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Enterprise resource planning (ERP) software solutions such as NetSuite and SAP can be amazing tools for organizations looking to streamline and manage their processes. Both solutions offer a long list of features that can help an organization improve every aspect of its business, from marketing to sales, order management, and financials. ERP systems are vital to any growing organization.

ERP solutions allow businesses to use integrated applications to manage and track information across various business functions and departments. This boosts the flow of data across the organization, increasing efficiency and overall results.

If your business wants to implement one of these ERP solutions, it might be trying to decide between two of the most popular ones – NetSuite and SAP.

NetSuite vs SAP – The Basics

With its first integrated systems developed back in the 1970s, SAP is one of the pioneers of ERP software. The company name stands for “Systems Applications and Products in Data Processing.” And the SAP ERP is an integrated solution that targets mid-sized to large enterprises in all sectors and industries. Over the past decade, SAP has purchased several cloud-based software companies as it attempts to catch the other players in the cloud ERP space.

NetSuite is the world’s most used cloud-based ERP solution. It was first launched in 1998 as an online accounting software solution. NetSuite is the only native Cloud ERP system on the market today. The company acquired several smaller software companies and it expanded its cloud-based functionality over the years. The platform was then purchased by Oracle. To date, it has served over 24,000 organizations in more than 100 countries.

NetSuite vs SAP – Which One is Better?

Both NetSuite and SAP offer cloud-based ERP solutions to help mid-market companies run their businesses more efficiently. But how are they different and which one is better? Here are some of the main differences between the two:

1. Cloud Capabilities

NetSuite was designed out of the gate as a cloud-based solution. SAP, on the other hand, was designed to be used on the user’s local system but can now be accessed through the cloud. For customers looking for true cloud-based ERP that guarantees security and functionality, Netsuite is the clear winner.

2. Customization

Both ERP solutions give users the ability to manipulate their interfaces and add user-defined fields. With SAP, users may require a separate tool for customization (MS Visual Studio). With NetSuite, users can make the changes they want via point-and-click functionality directly in the browser.

3. System Updates

Because SAP is a hybrid solution, customizations may not make it through upgrades, which is a significant downside. With NetSuite’s 100% cloud-based system, all custom scripts are carried forward with any updates. The only time updates to your custom scripts are needed is when NetSuite changes the underlying database structure.

4. Simplicity

SAP is working on creating a consistent and modern user interface called Fiori. But the product still can’t compete with NetSuite, which has a modern, clean, and consistent dashboard that is simple to learn and navigate.

5. Reporting & Analytics

SAP offers broad analytics and reporting capability. But users will find that they may need to acquire separate licenses to access some of these features, which increases their costs. NetSuite’s analytics tool is not only simple to use and feature-rich, but it gives users a complete view of their business and is entirely included with the ERP solution.

The Bottom Line

SAP was never fully committed to the mid-market or cloud ERP and has had to play catchup, which is a tough prospect for any company in a competitive space. NetSuite was born in the cloud and has been a leading provider in the cloud-ERP space for small and mid-sized businesses.

Choosing the right ERP for your company is a significant step and one you shouldn’t take lightly. Not only are our consultants trusted NetSuite Partners, but we can also make the integration with your existing systems seamless. Get in touch with us today to learn more about how we can help.