NetSuite vs. SAP Business ByDesign: Which ERP Solution Is Right for Your Business?

Small and mid-sized businesses (SMBs) and mid-market organizations looking for a cloud-based ERP solution often find themselves comparing Oracle NetSuite and SAP Business ByDesign (ByD). Both platforms promise to streamline operations, enhance financial management, and support growth.

NetSuite has been a pioneer in cloud ERP since its inception, offering a fully multi-tenant cloud-native platform renowned for its scalability and flexibility. ByDesign, SAP’s cloud-only ERP solution, gained traction for its manufacturing capabilities and tight integration with other SAP tools. However, declining investment and a limited roadmap have raised questions about ByDesign’s long-term viability.

This article focuses on the comparison between NetSuite and SAP Business ByDesign. For a broader discussion on NetSuite vs. SAP solutions, including S/4HANA and Business One, visit our comprehensive NetSuite vs. SAP guide.

NetSuite and SAP Business ByDesign Feature Comparison

NetSuite: NetSuite delivers a unified, cloud-native ERP system that integrates financials, inventory, HR, CRM, and more into a single platform. Since its inception, NetSuite has consistently led the market by delivering a comprehensive SaaS solution designed for scalability and flexibility, ensuring businesses can adapt and grow seamlessly. Its SuiteFlow tool allows businesses to create robust, automated workflows across departments without the need for coding expertise. With built-in capabilities for multi-entity financial consolidation, NetSuite excels in helping fast-growing businesses streamline global operations.

SAP Business ByDesign: SAP Business ByDesign offers strong industry-specific functionality, particularly for manufacturing and production-focused organizations. However, its long history of inconsistent development—including pauses in investment and updates—has left its customer base limited to around 3,000 users globally, primarily in services and manufacturing. Its workflow automation, while functional, is limited in scope and lacks the flexibility of NetSuite’s tools. ByDesign integrates well with other SAP products, such as SuccessFactors for HR and Ariba for procurement, making it appealing to businesses already embedded in SAP’s ecosystem. However, its reduced development focus post-2023 limits innovation and updates.

NetSuite Customization and Flexibility vs SAP Business ByDesign

NetSuite:
NetSuite offers unmatched flexibility through its SuiteCloud platform, empowering businesses to customize workflows, dashboards, and reports with tools like SuiteFlow and SuiteScript. SuiteFlow’s visual, drag-and-drop interface makes it easy for nontechnical users to automate cross-department workflows, while SuiteScript enables advanced customizations tailored to unique business needs. These features enable even non-technical users to tailor the system to meet unique business requirements. Customizations remain intact during system updates, ensuring a seamless experience without additional costs or reimplementation.

SAP Business ByDesign:
While SAP Business ByDesign supports customization, its capabilities are more limited and often require reliance on SAP-specific tools or external consultants. Customization within ByDesign is tied to the SAP ecosystem, which may restrict flexibility and increase dependency on third-party services. Additionally, updates may disrupt existing customizations, leading to higher maintenance costs and potential delays in operations.

Best Fit Industries for NetSuite and SAP Business ByDesign

NetSuite: NetSuite’s scalability and robust functionality make it an excellent fit for a wide range of industries, including retail, SaaS, professional services, and wholesale distribution. Additionally, its OneWorld module provides multi-entity support for businesses operating across multiple geographies, offering real-time insights and compliance with local regulations. For example, SaaS companies benefit from NetSuite’s built-in subscription billing and revenue recognition, while professional services firms rely on its project management and resource allocation tools.

SAP Business ByDesign: SAP Business ByDesign is best suited for mid-market organizations in manufacturing and production environments. Its strong industry-specific features, such as advanced MRP and integration with SAP tools like Ariba and SuccessFactors, make it a solid choice for businesses already invested in SAP’s ecosystem. For instance, small to mid-sized manufacturers can leverage ByDesign’s shop floor integration for streamlined production planning. However, its limited roadmap and reliance on partners for support may deter businesses seeking long-term innovation.

Deployment Options

NetSuite: NetSuite is a fully cloud-native ERP solution built from the ground up as a multi-tenant SaaS platform. Its cloud-first design ensures accessibility from anywhere, seamless updates, and zero reliance on on-premises infrastructure. Businesses benefit from its ability to support a globally distributed workforce with reliable performance and minimal IT overhead. Additionally, NetSuite’s architecture allows companies to easily integrate with third-party tools, enabling flexibility and faster adoption of new technologies. This makes it an excellent choice for organizations seeking a modern, low-maintenance ERP system with robust global capabilities.

SAP Business ByDesign: SAP Business ByDesign is also a cloud-only ERP solution. While it delivers a SaaS experience, its single-tenant architecture relies on SAP’s ecosystem for updates and maintenance. This model provides businesses with a degree of control over their environments but comes at the cost of flexibility. Updates may require intervention from SAP or its partners, and scalability is constrained for companies with complex, multi-subsidiary operations. Moreover, connecting ByDesign with non-SAP systems often requires middleware like SAP Integration Suite, which increases cost and implementation time. This design can limit flexibility compared to NetSuite’s multi-tenant model, particularly for businesses looking for global scalability and rapid innovation.

