hosted data center. SaaS largely eliminates the costs associated with installing and maintaining business applications within the customer’s IT infrastructure. SaaS systems are typically licensed for a monthly or annual subscription fee instead of the larger up front capital investments required of the more traditional on-premise enterprise applications. As a result, the costs related to software, hardware, implementation services and perpetual IT labor are significantly less with an on demand solution.

NetSuite bundles their enterprise software into a number of solution suites. The flagship products are NetSuite (the company’s name is used as the product’s name) and NetSuite CRM+.

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The NetSuite solution fulfills back office operation processes, including accounting, distribution, human resources, payroll and light manufacturing. NetSuite is loosely targeted to a broad range of industries, but best accommodates SMB. The NetSuite CRM+ solution includes Sales Force Automation (SFA), marketing automation, customer support and service management and partner relationship management tools. The solution also includes sales order management, basic ERP and e-commerce capabilities and several value-added functions such as incentive management, project tracking, Website hosting and basic CRM analytics.

NetSuite is less than forthcoming when it comes to being transparent about complete pricing and the number of up-sell solutions that require additional investment. However, in general terms, software fees (in USD) are as follows:

• NetSuite Small Business begins at $99.00 per month (includes 1 full user and 10 limited access users and $49.00 per user per month for additional full users)
   
• NetCRM begins at $79.00 per month (includes 1 full user with additional users charged at $79.00 per user per month)
   
• NetCRM+ begins at $129.00 per month (and includes 1 full user with additional users charged at $129.00 per user per month). This edition includes sales order management, up sell and cross-sell, project tracking, partner relationship management (PRM) and limited Web site hosting capabilities.
   
• NetSuite with NetERP™and NetCommerce™ begins at $399.00 per month (which includes 1 full user and 10 limited access users with additional users charged at $99.00 per user per month.

The number of NetSuite add-on products which require additional investment is not known. One NetSuite business partner commented that there were as many as 200 product SKUs each with individual pricing. The more common and often necessary add-on products include the following:

• Commissions Management – available for NetCRM & NetSuite at $199 per month
   
• NetCommerce Site Builder – available for NetSuite at $199 per month
   
• NetCommerce Analytics – available for NetSuite at $199 per month
   
• UPS Integration – available for NetSuite Small Business and NetSuite at $199 per month
   
• Advanced Inventory – available for NetSuite at $199 per month
   
• Advanced Financials – available for NetSuite at $199 per month
   
• Revenue Recognition – available for NetSuite at $449 per month

Netsuite ERP buyers would be well advised to carefully review NetSuite’s software license agreement and each of the terms in the service agreements since it is not uncommon to discover additional charges for data storage and various other items that can unexpectedly increase the ERP total price.

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NetSuite also charges additional fees to customers who desire to communicate with a support person in order to resolve their issues or problems. The company offers various levels of customer service programs, including:

• NetCARE Silver offers telephone and email support during normal business hours. NetSuite’s stated goal with this program is to respond (not necessarily resolve) to all support emails within two business days. This program costs 22.5% of the net license amount.
    
• NetCARE Gold delivers telephone and email support during normal business hours, email support during weekends and priority queuing of Gold customers. NetSuite’s stated goal with this program is to respond (not necessarily resolve) to all email incidents within one business day. This program costs 27.5% of the net license amount.
    
• NetCARE Gold 24/7 provides telephone and email support 24 hours per day, seven days per week. NetSuite’s stated goal with this program
  is to respond (not necessarily resolve) to all email incidents within one business day. This program costs 32.5% of the net license cost.
   
• NetCARE Platinum support provides a dedicated customer support representative and 24/7 extended coverage. This customer support program costs 37.5%of the net license cost.

Originally priced at a low $4.95 per month per user, NetSuite has a history of continual significant price increases which results in considerable resentment within the user base. In relative terms, NetSuite is priced well above comparable on-demand competitors like Intacct and Aplicor however much lower than traditional on-premise software competitors like Microsoft, Sage and Epicor.

NetSuite sells its product with a direct sales force and through indirect business partner channels. The company has offices and business partners in North America, Latin America, Europe and the Asia Pacific region. The majority of product sales come from NetSuite’s inside sales professionals over the telephone. This provides a very economical model for selling to the SMB market; however, it doesn’t always meet the needs and buying habits of more sophisticated middle market and enterprise companies. NetSuite continues to strengthen its international growth strategy. In March 2006, NetSuite created a majority-owned subsidiary in Japan, NetSuite Kabushiki Kaisha (NetSuite KK). This subsidiary is owned with minority partners TCI, MJS and Inspire Corporation. TCI and MJS are exclusive distributors for the on-demand application suite throughout Japan. 

Free: Complete Report – NetSuite Exposed