Dynamics GP vs. NetSuite - A Reality Check Part Four

In our last post discussing how NetSuite positions itself against Microsoft Dynamics GP in the sales process we discussed TCO. Having slain that dragon let’s move into a topic that covers what I believe to be the real drivers behind the total cost of owning an ERP solution:

Ease of Implementation, Customization, Maintenance and Use

Once again, according to their website, NetSuite basically says that Dynamics GP was developed to run on an abacus in of all places Fargo North Dakota! Evidently for software to be any good it can’t be old. I wonder what big brother Oracle thinks about that notion. Larry is a calm guy, we should ask him.

So maybe we can forgive being old, but Fargo!? That is not exactly trendy and sunny Silicon Valley, how tacky. I bet they don’t even have decent Sushi in North Dakota.

With close to thirty years of midmarket ERP implementation experience with a variety of products there are some truths about ease of implementation, customization, maintenance and use that are fairly immutable regardless of product and technology. These truths include:

• Implementation – more sophisticated software requires more implementation. There is no magic!
• Customization – if you are heavily customizing your software you might want to look at another solution.
• Maintenance – annual maintenance costs can get absorbed in one of two places: updating the product or keeping the product running on the latest “technology”.
• Use – accounting software runs faster and more efficiently in a character based environment. Think DOS based GP with data input folks using the ten key and enter key. All windows does is slow them down not to mention the speed bump the mouse is. (Old timers remember that a major selling point of GP was that you could switch the Tab key with the Enter key). Running “natively in a browser based application” sounds great but adds no speed or usability.

Let’s look at their specific claims:

Today's rendition of Microsoft Dynamics GP is built on the foundation of a product designed in Fargo, North Dakota and released 17 years ago, well before the launch of Microsoft Internet Explorer and the founding of Netscape—the company that pioneered and commercialized the Internet browser. NetSuite, on the other hand, was designed with the Internet at its core, as a browser-based, web-native application from day one.

I believe we have covered that already above.

Interesting side note: what if you like on premise software? Ask about switching when you decide that is a better model for your business.

NetSuite today is the fastest-growing financial management application of the top 10 (Source: Gartner Group).

How do you measure that? My guess is customer adds per month. If that is the case I always want to subtract the number of customer’s dropped per month into the equation.

A Microsoft Dynamics GP implementation can cost one to one-and-half-times the purchase price of the software itself or even more. Microsoft Dynamics GP can become hard to upgrade when dealing with customizations specific to your business and integrations with other solutions, such as sales force management and ecommerce. Add to that the resources required maintaining it.

Again, no magic, if you don’t believe that see SAP and a billion dollar adventure called Business ByDesign. If your requirements are more sophisticated it takes a more comprehensive product and more time to implement. Period.

With NetSuite, implementations are both faster and less expensive than with Microsoft Dynamics GP. Advanced customization capabilities allow you to tailor NetSuite to your business practices–and migrate easily with upgrades. There's no maintenance to worry about. And because NetSuite is 100% web-native, you can access it from anywhere–all you need to do is open your browser, log on and use the application.

If you need to advanced customization capabilities then buy Microsoft Dynamics AX not GP.

NetSuite and its partners also provide leading-edge professional services and educational programs that ensure efficient implementation and continued, long-term success.

My guess is that the Microsoft Dynamics partner ecosystem is the envy of the industry. Why else would its partners be recruited so aggressively by the competition?

Our final post in this series will examine NetSuite’s comments regarding “Built-In Multi-Subsidiary Management and Financial Consolidation”.

Peter Joeckel is the President and Founder of TurnOnDynamics a Microsoft Dynamics GP (formerly Great Plains) and AX (formerly Axapta) partner primarily servicing the Texas, Oklahoma, Louisiana and Arkansas (TOLA) area. While it serves a diverse customer base TurnOnDynamics does have specialized expertise in selecting and implementing advanced ERP solutions for manufacturing and software companies.

Additionally, TurnOnDynamics is an investment and advisory firm that focuses on the strategic concerns of executives and owners with unique Dynamic CFO Services.