NetSuite beats SAP Business ByDesign in both Cost and Functionality

NetSuite’s ERP cloud software is less expensive and offers more functionality compared to SAP’s Business ByDesign (BBD).  NetSuite Inc, a leader in cloud-based financials/ERP software announced that in a cost-of-ownership (TCO) comparison with its competitor, NetSuite was 40-70 % less expensive than Business ByDesign.

Using SAP’s own online TCO calculator, the TCO for Business ByDesign comes out to $510,284 for just 10 users over a span of 5 years in a distribution company. In similar-sized manufacturing companies, the TCO was $496,233. A 10-user high-tech company would have a 5-year TCO of $539,243.

In contrast, NetSuite’s calculations found that its product comes out to a fraction of the cost of Business ByDesign. According to its calculations, NetSuite costs only $187,192 over 5 years–over 60 % less than SAP. NetSuite based its TCO calculations on its standard subscription pricing and a typical implementation cost for a 10-user deployment, which also includes additional costs for scope enhancements. While SAP’s TCO estimate adds costs for upgrades, major and minor upgrades are a standard part of NetSuite, fully automatic, and require no resources to be spent on them.

In addition to its lower cost, several customers who have chosen NetSuite have found it delivers far more functionality than Business ByDesign.

  • Millwork manufacturer COMMCO LLC of Kansas City distributes various products to the home improvement market, such as retailer Lowe’s, and chose to transition from SAP R/3 to NetSuite. Franklin Christopher, President and CEO of COMMCO found that Business ByDesign offered only 30 % of the functionality of NetSuite. COMMCO’s 5-year cost, including subscription, implementation, and migration from SAP R/3 is over 40 % cheaper compared to a SAP Business ByDesign deployment.
  • Schaeffer Manufacturing Company, a lubricant maker based in St. Louis, deployed 40 users on NetSuite, choosing it over SAP Business One after evaluating its features. Its 5-year TCO is more than 60 % less than SAP’s published Business ByDesign TCO. Thanks to NetSuite, Schaeffer has improved its error rates, reduced shipping times, and expanded the use of electronic order processing and payments.

Data collected from manufacturing and wholesale distribution customers who deployed NetSuite with an accelerated deployment of as few as 12 users have demonstrated that NetSuite offers a 5-year cost saving of over 70 % compared to SAP Business ByDesign.

Mini Peiris, NetSuite’s VP of Product Marketing said, “By providing an under-powered product with an extremely high total cost of ownership, SAP has fallen into the trap of every stone-age software provider that has tried to make the transition to the cloud and not cannibalize its installed base. But NetSuite will gladly cannibalize SAP’s installed base with a rich Cloud product that actually reduces total cost of ownership while increasing productivity.”

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