NetSuite Myths: Suites Cost More

Another month, another myth.

As we continue our series on the most egregious and damaging lies about the trusted leader in Cloud ERP, we would today like to turn our attention to a particularly damaging myth that has been making its rounds in the suite vs. best-of-breed debate: Best-of-breed software costs less than suites.

This is a common myth used by best-of-breed resellers and vendors to pitch the “lower total cost of ownership, higher return on investment, and faster payback periods” of their software. While their argument may sound sensible, what’s really happening is an apples and oranges comparison that is built on a flawed premise. Today, we will explore how the myth spread, and discuss how best-of-breed software may end up costing you more than a suite in the long run.

The Myth: A Best-of-Breed Application Costs Less Than a Suite

As with many of the other myths that we have discussed, this one targets your budget. While it’s no lie that any enterprise resource planning implementation is going to take months and cost anywhere between five and six figures or more, issues arise when a best-of-breed reseller tries to compare its software to that of a suite.

Often the argument goes hand in hand with our previously debunked “shelfware myth” in which best-of-breed resellers try to position suites as monolithic beasts that provide more functionality than you need, this myth attempts to position best-of-breed software as nimble, focused, and ultimately less costly.

The Tactics

The tactics to this myth are pretty tame and straightforward: Sell users on a hyper-focused software by focusing on the total cost of ownership of both suite and best-of-breed applications. This, of course is built on faulty reasoning, and comparing these two delivery methods in this manner is the software equivalent of comparing apples to oranges.

Often, a reseller of “best in class” software will talk about total cost of ownership, touting that a best in class solution costs less money. We can’t argue with that—you will spend less money when you buy one single item. However, there’s a difference between spending less money and saving money, as illustrated by the example below.

A Lunchtime Example

Say you’re hungry, and you want to grab lunch from a local fast food place. You buy a hamburger.

You finish the hamburger, but you’re still hungry. So on the way back to work, you stop at a different location for fries. After finishing the order of fries, you realize that all of that salt made you thirsty, so you stop at yet another location for a cold beverage. Walking back to work, hunger gone and thirst slaked, you see a sign for a value meal—Burger, fries, and a soda—for half the price that you just paid.

While technically, you did pay less money for the burger than you would have paid for the value meal, by time you got everything you needed, you ended up paying more for three separate items from three separate restaurants. The same goes for the suite vs. best-of-breed debate.

The Verdict: Mostly False

This myth is technically correct. You will spend less money on a single-focus accounting software than you will on a complete ERP solution. However, one software solution doesn’t support a business, and by time you get everything you need, you’re paying much more than you would have if you had just gotten the entire package in the first place.

Better yet, when you choose a suite, you’re not only dealing with one vendor, you’re working with an implementation partner with vast experience in the diverse platform—someone who knows the ins and outs of said platform and who can address any challenges before they arise. For nearly three decades, we’ve perfected the process of the ERP implementation, and have found ways to reduce risk and make sure that the implementation is done right the first time.

As you continue to compare ERP options for your business, it’s important to know that your partner has been there and done that. At MIBAR, we have successfully completed hundreds of implementation projects in our time, and saved dozens more from failure. If you choose to work with us, we will do everything in our power to honestly explain the risks, mitigate potential challenges, and get you r ERP up and running on time.

We invite you to learn more about our work with NetSuite, learn about some of the other myths being discussed, and read our recent blog on why it’s so important to find an honest, straightforward implementation partner.