Businesses are increasingly recognizing the value of an ERP system that operates in the cloud and are feeling the urgency to upgrade. Companies realize that their outdated practices no longer meet the demands of the modern business environment. As a result, they are taking proactive steps to lay a strong foundation for future business expansion and success. This NetSuite vs. SAP Business One comparison aims to highlight both the similarities and the distinct features offered by these advanced business software solutions.
To deliver the clarity, visibility, flexibility, and agility required for growth, organizations must modernize their entire IT infrastructure. This article examines key aspects and functionalities of NetSuite and SAP Business One. Hosted cloud solutions are often unable to meet the evolving demands of businesses today and in the future. SAP Business One is a traditional legacy program that has been re-engineered for the cloud. It operates through a browser-based interface, utilizes a single-tenant hosted solution, and is limited by a complex IT setup that frequently disrupts business operations.
Modern SaaS systems enable a unified data model, which enhances decision-making. According to Gartner, “Cloud is the single most influential technology in IT today.” More than half of all global organizations currently using cloud services were expected to adopt a fully cloud-based approach by early 2022.
Businesses that embrace a cloud-first strategy benefit more from the application’s architecture than from its individual components. To support faster deployments, ease of use, and reduced risk in the cloud, organizations have been able to lower costs while improving speed, reliability, scalability, and total cost of ownership. Cloud-based ERP solutions empower companies to respond swiftly to market changes.
But What is a Better Option: NetSuite or SAP?
ERP software like SAP and NetSuite is intended to automate corporate procedures like inventory control, accounting, and customer relationship management. Although there are some obvious variations that prospective customers should be aware of, they are comparable in many aspects.
In terms of technology, SAP has some trying to catch up to. Although both SAP and NetSuite now provide cloud-based ERP software, SAP’s cloud services abilities have been available for around nine years, while NetSuite has been a market leader in cloud ERP for over 20 years.
Let us understand if SAP is better than NetSuite on a deeper note:
NetSuite
It was created in 1998 and has been a cloud-based application ever since. It contains features for financial management, inventory management, HR management, ERP, CRM, PSA, and eCommerce. NetSuite offers seamless, rapid mobile access with easy integration with current software. It allows advanced customization and offers instantaneous analytics along with rapid and simple mobile access. Not just that, NetSuite also offers simple integration and a variety of add-ons. Due to its wide range of benefits, it is ideal for any size business, whether it is a large international organization or a small local business.
SAP
In 2012, the company began to provide a cloud-based version of its software. Initially, it was developed as an in-house option. However, the easy-to-use user interface made SAP quite popular. Is NetSuite good for small businesses? Yes, it allows access to mobile devices, but it is not directly through SAP, therefore it may be intermittent. Further, SAP has the capacity to integrate and offers instantaneous analytics, but with certain restrictions.
There are different types of SAP:
- SAP Business One: The first SAP software, SAP Business One was designed especially for small business owners. Initially solely available as an on-premise solution, SAP now offers cloud deployment. It is advised for consumers between 5 and 100.
- SAP Business By Design: This is the mid-market ERP software package from SAP, and cloud deployment is the sole option available. For businesses needing 20–1,000 users, SAP Business by Design is the best option.
- SAP S/4HANA: The most sophisticated piece of software in the group, SAP S/4HANA is an enterprise solution that offers superior analytics, AI, and machine learning capabilities to its competitors. Businesses can improve every area of manufacturing, income, and even sustainability initiatives because of their automation capabilities.
Oracle NetSuite vs SAP Business One
Here are the major points of distinction between NetSuite and SAP:
1. On the basis of Deployment:
The way that NetSuite and SAP are deployed differs significantly. At first, SAP Business One could only be deployed locally. In order to give clients more flexibility and innovation for their corporate software needs, SAP Business One was published in the cloud in 2012.
Contrarily, NetSuite has always been an ERP system that runs on the cloud. Being essentially the first cloud software firm, NetSuite has implemented and maintained cloud software solutions for over 18,000 clients since 1998, solidifying its position as the industry leader in cloud ERP.
Bottom line: Since its history as a cloud software solution, NetSuite tends to be simpler to adopt because partners have the requisite expertise to establish an efficient yet thorough implementation process. However, NetSuite often has a quicker time to go live. Of course, the overall implementation date for any ERP software relies on the modifications required by your company.
