When comparing Dynamics 365 and NetSuite, think about the future

We often work with organizations that are evaluating NetSuite and Dynamics 365. While on the surface, both seem comparable in terms of capabilities, business functions, and infrastructure, there are some important distinctions. 

At Sunrise, we help growing businesses evaluate these platforms through the lens of future scalability, integration flexibility, and operational complexity. Whether your focus is on tightening your financial management, improving supply chain efficiency, or driving operational resilience, this article will guide you through a practical comparison of NetSuite and Dynamics 365 Finance and Operations—so you can choose the ERP that grows with your business.

Dynamics 365 Overview

Dynamics 365 is a suite of applications that unifies processes across finance, supply chain, commerce, and customer service on a single platform. Its integration with other Microsoft products, such as Office 365 and Azure, provides a seamless experience for users familiar with the Microsoft ecosystem.

Built to support growing businesses, Dynamics 365 offers modular applications that can be implemented individually or together, allowing organizations to start with what they need and scale at their own pace. With built-in AI capabilities like Microsoft Copilot, businesses gain intelligent insights, improve decision-making, and automate repetitive tasks. Additionally, its low-code/no-code tools, such as Power Apps and Power Automate make customization accessible even without deep technical expertise.

Whether it's optimizing financial operations, managing complex supply chains, or improving customer experiences, Dynamics 365 delivers a connected and flexible solution for modern enterprises.

NetSuite Overview

NetSuite provides foundational inventory management capabilities, including demand planning, automated replenishment, and basic warehouse tracking. Its Saved Searches and customizable dashboards offer valuable visibility, making it well-suited for businesses with simple product catalogs and straightforward inventory requirements.

However, companies that require more sophisticated features—such as real-time serialization, complex global inventory coordination, or support for multi-dimensional SKUs—may find NetSuite's functionality limited in those areas.

Comparison table: NetSuite vs. Dynamics 365 Finance and Supply Chain

Below is a detailed comparison of the two systems:

Feature Category NetSuite Microsoft Dynamics 365
Merchandising & inventory management NetSuite offers essential tools for managing inventory across locations, including demand planning, replenishment automation, and basic warehouse tracking. Its saved searches and customizable dashboards provide useful insights, making it a strong fit for companies with relatively straightforward product catalogs and inventory needs. While NetSuite covers these functions, it may fall short for businesses needing advanced capabilities like real-time serialization, global inventory coordination, or multidimensional SKU management. Dynamics 365 excels in complex supply chain environments, offering multi-level product hierarchies, serial and batch tracking, and AI-driven demand forecasting. Its tight integration with warehouse automation systems, barcode scanning, and mobile inventory workflows make it ideal for manufacturers, distributors, and global retailers.

Dynamics 365 Supply Chain Management also supports cross-border inventory tracking, landed cost calculations, and real-time visibility across warehouses, empowering companies to enhance logistics performance and reduce stockouts or overstock situations.
Point of Sale (POS) NetSuite includes a native POS module and solid eCommerce functionality that works well for retail environments with modest channel complexity. It enables centralized data for sales, inventory, and customer transactions but often requires third-party tools or add-ons for a true omnichannel experience. While suitable for B2C brands with straightforward processes, NetSuite can be limiting for businesses that demand real-time store operations, complex promotions, or B2B commerce coordination across multiple regions. Pairing Microsoft Dynamics Finance and Supply Chain with Commerce delivers a powerful, end-to-end omnichannel solution. From in-store POS and mobile checkout to digital storefronts and marketplace integrations, the platform offers a single source of truth across every touchpoint. Built-in tools enable real-time customer insights, synchronized inventory, and dynamic pricing—empowering companies to elevate service and drive loyalty. The deep integration with other Dynamics 365 ecosystem apps like Customer Insights, Power BI, and Microsoft Teams enhances collaboration and personalization.
Financial management NetSuite provides robust out-of-the-box finance and accounting functionality, including general ledger, accounts receivable/payable, bank reconciliation, and basic financial analysis tools. Its SuiteBilling module supports subscription-based models, making it ideal for SaaS and services businesses. However, its capabilities can feel limited for organizations with complex reporting structures, intercompany transactions, or compliance needs tied to GAAP or IFRS standards. Dynamics 365 is built for global organizations with multidimensional and complex accounting needs. With features like multi-entity accounting, real-time budgeting, fixed asset tracking, subscription billing, cost accounting, and automated revenue recognition, Dynamics 365 Finance supports the needs of both finance teams and auditors.

The app's native support for local tax regulations, multi-currency consolidation, and project-based accounting makes it particularly attractive for global firms. Additionally, embedded Power BI dashboards and Microsoft Copilot enable predictive insights and scenario modeling to help finance leaders stay ahead.
Omnichannel capabilities Provides omnichannel support through its SuiteCommerce platform, which connects eCommerce, in-store POS, and order management systems. While it offers essential capabilities like real-time inventory tracking and customer data unification, delivering a fully integrated omnichannel experience may require additional setup, third-party tools, or custom development. Supports omnichannel retailing through Dynamics 365 Commerce, allowing for cohesive customer experiences across online and offline channels. Features include unified customer profiles, cross-channel loyalty programs, and seamless order fulfillment processes.
Customization & integration NetSuite promotes a “clicks not code” approach to customization. Using SuiteBuilder and SuiteCloud, users can configure fields, workflows, and dashboards with relative ease. Developers can extend functionality using SuiteScript, a JavaScript-based scripting language, and REST or SOAP APIs for system integration.

