We all know it's really hard to get good pricing and cost information.
Please share what you can so you can help your peers.
It is completely on a subscription basis. We pay yearly and, and you do not have to do anything on a monthly basis. Prices depend on the organization's scale and all those things, but they are doing a good job with the pricing.
NetSuite has developed new approaches to the market in the last few years. When people buy ERP, it's a competitive situation and the pricing is paramount. People don't want to spend a lot of money upfront on that type of thing — as if we blame them. What NetSuite has gone to, is something called the finances first approach. It says, let's come in. Let's have a small footprint in the organization. We can get a company up and running on the core financials and use it in the business office for about $50,000, which compared to a lot of ERP systems, is very low cost. From there, we start to stair-step the project up to increase the functionality that they're using and increase departments that are on the system. What happens is, when people start using the system, they start understanding the system. They began to learn how to roll out these other functions with their own internal people. They learn to adopt the tool, they understand how it works. Now, you're not saying, "We need this new $30,000 module. It's going to be $100,000 in consulting hours to implement it". It's more like, "We need this $30,000 module, and we may spend $10,000 on outside consultants to help us do it ourselves". That type of thing. There are two things that happen. One, you get instant success because you've got the system up and running and people are beginning to adopt it. They like it, it's successful, it's a valuable tool. That's the first win. The second win is if you get to grow the system. Now that you're using it, you understand it. This is how it's going to be easier for these people to do their jobs. This is how we can put efficiency into our inventory area, or we can put efficiency into our supply chain group, or we can help out our field service reps with information on an iPad. This is how we're going to do that — it helps people. Instead of this instant digital transformation, it's this continual rollout of better and better technology. When they see the results that a client likes, the service levels better, it makes a lot more sense. It's so much easier than this big, huge two-year implementation that some of these software providers come at the client with. That's a hard decision for any company to make. "We're going to be doing this, and we're not totally sure that it's going to work for us. But what if our people don't like using it; aren't there are a lot of things that could go wrong?" Then they just sit there with paralysis by analysis. When they can sit there and say, "Okay, we can start this, this NetSuite rollout. We can get the accounting office on it. We'll be up and running in 90 days, we're going to have better reports. We're going to have better financials. We're going to have all this stuff, we're going to have all these instant wins. How do we get 10% more out of the sales this year? How do we get drive costs down next year?" You've got all of these projects that you can expand your company on moving forward.
Licensing costs are all over the place. It really depends a lot on the business model. How many seats, what modules they're getting, and what kind of discount you can negotiate all will adjust the cost structure in different ways. The discounting can range, depending on what's compelling to that model. For example, I bought these two stevedoring companies and they're old companies, they're longshoremen. They've been doing longshoremen work since clipper ships. The systems tend to be old. Nobody had ever really put a stevedoring company on NetSuite before. When I went to NetSuite to negotiate for them, I was able to get okay pricing. There's a pretty broad opportunity if we get one or two of these done. NetSuite was willing to get me a very deep discount in that case. It depends on the deal. The numbers are all over the place.
I'm looking at the following products: Deltek CostPoint and Oracle NetSuite ERP. Can you suggest any side-by-side comparison or anything similar?
This would be very helpful to me. Thanks.
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