Are you ready to take your business to the next level of efficiency and productivity? Look no further than enterprise resource planning (ERP) software. However, with so many options on the market, selecting the right platform can feel overwhelming. Don't fret! In this ERP buyers guide, we'll pit two of the most popular choices against each other: NetSuite and Microsoft Dynamics (Dyn365BC). We'll explore their standout features and capabilities, leaving you with a clear understanding of which one is the perfect fit for your unique business requirements.
NetSuite and Microsoft Dynamics 365 Business Central are both subscription-based cloud ERP solutions that are designed to help small and mid-sized businesses scale and grow. These platforms offer a range of tools and features to streamline operations and improve efficiency, making them an ideal choice for companies looking to take their business to the next level.
Microsoft Dynamics 365 Business Central is a cloud-based enterprise resource planning (ERP) solution that was introduced in the spring of 2018. Initially referred to as "Project Madeira" or "Tenerife," Business Central is Microsoft's latest offering in the ERP space, and is marketed as the company's first-ever cloud-based ERP product. However, despite being touted as a multi-tenant architecture solution, it's worth noting that Dynamics 365 Business Central is built on the Microsoft Dynamics NAV code base.
While Dynamics 365 Business Central can be deployed on-premise, it's designed to run in the cloud, allowing businesses to take advantage of the scalability, flexibility, and cost savings associated with cloud computing. The solution is hosted on the Microsoft Azure cloud platform and is built to be highly adaptable, with businesses able to customize the solution to meet their specific needs.
One of the key benefits of Dynamics 365 Business Central is its ability to integrate with other Microsoft applications, such as Dynamics CRM, Power BI, Microsoft Flow, Cortana, and more. However, in order to do so, the solution requires the use of a middleware layer referred to as the Common Data Service. This integration capability allows businesses to streamline their workflows and gain valuable insights into their data, leading to increased efficiency and better decision-making.
Overall, Dynamics 365 Business Central offers businesses a modern, cloud-based ERP solution that is highly adaptable and capable of meeting a wide range of business needs. Whether deployed on-premise or in the cloud, the solution's integration capabilities, scalability, and flexibility make it an attractive option for businesses looking to optimize their operations and gain a competitive edge in their market.
NetSuite has been a leading multi-tenant "true cloud" ERP provider for several years and boasts the support of over 40,000 customers and industry analysts like Gartner to prove it. On the other hand, Dynamics 365 Business Central falls short in comparison, with several key differences that make it a less attractive choice for businesses looking for a cloud-based ERP solution.
One of the biggest advantages of NetSuite is its SuiteCloud platform maturity. This platform provides customers, partners, and software developers with the necessary tools and framework to customize NetSuite to meet specific business needs. Customizations and extensions are available and supported through each biannual update, giving businesses the flexibility to adapt to changing market conditions and customer demands. In contrast, Business Central lacks the same level of customization capabilities, causing frustration among Microsoft partners and customers alike. Businesses that have previously invested in NAV add-on products may find that they do not work with Business Central and will require complete redevelopment to take advantage of the cloud-based solution.
In addition, legacy SL, NAV, and GP customers considering the migration to Dynamics 365 Business Central will have to endure a complicated "12 Step Process" to take advantage of the new system. This so-called "upgrade or migration" is far from simple and is more akin to a new ERP implementation, requiring significant time and resources to complete.
Overall, while Business Central may offer some benefits for small to medium-sized businesses, it pales in comparison to NetSuite's true cloud ERP solution. NetSuite's SuiteCloud platform maturity and robust customization capabilities make it a better choice for businesses looking to optimize their operations and gain a competitive edge in their market.
While Microsoft Dynamics 365 Business Central is a powerful cloud-based ERP solution, there are several functional weaknesses to consider when comparing it to NetSuite. First and foremost, reporting capabilities in Business Central are limited, with pre-built reports offering few filter options and no ability to drill down to specific transactions. While external solutions like Power BI can help fill this gap, implementing them through a partner can add extra time and cost for businesses.
Another challenge is that Business Central is not designed to be a multi-country solution, lacking native financial consolidation capabilities. This requires businesses with subsidiaries in multiple countries to set up separate databases for each location, which can add complexity and cost to the implementation process.