SAP ERP Scalability Compared to NetSuite ERP

NetSuite: NetSuite is designed for businesses of all sizes, from startups to enterprises managing billions in revenue. Its multi-tenant architecture ensures seamless scaling as companies grow, whether by expanding operations, adding subsidiaries, or handling increased transaction volumes. With automatic updates and consistent performance, NetSuite supports long-term growth without the need for major reimplementation.

SAP Business ByDesign: SAP Business ByDesign offers moderate scalability, suitable for mid-sized businesses with steady growth. However, its reliance on SAP Integration Suite middleware for connecting to non-SAP systems and its limitations in supporting complex multi-subsidiary environments may hinder organizations aiming for rapid expansion. However, its architecture may struggle to support businesses undergoing rapid expansion or managing complex multi-subsidiary operations. Companies seeking to scale globally may find ByDesign’s capabilities limited, requiring additional investment in third-party tools or migration to a more advanced SAP solution.

Reporting and Analytics Functionality 

NetSuite: NetSuite’s SuiteAnalytics provides real-time dashboards, drill-down reporting, and customizable visualizations, empowering teams to make data-driven decisions. With integrated financial consolidation and no need for third-party tools, NetSuite delivers actionable insights across departments. Its robust analytics capabilities are particularly valuable for companies managing multi-subsidiary operations or handling complex financial reporting.

SAP Business ByDesign: ByDesign includes basic reporting tools and dashboards but lacks the real-time depth and flexibility of NetSuite’s SuiteAnalytics. Advanced analytics often require integrations with SAP Analytics Cloud, adding complexity and cost. Furthermore, ByDesign’s reporting is primarily designed for mid-sized businesses with simpler financial and operational needs, limiting its effectiveness for larger, data-intensive enterprises.

NetSuite vs SAP Pricing Comparison

Choosing the right ERP solution requires understanding the total cost of ownership (TCO). Here's how NetSuite and SAP Business ByDesign compare:

• NetSuite: Transparent pricing model with predictable costs, even as businesses scale. Includes updates, sandbox access, and customization capabilities.
• SAP Business ByDesign: Marketed as all-inclusive but often incurs hidden expenses, such as middleware, consulting fees, and additional licenses, significantly increasing TCO over time.

Oracle Long-Term Support and Innovation Compared to SAP

NetSuite: Backed by Oracle, NetSuite receives consistent investment and innovation, with two major updates annually. Its ecosystem is further strengthened by a global network of Solution Provider (SP) partners, many of which offer support options similar to NetSuite’s Advanced Customer Support (ACS). One notable example is Techfino’s ContinuedSuccess program, an ACS alternative that provides tailored support for NetSuite users, including optimizations, troubleshooting, and training. Learn more about ContinuedSuccess here.

This dual-layered support system—from both NetSuite and its Solution Providers—gives businesses flexibility and ensures consistent system performance. Its ecosystem is further strengthened by a global network of Solution Provider (SP) partners, many of which offer support options similar to Oracle’s Advanced Customer Support (ACS). These partners provide tailored assistance, ensuring that businesses can access expert guidance for system optimizations, troubleshooting, and training. This dual-layered support system—from both Oracle and its Solution Providers—gives businesses flexibility and ensures consistent system performance. Its commitment to enhancing existing features and introducing new functionalities ensures that businesses always have access to a cutting-edge platform. Moreover, NetSuite’s direct vendor relationship means users benefit from streamlined communication and support.

SAP Business ByDesign: SAP’s reduced focus on ByDesign since 2023 raises significant concerns about its long-term viability. ByDesign relies heavily on a partner-driven support model, which can lead to variability in service quality and availability. For businesses, this means the success of their ERP support often hinges on the capabilities and expertise of their chosen partner. While SAP continues to provide security updates and compliance-related fixes, the absence of new functionality and the reliance on external partners can create challenges for long-term innovation and consistent system scalability. While SAP continues to provide security updates and compliance-related fixes, no new functionality is being developed. For businesses seeking continuous innovation and support, this limitation could hinder long-term success. SAP’s reliance on external partners for implementation and customization further complicates ongoing system support and scalability.

Which ERP is Best?

Choosing between NetSuite and SAP Business ByDesign depends on your business’s priorities and long-term goals. NetSuite stands out for its scalability, advanced financial management tools, and customization capabilities, making it a robust solution for fast-growing organizations and multi-subsidiary operations. ByDesign, while strong in manufacturing and SAP ecosystem integration, faces challenges in scalability, customization, and future innovation.

For businesses seeking expert guidance in selecting and implementing the right ERP solution, Techfino is here to help. Our team specializes in evaluating your unique needs and ensuring a seamless transition to a platform that drives your business forward. Contact us today to start your ERP journey.

Choosing between NetSuite and SAP Business ByDesign depends on your business’s priorities and long-term goals. NetSuite stands out for its scalability, advanced financial management tools, and customization capabilities, making it a robust solution for fast-growing organizations and multi-subsidiary operations. ByDesign, while strong in manufacturing and SAP ecosystem integration, faces challenges in scalability, customization, and future innovation.

For businesses seeking expert guidance in selecting and implementing the right ERP solution, Techfino is here to help. Our team specializes in evaluating your unique needs and ensuring a seamless transition to a platform that drives your business forward. Contact us today to start your ERP journey.