2. On the basis of Integration
Any ERP system must have an easy way to integrate with third-party applications and providers. From pre-built APIs like SuiteTalk to unique integration features made possible by RESTlets, NetSuite offers a wide range of add-ons and integration choices. Among others, NetSuite offers connectors for Salesforce, Shopify, HubSpot, and Celigo.
On the other hand, because they demand specialized development labor, NetSuite integrations may get expensive. To address everything from billing automation to data integration with PowerBI, the development team at SCS Cloud has developed a full portfolio of pre-built NetSuite solutions. Since they have already been written, integrating them with your NetSuite system is quick and simple.
SAP Business One offers various add-ons and access to its database, but its services fall short of those provided by NetSuite. For SQL-based connections, it does offer access to data and user interface APIs. Shopify, Magento, UPS, MailChimp, and Salesforce are just a few of the pre-configured interface options available for SAP Business One.
Bottom line: NetSuite can be your best option if your company needs modifications or several integrations with specialized software that isn’t on the list of standard integrations. There is no assurance that SAP Business One will have the required integration capabilities even if you chose SAP. Although SAP S/4HANA offers more sophisticated integration capability than NetSuite or SAP BusinessOne, it may end up being significantly more expensive.
3. On the basis of Customization
Compared to SAP Business One, NetSuite has a lot more built-in customization features. NetSuite may be customized to your precise function by changing the home dashboard, reports, saved searches, and many other things. With the aid of a skilled NetSuite partner in Australia, the code may be modified if you want greater customization than what NetSuite permits.
On the other hand, SAP Business One can also modify the code. However, the options are more constrained. Additionally, each user who wants the capacity to produce specific custom reports must purchase SAP Crystal Reports. Software upgrades for SAP Business One can have a detrimental impact on any modifications and integrations done beforehand.
Bottom line: The software and primary dashboard may be customized for both NetSuite and SAP Business One. Some claim that the SAP dashboard is a little more user-friendly than the NetSuite home dashboard, but both let users customize it and make sure that just the information that matters to them is shown. According to user reports, it appears that SAP Business One modifications increase the risk of problems, such as problems with upcoming software updates or disruptions to current workflow operations
Also Read: Best Practices for NetSuite Customization
4. On the basis of Software Features:
NetSuite offers a wide range of functions, such as eCommerce, ERP, PSA, and HR administration. Some of the prime features include Lead management, data analytics, payroll, employee centers, eCommerce order, inventory control, project management, and procurement.
Although SAP Business One contains many of the same functions as those listed above, some essential functionalities are not included and need the purchase of extra licenses. For instance, SAP SuccessFactors and SAP Commerce Cloud are required for integration with online stores.
Bottom line: NetSuite is undoubtedly the superior choice if your company needs sophisticated modifications and add-ons to interact with various applications, providers, or customer data. If you need functionalities like eCommerce and HR Management, SAP Business One might become significantly more expensive. Additionally, as these capabilities are already included in NetSuite, no extra work is required to connect them effectively with their associated data.
5. On the basis of Updates:
NetSuite updates are carried out automatically; thus users have no control over when their software is updated. If a new update breaks particular integrations or customizations, this could be irritating. On the other hand, SAP Business One customers may schedule software upgrades so they can be sure they don’t fall during peak times or business hours and have enough time to prepare. Customizations made to SAP BusinessOne are likely to be affected by updates. Thus users will require the help of developers to restore the program to its pre-update form.
Bottom line: When it comes to software upgrades, SAP Business One gives more freedom. Users of NetSuite have little control over when automated upgrades take place.
6. On the basis of Reporting Capabilities:
NetSuite offers comprehensive customization options and drill-down reports right out of the box. Business owners may make data-informed decisions thanks to its real-time reporting. Additionally, users may create pertinent dashboards and presentations using custom reports and data analytics as needed.
Compared to NetSuite, SAP Business One has additional restrictions despite having very extensive reporting features. SAP Business One needs the SAP Crystal Reports add-on, which adds $495 per user, to get sophisticated customizations, including specific custom reports and dashboards.
Bottom line: The best option here will ultimately rely on your particular reporting requirements. Compared to NetSuite, SAP Business One has additional restrictions, and certain adjustments need the licensing of an add-on.
NetSuite vs SAP Business By Design
SAP Business By Design doesn’t come as completely loaded as NetSuite, similar to SAP Business One. If you want HR administration or eCommerce capability, NetSuite is the better option. To fully utilize all of NetSuite’s functionality with SAP Business By Design, you would need to buy extra licenses for SuccessFactors and SAP Commerce Cloud. As SAP ByD is designed to be an entirely out-of-the-box solution, some customers claim that it is simpler to set up than NetSuite. In the event that your configuration doesn’t require modifications, integrations, or add-ons, this makes installation quick and effective.
