Microsoft Dynamics vs NetSuite: Which is the Best ERP?

Microsoft Dynamics vs Netsuite, which is the Best ERP Software for your Business? Let’s compare the features & pricing!

What are Microsoft Dynamics and Oracle Netsuite?

Microsoft Dynamics and Oracle Netsuite are the leading comprehensive business management solutions for small and mid-size businesses. While Business Central made an early entry into the market with its first predecessor, Navision, in 1993, NetSuite made its debut in 1998.

Moreover, both these ERP software have been highly competent since 2018, when Microsoft released Dynamics 365 Business Central.

1) Microsoft Dynamics 365 Business Central:

Business Central is an all-in-one native-cloud business management solution. It caters to over 15,000 businesses and is witnessing a 200% YoY growth. The software offers an intuitive and modern browser-based experience.

2) Oracle NetSuite:

Netsuite is a comprehensive cloud-based business management solution. It combines the capabilities of ERP and CRM solutions and caters to over 16,000 businesses across 200 nations. Akin to Business Central, the software is priced to appeal the small and mid-sized businesses.

So, let’s witness the Microsoft Dynamics vs Netsuite battle based on certain key parameters.

Microsoft Dynamics vs Netsuite: Which is a Better ERP?

1) Pricing and Licensing Costs:

Microsoft Dynamics 365 Business Central

• License: Business Central offers a subscription (Pay per month) and Perpetual (One-time payment) license options.
• Pricing: Business Central costs approx. $70/ per user per month. You can also add Team Member users.
• Implementation Pricing: It depends upon the modules and features you choose to implement. But the implementation cost of Business Central is considerably lower than Oracle NetSuite.
• Monthly Billing: You enjoy optimum flexibility owing to the monthly subscription plan.
• Additional Cost: You receive automatic updates for the cloud deployment and the subscription license without additional costs. Moreover, the backup for the cloud-hosted Microsoft Dynamics 365 Business Central is managed by Microsoft Dynamics Partner.

Oracle NetSuite

• License: It offers an Annual Subscription license model.
• Pricing: NetSuite hasn’t mentioned a flat price for the annual license. The pricing estimates are $999/month + $99/per user per month.
• Implementation Pricing: Oracle hasn’t mentioned the implementation price publicly. But, a credible source states that the single-module implementation begins at $25,000. Meanwhile, the pricing costs between $90,000 to $100,000 for a mid-size organization.
• Annual Billing: NetSuite users need to buy an annual subscription to the software. Moreover, users report a 10% increase in Year-on-Year prices.
• Additional Cost: NetSuite is modular and highly customizable software. But as you scale, you need to pay extra for newer modules.

Also Read: Dynamics 365 Business Central Pricing

Key Learnings

When we draw an overall pricing comparison for Microsoft Dynamics vs Netsuite, the former costs more than Business Central for almost the same capabilities.

2) Customer’s Experience:

Microsoft Dynamics 365 Business Central

Oracle NetSuite

Key Learnings

Both Oracle NetSuite and Microsoft Dynamics are preferred for their comprehensive ERP features and superior finance management functionalities. Both the software suffice the need for a manufacturing software, service management software, or a Retail ERP.

However, Business Central enjoys a lead with Microsoft’s connected apps approach. Business Central offers compatibility with Power BI, Office 365, and other valuable Microsoft Apps.

3) Software Updates:

Microsoft Dynamics 365 Business Central

• Microsoft launches two major updates (in April and October) for Business Central every year.
• The updates include new features, performance enhancement, and user-experience changes.
• Dynamics 365 Business Central customers can expect automatic updates with cloud hosting. Check – Business Central On-premises vs Cloud.
• Major UX changes aren’t updated automatically; the customer can test these changes and enable them.

Oracle NetSuite

• NetSuite witnesses two major updates every year in Feb/March and Aug/September.
• Customers can expect improved functionality and performance enhancement with new updates.
• You need to request your implementation partner to test these updates and integrate them.

Key Learnings

Both Microsoft Dynamics and Netsuite offer bi-annual upgrades. You can expect automatic upgrades for Business Central. Meanwhile, your implementation partner helps you check and integrate updates for Oracle NetSuite.

4) Customization:

Microsoft Dynamics 365 Business Central

• You can customize Business Central by building custom extensions, adding 3rd party apps through Microsoft AppSource, or advanced object-level customization (for on-premise hosting).
• Your Microsoft Dynamics Implementation partner can use Visual Studio to customize your Business Central UI according to your specific business requirements.
• Microsoft AppSource is free to use for Microsoft Dynamics 365 Business Central users.

Oracle NetSuite

• You can customize NetSuite through its SuiteCloud Platform.
• SuiteCloud allows customers to build custom apps and customize their dashboards.
• However, customers need to pay extra for SuiteCloud. And many customers claim that it is hard to use without dedicated training from Oracle. This two-day course costs up to $1600.

Key Learnings

Microsoft generously offers free access to AppSource, where you can find free Extensions for your Business Central Setup. Meanwhile, you need to get paid access to SuiteCloud if you wish to customize NetSuite.

This remains one important parameter when comparing Microsoft Dynamics vs Netsuite.

5) Integrations:

Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 has a clear advantage over NetSuite when it comes to integrations.

It integrates seamlessly with various Microsoft apps and useful 3rd party apps.

Oracle NetSuite

NetSuite allows integration to 3rd party apps through SuiteApps. It also shows some compatibility with Google Apps, SAP, and Salesforce.

Key Learnings

Businesses using other Microsoft apps or products might love to collaborate with Business Central. Meanwhile, Oracle NetSuite is a little stiffer with 3rd party app integrations.

6) Free Trial Option:

Microsoft Dynamics 365 Business Central

• You can avail of a 30-day Free Trial of Business Central by connecting with Certified Microsoft Dynamics 365 Consultants.
• Explore the free trial using the loaded sample data or importing your business data.
• Microsoft Business Central’s free trial allows you to invite other users to explore the application.

Oracle NetSuite

• You can visit Oracle’s partner channels for a 30-day Free Trial of NetSuite.
• It allows you to import your business data to explore the Free Trial.
• NetSuite offers you complete access to the application in the free trial period.

Key Learnings

Both Microsoft Dynamics vs Netsuite offers a 30-day free trial. And you can invite new users and scrutinize the software with your data.

Microsoft Dynamics vs Oracle Netsuite Comparison Table

Key Takeaways for “Microsoft Dynamics vs Netsuite”

A major difference between Dynamics 365 Business Central and Oracle NetSuite lies in the customization cost.

Dynamics 365 Business Central offers access to AppSource and allows integration with 3rd party apps. You can easily customize the functionality, add extensions, and customize the interface for your business.

You do not have to pay an additional cost for Designer and Visual Studio and sandbox environments.

Meanwhile, NetSuite customizations are managed through SuiteCloud and SuiteApps. There is an additional fee for using these platforms and the sandbox environment.

Further, Microsoft Business Central allows easier integrations with useful Microsoft and other 3rd party apps. Plus, if you compare the costs of implementing Microsoft Dynamics vs Netsuite, the former is more affordable.