Oracle NetSuite vs Microsoft Dynamics
Cloud ERP – It’s Here to Stay
Cloud business software is rapidly becoming a necessity for most modern companies. Particularly organisations that are chasing growth, streamlined processes, and efficiency.
Beyond the pandemic requiring businesses to optimise their systems and processes for a more digital-centric operation, a shift towards cloud business software has been happening for quite some time. To put this into context, here are some recent stats:
53% of IT leaders in a recent survey identified ERP as an investment priority.
50% of companies are soon acquiring, upgrading, or planning to update ERP systems in the short-term.
The overall cloud ERP market is projected to be valued at $78.4 billion by 2026.
Oracle NetSuite vs Microsoft Dynamics 365
When in the process of researching cloud ERP systems, Oracle NetSuite and Microsoft Dynamics 365 are market leaders for reasons which will be discussed in this blog.
What’s the difference? Which is better? Which should you invest in?
These are all valid questions.
Without further ado, let us begin comparing Oracle NetSuite and Microsoft Dynamics 365 to help you reach an informed decision…
Features Comparison
NetSuite is the #1 Cloud ERP in the world. Its’ features can be segmented into eight components:
Accounting
Fixed asset management
Payment management
Demand planning
Manufacturing
Billing management and invoicing
Inventory control and warehouse management
Purchasing and vendor management
| Component | Features |
|---|---|
| Accounting | Audit trail, Visibility, Tax Management, Procure-to-Pay, Order-to-Cash |
| Fixed Asset Management | Workflow Management, Flexible Depreciation Management Fixed Asset Roll Forward, Integrated Financial Reporting |
| Payment Management | Flexible payment Acceptable, Fraud Prevention, Flexible Payment Processing, Global Ready |
| Demand Planning | Gross Requirements Inquiry, Supply Chain Intelligence with MRP, Demand Planning Engine |
| Manufacturing | Shop Floor Management, Manufacturing Routing, Product Costing, Bill of Materials, Materials Resource Planning |
| Inventory Control and Warehouse Management | Inventory control, Inventory Visibility, Order Fulfillment, Cost Management |
| Billing Management and Invoicing | Flexible Billing Scheduling, Shipping and Fulfillment, Integrated Process Workflow, Recurring Revenue Management, Revenue Recognition Management, NetSuite TribeHR, Payroll services, Incentive Compensation Management, Core HRIS, Human Capital Management |
| Purchasing and Vendor Management | Centralized Vendor Management, Integrated Process Workflow, Routing and Approval |
On the other hand, Microsoft Dynamics 365 can be segmented into five components:
Financial management
Human resources management
Business intelligence and reporting
Workspace collaboration
Supply chain management
| Component | Features |
|---|---|
| Human Resources Management | HRM Self-Service Suite, Human Resources Unlimited Employees, Unlimited Employees for Payroll (US and Canada only), Federal Magnetic Media, Payroll Direct Deposit, Payroll Connect, Position Control |
| Financial Management | Payables, General Ledger, Cash Flow Management, Receivables, Intercompany, Fixed Asset Management, Analytical Accounting, Multi-currency Management, National Accounts, Electronic Bank Management, Electronic Reconciliation Management, Cashbook Bank Management, Safe Pay, Bank Reconciliation, Encumbrance Management, Refund Checks, Grant Management, Lockbox Processing, Customer/ Vendor Consolidation, Account Level Security, Revenue/Expense Deferrals, Field Level Security |
| Business Intelligence and Reporting | Unlimited Management Reporter Viewer User, Unlimited Management Reporter Designer User, Analysis Cubes Library |
| Workspace Collaboration | Unlimited business portal |
| Supply Chain Management | Invoicing, Sales Order Processing with Advance Invoicing, Time and Expense, Extended Pricing, Requisition Management, Landed Cost, PO Generator, Purchase Order Processing/Receiving, Bill of Materials, Order Management, Inventory Control |
From a functionality standpoint, NetSuite’s ERP is the superior option. The broader offering enables you to manage the entirety of your business in one place, without relying on other tools to fulfil other functions such as Manufacturing.
Although this broader offering may not seem like a necessity based on where your company is today, committing to an all-encompassing ERP such as NetSuite will allow for system longevity. For example, in 3 years’ time you may require additional tools to fulfil future needs. You can seamlessly activate the relevant functions with NetSuite as opposed to investing in additional software.
This means that you can rest knowing your long-term investment is more secure with NetSuite, giving you peace of mind to grow and adjust without the concern of software that holds you back.
Pros and Cons
Pros: NetSuite ERP
For multi-national companies, NetSuite’s ERP enables you to operate in multiple languages and currencies. Even if becoming a multi-national organisation is a part of your future strategy, it is worthwhile investing in an ERP with this functionality in the short term. This will make the process significantly more seamless.
NetSuite offers an impressive level of flexibility. You can access your dashboard via any device from anywhere in the world (Windows, Mac, mobile, etc.). In a world where remote working is a normality, this is invaluable and allows you to always remain operational.
As previously discussed, NetSuite has an impressive range of functionality which allows you to run the entirety of your business in one platform. You can access all the role-specific data you need in real-time to fuel strategic decision-making.
As NetSuite is in the cloud, IT costs are substantially lower than a traditional system. IT costs are reduced by up to 75% in fact. This allows you to invest in other growth-fuelling activities e.g. marketing.
It is home to the #1 cloud financial management software. In a world where reporting errors and time-consuming data entry is among us, this is a huge benefit for companies seeking reliability and automation within their financial processes.
Pros: Microsoft Dynamics
Similar to NetSuite, Microsoft Dynamics’ ERP has a powerful, role-specific insight that allows additional information tracking.
Through RapidStart services, you can get your system live in a short space of time.
With it being a Microsoft product, you can seamlessly integrate Microsoft packages such as Word and PowerPoint. This can also be done with NetSuite but requires additional work which can be done through our integration platform, Unio.
Cons: NetSuite ERP
The user interface isn’t as aesthetic as Microsoft Dynamics. It can be more difficult to navigate in the beginning. It places a larger emphasis on functionality and practicality.
The support from NetSuite operates in different time zones and at various levels which may cause frustration for users. However, our team offers industry-leading NetSuite support which aims to combat any issues which arise with a fast turnaround.
Cons: Microsoft Dynamics
Critics argue that the architecture is outdated. It certainly lacks the same scope of offering that NetSuite does. This makes it the inferior option for an all-encompassing ERP solution.
The software comes with significant hidden costs. Although this may not phase larger companies with money to burn, it is a barrier for many companies. NetSuite is the more cost-effective solution when you look at the total cost of ownership over the years of service it can provide your business.
The Winner
Having discussed the features as well as pros and cons for each solution, the winner is…
Oracle NetSuite.
Of course, we are a NetSuite partner, and use NetSuite daily which makes us somewhat bias. HOWEVER, our recommendation is driven by analysis, our personal use, and the experience of our clients. We attribute our rapid growth over the last 10 years to NetSuite’s power. Since day one, 3EN has run NetSuite internally, and doing so has meant that we live and breathe what we sell.
We know how it works, not only theoretically, but also practically. The level of scalability and longevity of NetSuite as a solution has been a key part in providing us with scalability and flexibility without the pain of ever worrying about outgrowing our software.
In saying all of this, we aren’t biased because we are a partner. We are biased because we are a client. Our faith in NetSuite comes from our experience in using it on our own business rather than anything else. We run everything on NetSuite; there are no additional software requirements which makes our business 100% streamlined.
If you have any questions about what has been discussed in this blog, or would like to learn more/get a demo of Oracle NetSuite, simple click the button below: