Dynamics 365 vs. NetSuite: Which One Delivers More for Mid-Market Businesses?

When your business is mid-sized and you wish to choose the right ERP like Dynamics 365 or NetSuite, it is a big decision. It’s not just about managing accounts or tracking inventory. The ERP system you choose also affects your team's work capabilities, how easily you scale, and even how much control you have over costs.

After performing thorough research, most companies eventually get stuck between the choice of two names: Microsoft Dynamics 365 vs NetSuite. Both of these are popular and are cloud-ready, and both of these promise to support your growth. But they aren’t the same. Once you look deeper, you’ll notice they have differences in terms of flexibility, pricing, and how well they fit mid-market needs.

This blog compares these two systems side by side. Instead of just sharing a brief overview, we’ll focus on how each platform performs after implementation and where one edges ahead of the other.

Dynamics 365 vs NetSuite: Why Mid-Market Firms Care Much About This Choice

A small business can sometimes get away with spreadsheets and a few disconnected apps. A large enterprise usually has the budget and resources to run huge ERP systems. But mid-sized companies sit in the middle of it.

They’re too big for patchy tools, but they don’t want to overpay for systems they can’t fully use. That’s why the Dynamics 365 vs NetSuite comparison matters a lot for mid-size businesses. Both claim to be the best ERP for companies in this stage. The real question is which one is really the best? To find out, let's do a comparison of their key parameters.

1. Deployment and Control

Dynamics 365 gives you options. You can go cloud, stay on-premises, or even run hybrid if your industry demands tighter control over data. This flexibility can be a lifesaver for regulated businesses like healthcare or finance.

NetSuite is different. It’s strictly cloud-based. That simplicity works for many, but if you want more control, the choice is gone before you even start.

Picture this: A UK pharma distributor needed to keep certain records on local servers due to compliance laws. Dynamics 365 gave them that setup. NetSuite couldn’t.

Takeaway: If deployment freedom matters, Dynamics 365 has the upper hand.

Also Check: ERP Comparison Tool: Which System Fits Your Business Needs?

2. Ease of Use

The majority of workers already use Microsoft products like Teams, Excel, SharePoint and Outlook. Dynamics 365 directly accesses that domain. The navigation feels familiar, Teams chats can be connected to workflows, and reports open in Excel.

Although NetSuite is modern and clean, there is a learning curve. Adoption may be slowed by staff members having to get used to a new setting.

In practice: A logistics company switched from NetSuite to Dynamics 365 because workers kept jumping back into Excel. With Dynamics, they didn’t have to leave their comfort zone.

Bottom line: Dynamics 365 feels natural if your team already uses Microsoft daily.

3. Modules and Growth

Dynamics 365 is modular. You start with what you need, maybe Finance or Sales, and add Supply Chain, HR, or Customer Service later. This pay-as-you-grow approach means you aren’t forced to pay for extras too early.

NetSuite bundles most features together. You get finance, CRM, supply chain, and more in one package. That can be convenient, but it also means paying for tools you may not touch for years.

Think of it this way: An eCommerce brand needed Finance first and Supply Chain later, once they expanded overseas. With Dynamics, they added the new module when ready. With NetSuite, they would’ve been paying for it from day one.

Verdict: Dynamics 365 lets you grow on your terms.

4. Customisation and Fit

Dynamics 365 runs on Microsoft’s Power Platform, so companies can design their own workflows, dashboards, or small apps with little coding. Need a quick workflow that sends alerts when stock runs low? You can do it in-house.

NetSuite can also be customised, but it usually requires developers and more cost. The SuiteScript framework is powerful but not as friendly for non-tech teams.

Example: A manufacturer used Power Automate with Dynamics 365 to create automatic purchase orders. In NetSuite, that would have needed scripting and outside consultants.

The truth is: Dynamics 365 gives more freedom to tweak the system yourself.

5. Pricing

Here’s where things often get tense.

Dynamics 365 has modular pricing. You buy the apps you want and skip the rest. For mid-market firms that watch costs carefully, this is a big plus.

NetSuite uses bundled pricing. You pay for a suite, even if you only want half the features. For some, it feels like buying a full buffet when all you wanted was a sandwich.

A retail example: one company compared costs for 100 users. With Dynamics, they only paid for Finance and Customer Service. With NetSuite, the bundle forced them to cover modules they didn’t use.

Point made: Dynamics 365 is often easier on the budget.

6. Scalability

Both ERPs scale, but the ecosystem is different.

Dynamics 365 is built with enterprise growth in mind. It handles multiple countries, currencies, and regulations without trouble.

NetSuite works well for SMBs and the mid-market, but some global companies outgrow it when they expand into too many regions.

Case in point: An international distributor used NetSuite until they reached 12 countries. At that point, compliance and currency rules got too heavy. They switched to Dynamics 365 Finance and Operations, which managed global complexity better.

Findings: Dynamics 365 scales higher, making it future-proof for mid-sized firms aiming big.

7. Support and Ecosystem

Microsoft has a global partner network. Whether you’re in London, New York, or Sydney, you’ll find a certified Dynamics partner close by.

NetSuite’s ecosystem is smaller. Many businesses rely directly on Oracle for support, which can be slower and costlier.

Real-world example: A UK manufacturer needed in-person training. They found a Dynamics partner within the same city. For NetSuite, the nearest option was offshore.

Wrap-up: If local support matters, Dynamics 365 is the safer bet.

Quick Comparison: Dynamics 365 vs NetSuite

A Mid-Market Story

A UK retail group was deciding between the two. NetSuite offered speed but came with a bundle they didn’t want to pay for. Dynamics 365 lets them start with Finance, then later add Supply Chain and CRM modules.

In less than two years, they had expanded across regions without rethinking their ERP. Their CFO admitted, “NetSuite looked tempting at first, but Dynamics gave us control over what we paid for and how we scaled. That made all the difference.”

Final Thoughts

NetSuite and Dynamics 365 both deliver strong ERP options. But if you’re mid-market, the truth is clear.

NetSuite is fine if you’re smaller and want an all-in-one cloud package.

Dynamics 365 gives you flexibility, familiar tools, cost control, and room to scale.

You should think long-term. If your business expects to grow, expand, or even go global, Dynamics 365 is usually the smarter investment.

If you’re exploring the move, reach out to Dynamics Square UK to see how Dynamics 365 can fit your growth story.

Some FAQs of Dynamics 365 vs NetSuite

Which is better: Dynamics 365 or NetSuite?

Both of these ERP systems have their strengths, whereas NetSuite works well for small companies that require a ready-to-go suite. Dynamics 365 fits better for mid-market and enterprises that want choice and scalability.

Is Dynamics 365 better than NetSuite for the mid-market?

Yes. Dynamics 365 usually offers better value for mid-market firms because of modular pricing, scalability, and native Microsoft integration.

NetSuite vs Dynamics 365: which ERP should I choose?

If you want a quick start and are fine with bundled pricing, NetSuite works. If you want control, flexibility, and long-term growth, Dynamics 365 is the safer and smarter choice.