In the first installment of our series on Acumatica vs. Oracle NetSuite, we compared the implementation processes of the two ERP software solutions. In this second entry, we will turn our attention to a subject that is top of mind for all organizational leaders: costs.
Choosing the solution that provides optimal pricing transparency is critical for all organizations, but it is particularly important for small to medium-sized businesses. SMBs simply do not have the information technology resources or financial flexibility to contend with volatile and unpredictable ERP software operating costs.
At first glance, one would assume that both Acumatica ERP and Oracle Netsuite have similar pricing models. This assumption is founded on the fact that both technologies are cloud-based Software as a Service (SaaS) solutions that use subscription licensing-based billing models.
While the billing models of both software suites are quite similar, the transparency levels they provide are very different.
Counting the Cost of NetSuite vs. Acumatica
If you read our first Acumatica vs. Oracle NetSuite article, then you know that NetSuite’s pricing practices are well-known for their lack of transparency. To briefly recap, NetSuite frequently offers heavy licensing fee discounts to new customers in order to incentivize them to adopt the ERP software.
The downside is that these discounts are only accessible during the initial contract. When it comes time to renew the service contract, all of those discounts will disappear.
Many new NetSuite customers experience price increases up to 50% or higher when they renew their contracts. While opting for a longer contract term during the initial agreement can help you extend those discounted rates, you will also be beholden to Oracle NetSuite for an extended period.
This vendor lock can become a major pain point if you experience some of the implementation challenges that are common for new NetSuite customers.
Even if you are satisfied with NetSuite’s performance and purported pricing, be prepared to pay more than the listed fees. NetSuite may add a few surprise licensing charges to your bill. For instance, you can incur extra charges if you conduct an “excessive” amount of transactions or attempt to add seasonal users.
Another common concern with NetSuite is that many auxiliary features are packaged in separate service bundles. If you decide that you want to access solutions beyond Financial Management or CRM, you will need to purchase additional bundles. This requirement can cause your costs to far exceed initial projections.
Brett Davis, Operations Manager at Bob Davis Sales, was evaluating Acumatica and NetSuite based on high reviews by magazines such as PC Magazine.
“Acumatica’s unlimited pricing structure was a big factor,” says Davis. “With NetSuite, we knew we would be dealing with Oracle (NetSuite’s new parent) and felt its pricing would be going up, knowing how large companies operate.” Davis also knew as the oil and gas industries rebounded, Bob Davis Sales would be adding to its 15-person team, and thus NetSuite’s per-user pricing would escalate.
Acumatica Cloud ERP Software: Transparent, Customer-Centric Pricing
Acumatica ERP software was one of the first solutions available with resource-based pricing. This setup speaks volumes about Acumatica’s commitment to its clients and the transparency of its pricing practices.
The Acumatica team has also created a Customer Bill of Rights, which is designed to protect customers from unexpected service agreement changes and exorbitant price increases.
Whereas Oracle NetSuite offers per-user pricing and then tacks on resource usage fees, Acumatica provides clients with access to consumption-based pricing. This setup allows clients the freedom to add as many or as few users as necessary while also paying for only the resources they are consuming.
Thanks to Acumatica’s resource-based pricing model, you can easily add or subtract users throughout the year. This setup gives you added flexibility when bringing in temporary or seasonal employees, scaling up operations during peak season, or making other organizational changes.
Additionally, Acumatica ERP offers user-based discounts. The more users you add to your ERP software, the lower your cost per user becomes.
The transparency of Acumatica’s billing model makes it easy to analyze the cost of your ERP software investment. It ensures that you have the financial flexibility necessary to pursue growth opportunities and support core business processes.
Learn More About Acumatica vs. NetSuite Pricing, Deployment, and Implementation
If you are interested in an ERP software solution that will exceed your expectations while also aligning with your budget, Acumatica is the perfect software for your business.
To learn more about this exciting opportunity to implement the top ERP software on the market, connect with a Gold Certified Acumatica Partner like Cloud 9 ERP Solutions. At Cloud 9 ERP Solutions, we help businesses just like yours modernize their enterprise resource planning processes. Schedule a demo to get started today.
Also, check out our full Acumatica vs. NetSuite Evaluation guide or the additional articles in this series below.
Evaluating Acumatica vs. NetSuite Series
Evaluating Acumatica vs. Oracle NetSuite: Partner Ecosystem