One major advantage of NetSuite is its scalability. Whether you have a small local firm with five employees or a large global organization with thousands of employees, NetSuite will easily expand with your business. For SAP to be as effective for your business as NetSuite presently is, extra labor, license fees, and add-ons could be necessary.
NetSuite vs SAP S/4HANA
Enterprise resource planning (ERP) system SAP S/4HANA was developed to offer superior data processing, AI, analytics, and business improvements than any other SAP product. SAP S/4HANA is a powerhouse that can handle all of the software requirements for major businesses. It is one of SAP’s biggest developments in recent years and is now their most costly software. It may be set up on-premises, in the cloud, or as a combination of the two.
According to SAP, the software was created to “assist businesses in adopting new business models” and use predictive AI to boost profits. Additionally, it enhances the functionality of earlier SAP software and offers what may be the most user-friendly SAP ERP to date. While certain customers in specific sectors like SAP S/4HANA over NetSuite, depending on the needs of the organization, it may wind up costing significantly more than a NetSuite setup.
Top 6 Reasons Why NetSuite is Better Than SAP
NetSuite stands out as a modern, cloud-native ERP solution that is simple to use, scalable, and designed to support fast-growing businesses. Compared to SAP, NetSuite offers more flexibility, easier customization, stronger cloud capabilities, and better reporting — all with a user-friendly interface. Let’s see how NetSuite is better than SAP:
1. Easy Customization Without Complex Coding
NetSuite allows users to tailor the system to meet their unique business needs with user-friendly, point-and-click customization tools. In contrast, SAP Business One requires a separate tool (MS Visual Studio) and technical support even for small changes, making it more complex and time-consuming.
2. A True Cloud-Based ERP
NetSuite was built natively for the cloud from day one. Over 29,000 businesses use the same cloud-based version of NetSuite, which offers automatic updates and scalability. According to IDC Marketscape, NetSuite is the global leader in cloud ERP for mid-market companies. SAP, on the other hand, still relies heavily on hosted versions and has only a small number of cloud users.
3. Real-Time Reporting with Drill-Down Capabilities
NetSuite uses a single database, allowing users to generate personalized reports and drill down into details instantly. This means faster access to insights across the entire business. SAP requires an additional software package (SAP Crystal Reports) for custom reporting and lacks the deep drill-down features that come built-in with NetSuite.
4. Predictable, Fixed-Pricing Implementation
NetSuite offers fixed-price implementation packages, helping businesses stay within budget. However, SAP implementations often involve custom builds for each transaction, leading to unexpected costs and delays. Many SAP users run into limitations shortly after implementation and need costly upgrades.
5. Consistent and User-Friendly Interface
NetSuite provides a clean, consistent user interface across all modules. It is easy to navigate and intuitive for all users. SAP has tried to unify its interface but still relies on different tools and products, which can confuse users and make the experience less seamless.
6. All-in-One Solution for Growing Businesses
NetSuite combines ERP, CRM, eCommerce, and real-time dashboards in a single platform. It removes the need for multiple systems and gives complete visibility across operations. Businesses benefit from automation, instant access to data, and the ability to make fast, data-driven decisions without the burden of managing IT infrastructure.
Final Verdict: Which ERP Is Right for You?
There is no one-size-fits-all recommendation for choosing between NetSuite and SAP; the decision depends entirely on your unique requirements. The answer varies according to several factors, including the required integrations, add-ons, modifications, deployment type, and even the partner you select for your implementation.
For SMB and MME-sized businesses, NetSuite is firmly in the driver’s seat, dominating the cloud‑ERP space and steadily increasing its market share. To remain a serious competitor in the industry, SAP had to pursue major acquisitions, as it was never fully focused on mid‑market cloud ERP. On the other hand, NetSuite was built in the cloud from day one. If you’re seeking a true cloud‑based ERP solution, it’s hard to find an alternative that surpasses NetSuite in platform depth, flexibility, ecosystem, and cost.
Still confused between SAP Business One and NetSuite? Looking for Expert Guidance to Decide?
Talk to our certified NetSuite consultants for a free personalized demo and strategic roadmap tailored to your business.
What are you waiting for? Schedule your free consultation today with VNMT Solutions – your trusted NetSuite partner in Australia.
