Microsoft Dynamics vs. NetSuite: Seven Core Differences for Businesses to Consider in 2025

Should businesses choose Microsoft Dynamics 365 or NetSuite? This is the vital question any business will encounter when considering integrating with an Enterprise Resource Planning (ERP) system.

Although these platforms help businesses manage and utilize their enterprise resources well, they are fundamentally different. They also cater to businesses with unique ERP goals and expectations.

Hence, businesses must understand how these platforms differ to select the most suitable, value-adding ERP system for their enterprise.

This blog post explores the seven key differences between these two platforms.

Microsoft Dynamics vs. NetSuite: Seven Key Differences

While there are many differences between these top platforms, the following are the most crucial differences that most businesses should consider.

1. System Architecture

NetSuite is built entirely for the cloud, meaning the business obtains automatic updates and smooth scalability. On-site servers are not required.

Everything is simple; teams can log in from anywhere, and IT headaches are rare. NetSuite’s multi-tenant setup also makes staying current with new features easy. Hence, businesses do not have to constantly rely on the support of a NetSuite consultant for updates and changes.

Microsoft Dynamics 365, on the other hand, started as an on-premise software. It now operates in the cloud, too. Many businesses expect complete control of the ERP software or need specific setups. In such cases, the on-premises option works well.

For businesses that prefer operating on the cloud, Microsoft Dynamics 365 offers that. Businesses already using Microsoft tools often find the integration seamless. Working with a Microsoft Dynamics implementation services provider helps keep all operations working smoothly.

Both NetSuite and Microsoft Dynamics 365 offer a reliable architecture that supports their users. Hence, choosing between the two really depends on a business’s specific preferences and requirements.

2. Reporting and Analytics

Reporting and analytics are vital to make sense of business operations. As an ERP system helps manage resources, it must have adequate reporting capabilities.

When it comes to reporting, both NetSuite and Microsoft Dynamics 365 offer unique benefits.

NetSuite comes with built-in analytics tools that offer real-time data. Access dashboards that track sales, expenses, and performance metrics immediately. Everything is ready to go, with minimal setup.

This makes NetSuite perfect for teams that want quick insights without extra fuss. If help is required, there are many top NetSuite service providers available.

Microsoft Dynamics 365, however, takes analytics to another level with Power BI. This integration allows for advanced data visualization and deep dives into business trends. For teams that love customizing reports or require detailed projections, Dynamics 365 is a great choice.

It is also possible to connect the ERP system with other Microsoft tools, thus enhancing reporting even further.

3. Customization and Flexibility

Flexibility is vital when picking an ERP system. Both NetSuite and Microsoft Dynamics 365 offer options to meet unique needs.

NetSuite allows extensive customization through its SuiteCloud platform. From creating custom workflows to integrating third-party tools, it adapts to various needs.

For businesses with unique needs, they can tweak the system to fit their needs perfectly. As always, the help of an ERP software consultant is always available, to avoid starting from scratch.

The same goes for Microsoft Dynamics 365. It takes flexibility up a notch, though, if already in the Microsoft ecosystem. As it works seamlessly with Azure and Office 365 to build customized solutions, developers can use Microsoft’s Power Platform to create low-code apps or automate workflows.

Whatever is required—dashboards, fields, or integrations—Dynamics 365 meets those needs. Businesses can rely on Microsoft Dynamics 365 ERP consulting to take full advantage of the platform.

4. Integration Capabilities

Integration is an area where both NetSuite and Microsoft Dynamics 365 shine. However, this does not mean that they have the same approach.

NetSuite offers a built-in suite of tools for ERP, CRM, and e-commerce. Everything works together seamlessly, which means businesses often do not need extra software. If extra software is required, it is typically SuiteCloud Developer Network. It makes connecting with third-party tools more accessible and faster. It is designed to simplify operations for businesses needing an all-in-one solution.

Microsoft Dynamics 365, however, takes a different path. It thrives in the Microsoft ecosystem. This means that businesses can connect effortlessly with Azure, Office 365, and Power BI. If a business already uses these tools, this integration creates a smooth flow of data and processes.

Dynamics 365 also integrates non-Microsoft apps with its robust third-party app support.

In short, NetSuite is ideal for an all-in-one setup. However, for businesses entrenched in Microsoft products, Dynamics 365 offers unmatched integrations.

5. User Experience and Interface

Businesses do not want to spend a lot of time managing their ERP system. The idea behind using ERP software is to make life easier. Both NetSuite and Microsoft Dynamics 365 offer unique user experiences.

NetSuite keeps things simple and clean. Its interface is simple, with customizable dashboards that let you track metrics in real-time. There is no clutter or any hassles. Teams love how quickly they can adapt without spending days figuring out the basics or learning it from a NetSuite implementation consultant.

Microsoft Dynamics 365 feels like home for those already using Microsoft tools. Its layout mirrors familiar apps like Excel or Outlook, making it easy to pick up. Beyond that, it’s very flexible. Tweak workflows, adjust layouts, and even design custom reports to fit precisely with team needs.

So, when picking up an ERP system, NetSuite is a better option for simplicity. However, for enterprise-grade customizations, Dynamics 365 is a better choice.

6. Scalability

Both NetSuite and Microsoft Dynamics 365 have extensive scalability features.

NetSuite was built to grow with businesses of all sizes and leverages a cloud-based structure. Easily add users, handle larger datasets, or expand into new markets without breaking a sweat. For fast-growing companies, this flexibility is a huge advantage.

Microsoft Dynamics 365, on the other hand, takes scalability to a more tailored level. Both small operations and enterprises can start small and add features as they go. This is ideal for businesses that rely on Microsoft tools. The Microsoft ecosystem scales effortlessly with its growth.

Integrations with Azure provide extra help for data-heavy or global operations. Several agencies offer Microsoft Dynamics ERP consulting services.

7. Pricing Structure

Although pricing is not the most crucial factor when selecting an ERP system, it is a vital element.

NetSuite operates on a subscription-based model. The base license fee starts at US $1,000 per month, with extra user licenses and modules adding to the total cost. The costs also vary based on modules and user count.

This pricing model offers flexibility and allows businesses to select and pay for only the functionalities they need. Businesses can also work with a NetSuite ERP implementation agency to figure out the best plan for their needs.

Microsoft Dynamics 365 offers modular pricing. It enables businesses to pay for specific applications they use. For example, Dynamics 365 Business Central Essentials is priced at US $70 per user per month. However, the Premium version is US $100 per user per month.

This approach allows organizations to tailor their ERP investment to their specific requirements.

Both systems provide customizable pricing structures. However, the choice depends on a business’s size, needs, and budget.

Key Takeaway: Select The System that Best Fits

The choice of the ERP will decide how efficiently a business can use its business resources and manage its operations. Therefore, consider elements like system architecture, scalability, user experience, price, etc., and assess if they can meet the business’s unique needs. Choose the ERP system that meets the majority of expectations, if not all. If a business has trouble choosing, they can always work with Microsoft Dynamics 365 and NetSuite implementation partners to figure out what they need.

BigBang360 is an experienced Microsoft Dynamics 365 and NetSuite development company that can help with everything from ERP implementation to training and maintenance. With a team of experts, they can help with any ed support.

Get a free NetSuite or Microsoft Dynamics 360 consultation call from BigBang360.