Additionally, the platform's single subsidiary and database posting process can cause issues for businesses with multiple subsidiaries, necessitating a time-consuming month-end reconciliation process. Customization is also challenging in Business Central, as it requires a developer to make changes using Visual Studio, often resulting in extra costs from partner support. Finally, Business Central lacks native support for revenue recognition, subscription billing, and payroll, forcing businesses to rely on third-party applications for these essential functions.
Microsoft Dynamics 365 Business Central is an all-in-one business management solution that helps companies connect their financials, sales, service, and operations to streamline business processes, improve customer interactions and make better decisions
NetSuite ERP is a complete Cloud ERP solution, which automates front and back-office processes like financial management, revenue management, fixed assets, order management, billing, and inventory management and more. With NetSuite ERP, companies can scale their businesses as they grow and streamline mission-critical processes.
Short answer 5 years. Microsoft Dynamics 365 Business Central was released on April 2, 2018.
Short answer 25 years. NetSuite was first released in 1998 as NetLedger, a web-based accounting software for small businesses. The company was later renamed to NetSuite, and the software has evolved to become a cloud-based enterprise resource planning (ERP) system. NetSuite was acquired by Oracle Corporation in 2016.
Unknown. Microsoft does not publicly disclose the exact number of customers using Dynamics 365 Business Central. However, according to Microsoft's latest earnings report, the Dynamics 365 suite, which includes Business Central as well as other Dynamics 365 applications, had over 220,000 customers as of the end of June 2021. It's worth noting that this number includes customers of all Dynamics 365 applications and not just Business Central. Additionally, Microsoft Dynamics 365 Business Central is a relatively new product, having been released in 2018, so its customer base may not be as large as some other ERP solutions that have been around for a longer time.
As of September 2021, Oracle NetSuite has over 26,000 customers in more than 215 countries and territories. These customers come from a range of industries and business sizes, from small and medium-sized businesses to large enterprises. NetSuite has a global presence and has been recognized as a leading cloud-based ERP solution, with a strong reputation for its financial management, inventory management, and e-commerce capabilities. It's worth noting that this number may not include all customers who use NetSuite indirectly through partner channels, as Oracle does not publicly disclose this information.
No Capabilities
Microsoft requires a year-long contract; renewed annually.
NetSuite requires a year-long contract; renewed annually.
Additional fees apply for professional services such as implementation, integration, customizations, data migration and support.
Additional fees apply for professional services such as implementation, integration, customizations, data migration and support.
Annual recurring fees for the software subscription
Annual recurring fees for the software subscription.
Through Partner
Direct or through Partner
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Available during regular business hours
24/7 toll-free worldwide phone support available
Live and/or online training available by Microsoft partners.
Live and/or online training available by NetSuite training department and by partners.
Microsoft offers a limited online knowledge base as well as an online user group.
NetSuite has an extensive knowledge base known as SuiteAnswers available to all users as well as online user group.
While Microsoft Dynamics 365 Business Central offers some useful features and benefits, such as a native connection to LinkedIn and integration with other Microsoft business applications like Office, Power BI, and Cortana, there are several concerns that may give businesses pause. With relatively few live and referenceable customers, Dynamics 365 Business Central remains an unproven ERP solution. Additionally, Microsoft has announced that it will no longer provide feature and benefit enhancements for legacy SL, NAV, and GP applications, leaving businesses with no clear path for future growth. Finally, Dynamics 365 Business Central is best suited for small businesses with limited complexity, which may force larger and more complex organizations to look elsewhere for a scalable solution.
On the other hand, NetSuite is a proven, cloud-based ERP solution that can work for businesses of all sizes on a single platform, with over 26,000 customers and the backing of industry analysts like Gartner. NetSuite offers robust features and capabilities, including advanced customization options and native support for revenue recognition, subscription billing, and payroll. Plus, with a range of support options and ongoing feature enhancements, NetSuite is a reliable and future-proof choice for businesses looking to streamline their operations and scale their growth. If you're considering an ERP solution for your business, we strongly recommend exploring NetSuite as your top choice. Try NetSuite for yourself with a free trial and discover how it can transform your business today.