NetSuite is a comprehensive ERP system that is suitable for business of all sizes. Because it can be implemented into small companies, all the way up to large enterprises, NetSuite have created service tiers. These are based on certain factors within your business, and they control certain things you can and can't do.
What are NetSuite service tiers?
NetSuite's service tiers are essentially different levels of usage, designed to align with different business needs and scales. As organisations grow, they naturally require more storage and transaction capabilities, and this puts extra pressure on Oracle data servers. As such, they have created service tiers to ensure that organisations are paying for their fair share of usage.
The key aspects that determine which service tier is suitable for a business are based on the number of users, file storage requirements, monthly transaction lines, and technical aspects like SuiteCloud+ licenses and concurrency. Below is a summary of the different requirements for the aforementioned factors:
Monthly transaction lines doesn't just refer to a completed sale, it refers to every single transaction within your business. This could be a:
- Cash Sale
- Invoice
- Credit Card
- Expense
- Inventory Count
- Item Receipt
- Refund
- Purchase order
What is a Suite Cloud Plus License?
A SuiteCloud Plus license offers enhanced features for businesses seeking to expand their NetSuite capabilities. This license allows for 3 things:
- Increasing the number of channels that data can flow into NetSuite with
- Increasing the number of channels for processing data within NetSuite
- Provides higher governance limit on certain scripts
It essentially increases the capacity for your system to process data, allowing customers to operate more web services integrations, batch processes and file imports. Think of it like adding an extra lane on a motorway, but instead of cars it's data, causing less disruption and more seamless data flow!
What is a Sandbox account?
A sandbox account serves as a separate testing environment, enabling organisations to experiment with new customisations without affecting their normal operations. This is extremely valuable, as you often do not know the impact of a new script or customisation until you load it into NetSuite. If the script does not work properly, this can effect operations and cause a loss in revenue.
The Sandbox account allows you to test new scripts, reducing any form of disruption to the business. Standard tier does not offer a sandbox account, which makes an upgrade to the premium service tier very valuable.
Is it easy to switch service tiers?
Yes, it's very easy to switch service tiers. It takes approximately 3 days for the change to complete and provides no disruption to day to day operations.
It goes both ways also, if you upgrade service tiers due to high transactions and then find you are not meeting the requirements of the next tier, you can downgrade. This flexibility allows organisations to easily scale, or to save money if they find they are under usage requirements.
How will I know when I need to switch service tiers?
The most common reason companies upgrade service tiers is due to the number of user licenses required. If you are on the standard tier and find you need more than 100 licenses, just contact your implementation partner and they can help you upgrade.
For transaction volumes, fortunately you do not need to keep track of your transactions each month. Oracle look at transaction volume averages over a 6 month period, so you don't need to upgrade as soon as you hit 200,000 one month. This therefore takes into account any seasonal or short term changes that may cause an uptick in transactions.
Oracle have a specific team dedicated to mapping your service tiers, and they can tailor your solution to fit the needs of your business. For example, if you only need the standard tier, but would like a sandbox account, they can make this happen. Your implementation partner will be able to guide and support you in this process.
Is upgrading service tiers worth it?
Sadly, you are not offered a choice as to whether you can upgrade tiers. If you reach any of the limits mentioned above, then you must upgrade and pay for the next tier.
However, feedback from customers who have transitioned to a higher service tier is overwhelmingly positive. They report increased capacity during peak times, improved transaction speed and processing efficiency. As such, this upgrade is often seen as a valuable investment, contributing to the overall operational efficiency and growth of their organisation.
Need a bit more help understanding NetSuite service tiers? Our experienced team at Threadgold Consulting are here to help, so get in touch today and we will help you choose the right tier for you!
