Posted on March 22, 2019

Microsoft Dynamics 365 vs NetSuite ERP: A comparison of features and capabilities

Evaluating and implementing an ERP solution is a fairly complex engagement for a Small and Medium Enterprises (SME) business due to the investment of time and corporate resources required for a successful outcome. Depending on the scale and usage, an ERP implementation can cost thousands to millions of dollars.  It’s critically important to get it right.

We speak with a number of SMEs that evaluate both Microsoft Dynamics 365 and NetSuite as potential ERP solutions for their organization. We also hear horror stories from SMEs that have made the wrong decision, often as a result of conducting insufficient research or missing out on important factors in the long term success of the implementation.

We thought it would be helpful if we shared our insights to help SMEs avoid similar situations. Ideally, SME’s should consider the selection of the ERP based on a number of factors including product modules and their alignment with their requirements, scalability, implementation ecosystem, pricing, integration, upgrades, future proofing capabilities, etc.

If you are comparing Microsoft Dynamics to NetSuite, here are some important factors to consider.

Microsoft Dynamics 365 vs NetSuite

ScalabilityMicrosoft Dynamics in general has more features and functionalities which may appeal to an SME as it grows in size and operations, especially if customizations and integrations with third parties are required.NetSuite provides scalability through a range of standard features; new features can be added on, but the set of features has some limitations as does their customization.
UpgradesDynamics 365 uses a single-tenant architecture and the client is not forced to accept and install all the latest updates.  Updates can be tested in a staging environment to ensure there is no business impact prior to launching production.NetSuite updates are rolled out for all clients and clients do not have a choice whether to apply them because of the multi-tenant architecture. This is irrespective of the fact that they may be detrimental to their current business use due to their unforeseen impact.
Future ProofingThis is one of the most important yet often overlooked part in the evaluation process. Dynamics benefits from a robust product roadmap courtesy Microsoft’s extensive investments and focus on research and development. The ever-evolving AI capabilities in Dynamics are expected to revolutionize the ERP ecosystem as we know it.NetSuite lacks a clear roadmap and a product evolution framework, especially after its acquisition by Oracle.
Business Intelligence and AI CapabilitiesDynamics leverages on Microsoft’s Power BI tool to offer advanced Business Intelligence capabilities. It also possesses AI features that leverage the power of Microsoft AI research, tools, data, and the Power Platform to help organizations transform the customer service, sales, and marketing functions. It also features a progressive Machine Learning and AI enabled digital assistant.NetSuite does not offer native features for these capabilities.
ReportsDynamics has a drag and drop interface to allow non-technical users to build reports without coding.Creating custom reports is a challenge in NetSuite because there is no user-friendly interface like Dynamics.  A developer is often required for reports.
PricingMicrosoft Dynamics has a fairly transparent perpetual and subscription licensing structure that is published online.NetSuite doesn’t explicitly publish their pricing structure.  Instead, they customize their quotes for each client making it difficult to know if you are getting the best price.
System Integrators, Resellers, and Overall EcosystemMicrosoft Dynamics 365 has a very robust reseller and system integrator network, ensuring your implementation has the right level of support.NetSuite usually sells directly to the end customer and provides remote support.  There is a limited partner and integrator ecoystem.
User InterfaceDynamics has a very intuitive and contemporary user interface.NetSuite’s interface can appear dated and difficult to use by modern standards.
IntegrationDynamics benefits from its out of the box integration with Outlook and Office.NetSuite lacks native integration capabilities with third party products.

While NetSuite offers a great on-demand ERP product suite, its lack of flexibility for customizations, lack of BI and AI capabilities, and an uncertain future after its acquisition can be a concern for an SME’s who are looking for a holistic and robust offering.

Dynamics on the other hand is a future-proofed ERP solution backed by the foresight and investments of Microsoft and a strong reseller/system integrator network. Given its value-added consultation and implementation methodology, Dynamics should be the ERP platform of choice for an SME.

Microsoft Dynamics 365 vs NetSuite ERP

Still not convinced?

The question between Dynamics 365 vs. NetSuite is a simple one for any small business looking to improve their resource management.

Korcomptenz offers complete assistance right from initial assessment study to final roll-out.

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