Introduction
Because the capabilities of Microsoft Dynamics 365 vs NetSuite integration sounds so similar, comparing the two can be misleading. You can use this article to decide if Microsoft Dynamics 365 or NetSuite is a better fit for your company.
Overview of Microsoft Dynamics 365
Microsoft’s operating systems, commercial productivity tools, and — eventually — its database solutions powered the company’s growth in the 1980s and 1990s. By the early 2000s, it moved into business applications, albeit through two significant acquisitions: that of corporate and midmarket ERP suppliers Great Plains and Navision A/S.
Microsoft rebranded Great Plains’ systems as Microsoft Dynamics GP and Microsoft Dynamics SL. All of these products already offered a range of solutions, some of which were added through acquisitions of their own. The Navision A/S products are now known as Microsoft Dynamics NAV and Microsoft Dynamics AX.
It was some time later that Microsoft finally formulated a cloud ERP strategy, resulting in offering two choices to users: Microsoft Dynamics 365 Business Central and Microsoft Dynamics 365 Finance.
Overview of NetSuite
Built in 1998 by Oracle founder Larry Ellison and entrepreneur Evan Goldberg, who used to work for the company, NetSuite was the first cloud-based business solution. What began as an online accounting program would grow over the years to add more features in an attempt to fulfill Goldberg’s vision of having one platform through which all operations of a company could be run.
Native to NetSuite are inventory and order management, analytics, CRM, HR, PSA, and more applications. It was always offered on an ERP system that is delivered as software as a service with division at the database level of data for all users and shared software version and infrastructure.
This exceptional performance for just cloud software as a provider has kept NetSuite on the radar, first to go public in 2007 and later on be acquired by Oracle for $9.3 billion in 2016. With nearly 25 years since it debuted, more than 37,000 users of NetSuite—all in the cloud—are using the service.
Microsoft Dynamics 365 vs NetSuite: Feature Comparison
There are some critical differences between Microsoft Dynamics 365 vs NetSuite that only customers can notice. These features are mentioned below:
NetSuite vs Dynamics 365 Finance
System Architecture
The key difference between Microsoft Dynamics 365 vs NetSuite lies in the methodology both vendors employ in constructing their solutions. Since its inception, NetSuite has been operating on a multitenant cloud, providing each client with an individual tenancy—a space where only instances and data related to NetSuite are located.
All of our customers are automatically upgraded to each new release—twice a year—so you’ll always have the best of what’s new, with important security improvements. System upgrades happen automatically and retain any customizations to your system.
The architecture of Microsoft Dynamics 365 Finance is built upon a redesigned on-premises program that isn’t designed to upgrade automatically and often. Because of this, some users are reluctant to update to the newest version for fear that it will destroy their bolt-on apps and integrations.
This could indicate that, although paying for these frequent updates through their yearly membership costs, not all clients are using the same version of the program.
Finance
Dynamics 365 Finance gives strong accounting, financial management, and financial reporting capabilities. Similar to NetSuite, it offers real-time financial data and reporting. However, the process of reporting often requires third-party applications or external Microsoft products to be utilized, such as Power BI.
Dynamics 365 Finance offers subscription billing and sophisticated revenue recognition, which is particularly pertinent to many software and services organizations, through Microsoft’s licensing agreement with a third party.
On the other side, enhanced revenue recognition and subscription billing are natively supported by NetSuite’s core financials.
Reporting Analytics
The main advantage of an ERP system is that it is a centralized source of corporate data. This makes it possible for organizations to monitor performance and maximize their resources with the aid of clear, comprehensive reports. An large collection of prebuilt reports and dashboards for various roles and functions are included with NetSuite.
To get new insights, non-technical users can easily build new reports. Through SuiteAnalytics, another feature of NetSuite that provides more sophisticated data analysis capabilities, it’s simple to go deeper into data and find business insights. Data on finances, customers, products, and services can be extracted straight from the ERP system and added to SuiteAnalytics.
For the purpose of delivering data visualizations, dashboards, and financial reports, many clients rely on creating their own reports and integrating Dynamics 365 Finance with other programs, most notably Microsoft Power BI. However, keep in mind that Power BI is a technical tool, and creating bespoke reports takes system knowledge.
