Odoo vs NetSuite – Key differences and similarities between two ERP solutions

Odoo vs NetSuite – in this article, we examine the Key differences and similarities between two ERP solutions. The most important factor that determines the success of any organization depends on the software applications they choose to use. Moreover, the decision to select right software is extremely crucial for small and midsize businesses when they evaluate their financial systems.

In this post, we’ll talk about the ERP system called Odoo, which is one of the popular open source ERP. We’ll also cover the key differences and similarities between NetSuite and Odoo, their features, and decide which one is the best for seamless business operations.

What is Odoo?

Odoo ERP, which is commonly referred to as “Open ERP,” is an open-source business management software suite that can help you run your business. It offers Odoo applications, which are fully functional business apps that can be joined together to build an ERP solution and are used to manage a company’s business operations. 

Odoo has a large set of business applications or modules that include CRM, Sales Management, eCommerce, Warehouse Management, Purchase Management, Accounting Suits, Manufacturing Management, HRMS, and others. 

Odoo advantages

• Cost-effectiveness and ease of use
• Offer a complete range of Odoo apps
• Compatibility with a variety of add-on software apps from third-party
• Offers a free version of Odoo called Community
• Suitable for every industry
• Open source

What is NetSuite?

To help businesses work more effectively, NetSuite ERP, a fully-featured cloud company management solution, automates routine tasks and offers real-time visibility into operational and financial performance. 

Through the integration of accounting, order processing, inventory management, manufacturing, supply chain, and warehouse activities into a single, integrated suite of apps, NetSuite gives businesses more visibility into their data and allows them to have better control over their operations. 

NetSuite’s advantages

• NetSuite can be adapted (Customized) to your unique business requirements 
• Integration with a third-party system is simple
• It can help with the company’s automation and its growth 
• A predictable price package
• It can streamline your company’s processes
• Highly secure
• Supported by reliable vendor and partners

Understanding the key differences between Odoo and NetSuite

Flexibility

Many organizations aim to either develop or retain a certain amount of flexibility in their operational or overall business model, for which they deploy new technologies to become more adaptable. In terms of flexibility, NetSuite and Odoo are quite different. 

Commonly, Odoo is observed as a more flexible product because of the fact that it is an open-source technology. With some kinds of products, such as NetSuite and other ERP systems, it could not be possible to configure and change the source code, but this structure provides greater access.

Furthermore, several different applications are available through Odoo that can be added to the core ERP functionality. Odoo can be a great option for the company if flexibility is a top priority. 

In contrast, since NetSuite is a cloud-based software-as-a-service solution, it might be a better option if your company is trying to achieve efficiency, standardization, scale, and a repeatable set of business processes. That means there is less chance to modify the software. Some people would see this as a drawback, but there are also benefits. That sort of standardization is demanded by many organizations. 

While there are challenges related to upgrades that will come when you make substantial customizations in open-source software like Odoo. This is not an issue with Oracle NetSuite where customization respects any version upgrades. Considering this NetSuite scores big in terms of giving flexibility to change while at the same time not causing any issues when upgrades happen.

The pre-built capability could help firms scale up for their growth. While comparing NetSuite with Odoo, this shift must be taken into consideration

Modularity

The degree of modularity between these two products is another important difference. For example, NetSuite is a robust, integrated ERP solution. It offers a number of integrated modules. NetSuite has more modules compared to Odoo – which means it covers more depth of functionality.

Odoo also makes it simpler to deploy a modular approach. Its modules are designed to be broken into various pieces and then integrated. 

Again, these implementation options must be thought about while deciding on the best ERP solution. While Odoo may seem simpler, NetSuite is definitely more standardized across the modules.

Total Cost of Ownership

In general, NetSuite will cost more as a solution. Mostly because it isn’t an open-source solution, which gives NetSuite a higher cost for subscriptions and licenses while Odoo comes with a lower-cost pricing model. 

The contracts and subscription agreements that NetSuite uses are the additional things that raise the overall cost of ownership. The potential cost of a subscription could rise over time due to a number of clauses in these agreements. From the number of users, transaction volume, extra modules, or all of the above, costs will typically rise with time. 

On the other hand, Odoo can have lower software license fees. When it comes to the software’s implementation and ongoing maintenance, there are typically additional costs. Odoo will require internal IT capabilities and a particular level of technical proficiency within the organization – which is a substantial cost. 

It is also important for organizations to consider every cost while evaluating the potential software because all pricing systems are different.

Complexity

The level of complexity or simplicity of the products is another factor to be considered when comparing these two products, NetSuite and Odoo. As a single,  fully integrated SaaS solution, NetSuite is usually a simple kind of product. 

Odoo is flexible as it needs to connect everything. This adds a level of complexity that some firms may find difficult to handle, especially if they lack strong internal IT capabilities. NetSuite can be an easier choice if you don’t have such strong internal IT capabilities or don’t plan to have those capabilities in the long term. 

Business Value

Everything ultimately comes down to business value. Things that we have discussed above in terms of cost, flexibility, and the simple use of both ERP solutions determine how you look at your business value. ERP software that meets customer demands and is aligned with the organization’s goals is most likely to provide the maximum business value. 

As an organization, it is still crucial to identify specific business needs, business process workflows, and future state requirements. Any system will be evaluated primarily on these criteria. Perhaps the general criteria given above will make it easier to compare the costs of these two solutions with their business value.

Conclusion

We hope that this article has given you a better understanding of NetSuite and Odoo ERP applications and empowered you to choose wisely between them. NetSuite emerges as a robust and No. 1 cloud ERP solution to meet all of key business operations and financial needs. On the other hand, Odoo, an open-source ERP software, gives the system’s code access to its users so they can customize it based on their IT capabilities without relying on third-party vendors. 

NetSuite is the most trusted ERP software across industries, with over 40,000 organizations using the platform globally. The platform consists of a suite of applications that help companies manage their businesses, evaluate their performance, gain efficiency, and save on their expenditures. 

To find out more about ERP systems and to discover how to use it to the most advantage for your business, schedule a free evaluation call with one of our ERP Consultants.