Strategic Long-Term Contracts That Maximize ROI When Renewing NetSuite Licenses

Written by: Ria Rodriguez-Richardson

In the ever-evolving landscape of enterprise resource planning (ERP) systems, securing a robust and cost-effective strategy for renewing NetSuite licenses is paramount. For mid-sized global businesses, a strategic approach to licensing can significantly impact both the total cost of ownership and the overall return on investment (ROI). At Etter & Ramli (E+R), our extensive experience in managing NetSuite environments has shown that opting for long-term contracts, specifically those spanning 3-5 years, is a highly effective strategy.

Opting for Long-Term Contracts: A Strategic Decision

When it comes to renewing NetSuite licenses, the conventional approach involves annual renewals. However, this method can result in fluctuating costs and potential disruptions. Instead, a 3-5 year contract not only secures a significant discount but also provides cost stability, which is crucial for long-term financial planning.

1. Significant Cost Savings

One of the most compelling reasons to choose a long-term contract is the cost savings. NetSuite often offers substantial discounts for multi-year commitments. By locking in a rate for 3-5 years, businesses can avoid annual price increases and benefit from lower overall costs. This financial predictability allows for more accurate budgeting and resource allocation.

2. Enhanced Financial Planning and Stability

Long-term contracts provide a clear and stable financial outlook. Knowing the exact cost of your NetSuite licenses over several years enables better financial planning and reduces the risk of unexpected expenses. This stability is particularly beneficial for managing cash flow and ensuring that funds are available for other strategic initiatives.

3. Improved Vendor Relationship

A long-term commitment fosters a stronger relationship with NetSuite. This partnership can lead to more favourable terms and conditions, priority support, and access to exclusive resources. A stable and predictable relationship with your vendor ensures that your business operations continue smoothly without the need for frequent renegotiations.

Focused Support and Managed Success

At E+R, we understand the complexities and challenges that businesses face post go-live. Our Managed Success methodology is designed to maximize value and achieve desired business outcomes through proactive, data-driven insights. By opting for long-term contracts, businesses can leverage our dedicated Success Managers and skilled teams to ensure continuous improvement and operational excellence.

Lower Total Cost of Ownership

Outsourcing your NetSuite admin to E+R as a retained service lowers your total cost of ownership. Our team of certified and dedicated resources, with domain expertise in NetSuite, is ready to support your engagement manager. This approach allows clients to “load balance” the resourcing needed to run and advance their system effectively, further enhancing ROI.

Conclusion: A Strategic Path Forward

For executives and decision-makers, the choice between annual renewals and long-term contracts for NetSuite licenses is clear. A 3-5 year contract not only secures cost savings and financial stability but also strengthens vendor relationships and enhances support. By adopting this strategic approach, businesses can maximize their ROI and ensure sustained success in their NetSuite journey.

At Etter+Ramli (E+R), we pledge to run your NetSuite better than you can run NetSuite for yourselves, especially during renewal talks.

To explore the benefits of retaining Etter+Ramli as your Managed Success Provider, contact Todd Kimpton, Ria Rodriguez Richardson or visit the website for a free consultation today. Subscribe to our Newsletter: SuiteWords of Etter+Ramli to stay up-to-date with the latest trends on NetSuite, tips n’ tricks, productivity solutions, and events.