Configurations and Customizations
Finding staff with experience in system setup and management is a frequently neglected part of choosing an ERP system. Many of those problems were resolved by the SaaS ERP model, which did away with the requirement for an IT personnel to manage the servers, software, and data centers because all hosting requirements, patches, and upgrades are taken care of by the SaaS provider.
Furthermore, NetSuite has adopted a “clicks not code” strategy, enabling non-technical users to customize buttons, custom reports, and custom fields to fit their needs without the need for programming. The Java-based SuiteCloud platform from NetSuite offers developers a recognizable platform for more complicated requirements. Since Java has been around for more than 20 years, there is a sizable pool of knowledgeable experts.
Customizing Dynamics 365 Finance frequently calls for more advanced coding skills and expertise. It makes use of the well-liked C# language and is built on the.NET and SQL frameworks. Users who are familiar with the previous X++ language also benefit from its legacy Axapta backbone.
The cost of ownership may increase if more technical resources are required to customize the system to meet your demands. Given Dynamics 365 Finance’s complex history over the past 20 years, there is also concern that developers will need to comprehend both the old and the new technological parts of the product.
Integrations
Different Dynamics 365 modules use different codebases. The CRM module is not built on the same codebase as the Dynamics 365 Finance platform because it was mostly developed by Microsoft itself, as opposed to substantially relying on purchased technology.
This indicates that it has a distinct user interface and operates as a stand-alone application. To transfer data and carry out operations between the finance and other Dynamics 365 apps, customers must use Microsoft’s Dataverse middleware.
Because NetSuite is designed on a single codebase, customizations are made easier, and middleware is not required. Customers no longer have to test such customizations with each new version, which further streamlines the upgrade process.
NetSuite vs Dynamics 365 Business Central
The following features separate Microsoft Dynamics 365 Business Central from NetSuite:
System Architecture
Similar to Dynamics 365 Finance, the present solution is impacted by Business Central’s on-premises legacy. This implies that not every customer is using the same version of the program, in contrast to NetSuite. Customers of Microsoft who still use outdated versions may be losing out on important security improvements, increasing the danger to their vital data and procedures.
Additionally, they pass up on upgrades to the system and new features that could improve the effectiveness of their operations. Some consumers will only be able to upgrade to newer versions with the assistance of paid consultants or internal staff in the interim.
Revenue Recognition
With NetSuite’s revenue recognition capabilities, customers may identify revenue in accordance with both US GAAP and IFRS globally, regardless of whether a transaction comprises a single action, a sequence of actions spread over time, or various deliverables bundled together.
The revenue recognition capabilities of Business Central are restricted and are frequently enhanced by third-party extensions or integrations. For software and service providers that depend on subscriptions and have to recognize income over time, this feature is very crucial.
Billing
In the case of Microsoft Dynamics 365 vs NetSuite, billing functionality is much more developed in NetSuite as compared with Dynamics 365 Business Central. This would be further enhanced by additional automation in invoicing within NetSuite through a module called SuiteBilling, which extends basic financial functionality within the system.
To give clients the flexibility they need, businesses can effortlessly integrate promotions, volume discounts, customer-specific pricing, and flat, tiered, and consumption-based alternatives. To further streamline billing, it also supports a variety of pricing structures and intricate rating scenarios.
Intercompany Consolidation
For businesses set up this way, Dynamics 365 Business Central frequently presents additional challenges when handling multi-subsidiary and multinational consolidations, requiring the use of external tools or human labor. Organizations with international operations need to localize their content in separate instances on different databases.
Consolidations are normally best handled by third-party programs made for Business Central; however, using external tools usually requires connectors, which adds costs and potential issues. It might be necessary to hire technical assistance with specialized experience to set up this procedure in Power BI, which would cost additional money and time.
Because of this, multi-entity reporting and consolidation are significantly more difficult than they are in NetSuite.
The unified platform from NetSuite allows regional business units or subsidiaries to construct unique account charts while maintaining a uniform general ledger structure at the corporate level. Locally recorded transactions are automatically mapped to the parent account and posted there with the appropriate exchange rate and currency.
