Odoo vs NetSuite: Which ERP Software is Better for SMEs?

Small and medium-sized enterprises (SMEs) face distinct challenges in today's fast-paced business world. SME operational success depends on choosing the correct Enterprise Resource Planning (ERP) system.

Two prominent options in this realm are Odoo & NetSuite. Both have their own pros and cons. Picking the right ERP tool for your business requirements can be exhausting.  

Let’s compare Odoo vs. NetSuite so you can choose the best based on price, features, and benefits.

​There are several key factors to consider. Here are five crucial aspects that can influence your choice:

1. ERP Modularity of Netsuite and Odoo

In the context of Odoo, modularity is a key strength owing to its open-source nature. It allows you to start with essential business apps, such as CRM, Sales, Purchase, Inventory, and more, aligned to your needs and scale up later. You can always benefit from Odoo's powerful integration capability with additional components and third-party ones, letting businesses manage the whole business process in one place.

While having many features, NetSuite is more tightly integrated. NetSuite offers a complete set of integrated apps with seamless data flow. This reduces personalization compared to Odoo but creates a more unified framework.

Odoo or NetSuite modularity relies on a business's specific needs. Odoo serves businesses that seek extensive modification. Meanwhile, NetSuite suits those who want a well-integrated ERP solution.

2. Services Provision

2.1. Odoo Software

Two primary editions are available from Odoo. First, the Odoo Community Edition (CE) and then the Odoo Enterprise Edition (EE). These editions provide different sets of features and cater to various user needs. 

Odoo is known for its regular version updates. As mentioned, Odoo has introduced Odoo 17, its most recent iteration. This will include some enhancements and new functionalities. One of the biggest changes is the game-changing user interface, which improves usability. 

It is also crucial to choose the best hosting option for your business capacities. Odoo and its partners offer four hosting options for varied company demands and technical expertise:

• Odoo Online: This SaaS service from Odoo runs the program in the cloud and allows remote access. Easy setup and the least technical skills make Odoo Online ideal for clients.
• Odoo.sh: This is a Platform as a Service (PaaS) service where users can set up and run their cloud platform.
• On-Premise: Clients install and host Odoo on their infrastructure. The hosting allows companies to install additional apps on top of its core part, including approved third-party ones, or build their own. 
• Cloud hosting: Users can also opt for cloud hosting to host their Odoo system. Cloud hosting offers reliable, secure, and scalable hosting solutions. By partnering with Odoo partners, you can enjoy cloud services from global cloud hosting providers, such as Google Cloud Platform and AWS, with a reliable 99.9% uptime.

Moreover, Odoo has an extensive partner ecosystem to ensure personalized assistance and enhance the efficiency of the implementation process. Besides its implementation service, local partners, like Portcities, will offer you other services like technology consulting, Odoo hosting, and support & maintenance.

2.2. Netsuite Software

Oracle NetSuite implements automatic feature updates on a biannual basis. Therefore, the company supports three versions for varied company demands and technical skills:

• NetSuite OneWorld: The most comprehensive NetSuite edition for businesses. Specialized user interfaces and functionality for different countries.
• NetSuite Standard: A basic version that focuses on fundamental business processes and functions. The software has a simple UI and several company management features.
• NetSuite CRM: For businesses that value customer care and relationship management. Self-service, customer assistance, and other services are online. Real-time dashboards let businesses track changes, client satisfaction, and resolution analysis.

For hosting, Netsuite is specifically cloud-based. Although it doesn't offer many hosting options, it has an average uptime of 99.96% with great resource availability for your business. Availability means that your data is backed up in multiple data centers - your operations are accessible at any time and the probability of data loss is minimal. Just like any cloud service, it also means that your data will be well-protected for security.

Netsuite has 250+ partners worldwide. Unlike Odoo, which has a community of users to speed up the rollout of new features, Netsuite depends on its own development team for new features or specific modifications.

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3. Total Cost of Ownership of These ERP Software

3.1 NetSuite ERP

NetSuite's pricing varies based on multiple factors such as company size, edition, add-on modules, number of users, implementation partner, etc. The pricing for NetSuite is generally considered to be on the higher end of the spectrum compared to other popular ERP system options such as SAP, Infor CloudSuite, and Microsoft Dynamics.

The cost of full access per user starts from $100-200, in addition to purchasing the base modules, which cost $999 per month. Additionally, additional Odoo's part such as financing, inventory, and e-commerce range from $300 to $800.

The cost of NetSuite implementation can range from $10,000-$100,000+ depending on the size, complexity, and unique requirements of the organization. Generally, businesses can expect to invest between $25,000 to $100,000 in the implementation process.

The cost of SuiteCommerce Standard is based on a monthly subscription fee, once you factor in discounts/promotions, you should be spending just less than $2k/month for the subscription. The cost of SuiteCommerce Advanced is based on a monthly subscription fee, with discounts you'll likely spend between $4-5k/month.

3.2 Odoo ERP

In comparison, Fabien Pinckaers, the visionary behind Odoo, envisioned making ERP accessible to everyone. This philosophy is evident in Odoo's commitment to providing a free or low-cost option, aligning with the budget constraints often faced by SMEs.

Odoo's pricing model is generally considered more affordable than NetSuite's, with a starting price of $25 per month per user for their Standard Plan, which already includes all applications. Even the Enterprise Plan which includes Multi-Company features and allows integration with External API, costs $31.10 per month.

For additional modification, the pricing may vary depending on the specific business needs and requirements of the business. It is recommended to evaluate the features, functionality, and pricing of each plan to determine which one is the best fit for the organization. 

Odoo scales well for all sizes of businesses, even SMEs—smaller companies with limited budgets like the platform's open-source and cost-effective method.

4. Customization and Flexibility

When comparing Odoo & NetSuite for SMEs, it's important to consider the flexibility of each ERP solution. The reason is that SMEs always see strong potential for expansion, so light personalization might be expected. Together with the expanding business scope, they need scalable software to support larger databases.

Odoo & NetSuite differ in flexibility. Odoo offers more flexible because it's open-source. You can customize the source code or use the Odoo Studio module to customize your apps with no coding or programming skills required. Accordingly, this ERP solution is more beneficial and cost-effective than the other ERPs.

Although NetSuite is a cloud-based and proprietary structure, it does provide personalization options through the SuiteCloud platform. However, you may need vendor support at a higher cost. Conversely, you may benefit from its uniformity and scalability if you seek a fully supported solution from Oracle.

5. Cloud-based and User Experience

Cloud-based and mobility characteristics are key when choosing Odoo or NetSuite. Both platforms offer cloud-based services. This means you can use your ERP system from anywhere with an internet connection.

However, if you look at the user interface, Odoo is better than NetSuite. Odoo is known for its user-friendly interface and ease of use. NetSuite also offers a good user experience, but some users may find its interface less intuitive than Odoo's.

Final Decision: Odoo vs NetSuite Comparison

Overall, when choosing an ERP for SMEs, both Odoo and NetSuite have their advantages and disadvantages. The choice between Odoo and NetSuite will depend on the specific needs and goals of the business. 

Odoo may be superior for businesses seeking affordable, customizable, and flexible ERP software. On the other hand, NetSuite may be better for businesses that need a more robust, integrated system. Understanding these needs can help SMEs make intelligent decisions that boost growth. 

Therefore, choosing Netsuite and Odoo as two elections is only half the battle. The implementation team's experience matters too as your business management software.

Contact us for knowledgeable technical partners.