The demand for cloud-based ERP solution is rapidly growing is evident from the market share it has captured and will continue to in the coming years. According to a report published by Allied Market Research, the global ERP software market was valued at 35.81 billion dollars in 2018 and is projected to reach 78.40 billion dollars by 2026. Now more than ever, the switch to efficient remote working capabilities powered by software that enables businesses to grow and scale has become paramount.
With a market inundated with options, we help you break down what sets apart the two most prominent competitors in the market: NetSuite and Microsoft Dynamics 365. We will deep-dive into the features, so that you are better equipped with making the right choice for your business even though both solutions have a host of similarities.
NetSuite v/s Microsoft Dynamics 365 ORIGIN STORY
NetSuite allows high-growth mid-sized companies to automate their front-end and back-end process through a unified system that runs on a single database and single code base providing quicker access to data along with seamless updates. Thanks to built-in business intelligence, NetSuite provides cloud financials, CRM, ecommerce, HCM and professional services automation management.
NetSuite has also been a leading multi-tenant ‘true cloud’ ERP provider for many years with the backing of more than 40,000 customers and seal of approval from Gartner (global research and advisory firm). Plus, NetSuite’s SuiteCloud platform provides necessary tools and framework which can be customised by customers, partners and software developers to meet specific business needs. These customisations are available through each biannual update.
Microsoft Dynamics 365 was introduced in 2018, although it had an earlier version that was called ‘Project Madeira’ or ‘Tenerife’ in 2016, built on the NAV code base which is not entirely compatible with Business Central apps. For optimised functionality, legacy SL, NAV and GP customers considering the switch to dynamics will need to clear a ’12 Step Process’ to work through the new system. Even though the latest version (Microsoft Dynamics 365) is touted as having incorporated a multi-tenant architecture, Dynamics 365 remains single tenant on-premise software which requires the use of a middleware layer to integrate it with other Microsoft applications.
NetSuite v/s Microsoft Dynamics 365 FEATURES
Financial Management Features: Decoding various features both solutions offer into five key areas.
NetSuite: Accounts payable and receivable; General ledger; Multi-currency; Fixed assets; Multi-company and consolidation; Revenue recognition; Subscription billing; Forecasting and budgeting; financial planning.
Microsoft Dynamics 365: Accounts payable and receivable; General ledger; Multi-currency; Fixed assets; Forecasting and budgeting.
Supply Chain Features:
NetSuite: Order management; Product management; Inventory management; Procurement; Warehouse and fulfilment; Demand planning; WIP and routing; Work orders and assemblies; Shop floor control and BOM maintenance.
Microsoft 365 Dynamics: Order management; Procurement, Inventory management; Quality management; Demand forecasting; Agile manufacturing; Product configuration.
Human Capital Features:
NetSuite: Human resource management; Payroll management.
Microsoft Dynamics 356: No capabilities.
NetSuite: Point of sale; Ecommerce; Order and inventory management; Product content management; Commerce marketing automation.
Microsoft Dynamics 365: No capabilities.
PSA (Professional Services Automation) Features:
NetSuite: Project management; Resource management; Timesheet management; Expense management
Microsoft Dynamics 365: Project management
NetSuite v/s Microsoft Dynamics Pricing And Scalability
The implementation costs for Microsoft Dynamics 365 can be a lot more than the cost of software licences. Hardware, middle-ware, infrastructure, database licenses and implementation fees cause significant spike in expenditure and may not be suitable for your business in the long run. Each upgrade is paid for individually. While thinking of scale, at the time of using Microsoft Dynamics one needs to be cognisant of multiple products (for switch up) which invariably give rise to gaps and delays, stalling seamless transition to the next level.
NetSuite’s cloud-based ERP costs however are much lower and more competitive. As a user one can easily and hassle-free access their systems, navigating through a host of features and experiences integrated into the software to make sure your business remains future-proof. It also supports business demands as you scale by turning on feature sets without a complete system overhaul.
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