Businesses with several subsidiaries and a global presence don’t have to worry about purchasing third-party software or integrations.
Microsoft Dynamics 365 vs NetSuite Integration Capabilities
NetSuite Integration Capabilities
Financial Systems: Seamless integration with accounting software, payment gateways, and banking systems for efficient financial management.
E-commerce Platforms: Integration with popular e-commerce platforms like Shopify, Magento, and WooCommerce to synchronize product data, inventory, and order processing.
CRM Systems: Integration with CRM platforms like Salesforce, HubSpot, and Zoho to manage customer data, sales pipelines, and marketing campaigns.
Supply Chain Management: Integration with warehouse management systems (WMS), transportation management systems (TMS), and third-party logistics providers (3PLs) for optimized supply chain operations.
HR and Payroll: Integration with HRIS systems and payroll providers for employee data management, time and attendance tracking, and payroll processing.
Business Intelligence (BI) and Analytics: Integration with BI tools like Tableau, Power BI, and Oracle Analytics for data-driven decision-making.
Microsoft Dynamics 365 Integration Capabilities
Office 365: Seamless integration with Office 365 applications like Outlook, Word, Excel, and Teams for enhanced collaboration and productivity.
Power Platform: Integration with Power Automate, Power BI, and Power Apps to automate workflows, analyze data, and build custom applications.
Azure: Integration with Azure cloud services for data storage, analytics, and AI capabilities.
CRM and ERP Systems: Integration with other CRM and ERP systems for data synchronization and process automation.
IoT Devices: Integration with IoT devices to capture real-time data and insights.
Third-Party Applications: Integration with various third-party applications for specific business needs.
Scalability and Performance
NetSuite offers flexibility and a comprehensive solution, allowing it to enjoy a greater market share and service a wide array of industries and business institutions of all sizes. Microsoft Dynamics 365, which holds less market share, manages to make the most of the already solid name of Microsoft in the enterprise solution space to provide good financial management capabilities, especially to small and mid-sized enterprises.
NetSuite vs Dynamics 365 Pricing and Total Cost of Ownership (TCO)
NetSuite Pricing
NetSuite uses a subscription-based business model, with prices varying based on user volume, type, and need for add-on modules as well as contract length and other services.
Base license: The monthly cost of NetSuite’s base license is around $999.
User license: A monthly fee of around $99 is charged per user. Full users, usually for managers or supervisors who want full access to the system, and Limited users, usually for employees who only need limited access, are the two types of user licenses that NetSuite offers.
Advanced features and modules: If you require advanced features or modules, there will be additional fees. Depending on the particular feature or module, these can have rather different pricing.
Microsoft Dynamics 365 Pricing
In Microsoft Dynamics 365 vs NetSuite, Dynamics 365 price is quite modular, you can only purchase the particular programs you require.
App licenses: The price of a single application can range from $20 per user per month for Dynamics 365 Sales Professional to about $120 per user per month for more complete solutions and beyond.
User licenses: Dynamics provides “full” licenses for users requiring full access to the capabilities as well as less expensive “Team Member” licenses for those requiring only the most basic functions.
Bundles: Microsoft additionally provides discounted app bundles, such as the Dynamics 365 Customer Engagement Plan.
Additional Cost: Similar to NetSuite, there can be additional charges for things like setup, personalization, assistance, and training.
Conclusion
The key distinctions between Microsoft Dynamics 365 vs NetSuite are not in the functionality of the ERP packages per se but rather in the ways that their platforms integrate with office productivity tools and artificial intelligence.
Two noteworthy developments from Microsoft are the expansion of Copilot’s capability and the compatibility of Business Central with Microsoft 365. Dynamics 365 can be the best option for you if you want to de-risk your future growth, customize a solution for your company, and utilize the rest of the Microsoft stack.
However, NetSuite might be the best option if you want to use a different office stack, like G Suite, or if you want your ERP to match your procedures to an already-existing standard.
Get in touch with us at Folio3 if you’d like to discuss NetSuite integration and receive guidance specific to the technical and strategic circumstances of your company.