This low-code environment works well for companies with lighter customization needs, but limitations emerge when building deeply integrated, cross-platform business processes—especially those spanning CRM, finance, supply chain, and analytics.

 Dynamics 365 F&O stands out with its tight integration into the Microsoft Power Platform. Using Power Automate, Power Apps, and Azure Logic Apps, businesses can build custom workflows, automate approvals, and connect F&O to virtually any system—without heavy development overhead.

Additionally, Microsoft’s Dataverse provides a unified data layer across Dynamics applications, making integration with Microsoft 365, Power BI, and Teams seamless. AI-driven recommendations through Copilot enhance productivity by suggesting smart workflows based on user behavior and context.
User experience & interface Offers a functional, dashboard-driven interface with strong data visibility. However, the UI can feel dated and less intuitive, often requiring more training or technical input. Features a modern interface consistent with other Microsoft products like Office 365, providing a familiar environment for users. The system offers customizable dashboards, workspaces, and a responsive design, enhancing user engagement across
Scalability & deployment NetSuite is offered as a single-tier, multi-tenant SaaS solution, making deployment fast and upgrades automatic. This model is ideal for businesses seeking a streamlined path to ERP adoption without dedicating large IT resources. Dynamics 365 F&O provides enterprise-class scalability through modular licensing, regional Azure deployments, and flexible infrastructure configurations. Businesses can adopt what they need today—finance, supply chain, commerce—and scale into manufacturing, HR, or advanced analytics later.
Licensing & costs Its pricing includes bundled modules, which helps simplify procurement. However, that simplicity can lead to long-term trade-offs: limited control over upgrade timing, reliance on third-party solutions for industry-specific needs, and potential functional ceilings as business processes mature. The ability to control upgrade timing and deploy in specific geographies (for compliance or latency reasons) makes it highly attractive to global and multi-entity organizations. While initial licensing may seem higher, many businesses find the total cost of ownership (TCO) favorable over time due to fewer workarounds and more built-in functionality.
Customer support Offers tiered support plans, but advanced support often comes at a premium. While resources like the NetSuite Help Center and SuiteAnswers are available, users frequently rely on third-party consultants for in-depth support and system customization—something more streamlined in the Dynamics 365 partner ecosystem. Microsoft offers Standard, Premier, and Unified Support. Some Microsoft Partners offer ongoing support programs, from handling maintenance and upgrades to implementing new modules and capabilities.

What about AI capabilities in Dynamics 365 vs. NetSuite?

Dynamics 365 is ahead of the curve when it comes to built-in AI. With the introduction of Microsoft Copilot, Dynamics 365 brings conversational AI and generative insights directly into ERP and CRM workflows. Users can automate tasks like invoice creation, email drafting, and report generation using natural language. Additionally, its deep integration with the Microsoft Power Platform (Power BI, Power Automate, Power Apps) allows users to build AI-powered dashboards, automate decision trees, and analyze trends using predictive analytics — all without heavy coding.

Microsoft’s ecosystem advantage plays a big role here: businesses using Teams, Outlook, or SharePoint can experience AI-enhanced workflows across systems, making Dynamics 365 a very intelligent and connected solution out-of-the-box.

NetSuite, while good in automation and reporting, is still catching up in AI features. It does offer machine learning in some areas like cash flow forecasting, demand planning, and anomaly detection, primarily through its SuiteAnalytics and SuitePeople modules. However, much of the advanced AI functionality often requires integration with third-party tools or custom development.

Oracle has introduced AI innovations across its broader cloud ecosystem, and these features are gradually surfacing in NetSuite, but the experience isn’t as deeply embedded or accessible yet compared to Dynamics 365.

The bottom line? You might outgrow NetSuite, too

...and end up right back where you started, looking for a replacement ERP system. NetSuite is a strong contender for businesses looking for rapid deployment, foundational financial management, and streamlining operations across a limited number of entities. For organizations with standard workflows and modest customization needs, NetSuite is a compelling starter cloud ERP.

However, for companies navigating global operations, complex supply chains, advanced warehousing and logistics needs, and long-term scalability, Dynamics 365 Finance and Supply Chain is the clear winner.

  • Advanced planning capabilities: Embedded demand forecasting, MRP, and AI-driven insights enable smarter supply chain decisions.

  • AI roadmap: Microsoft Copilot delivers real-time, embedded AI across finance, operations, and customer engagement modules, no integrations required.

  • Power Platform: Build custom apps, workflows, and automation with low-code tools like Power Apps and Power Automate, fully integrated with your ERP.

  • Seamless omnichannel capabilities: Unify in-store, online, and back-office operations with Dynamics 365 Commerce for consistent customer experiences.

  • Modern, intuitive UI: A user-friendly, Microsoft-aligned interface that reduces training time and boosts adoption.

  • Automatic updates & innovation: Benefit from continuous improvements and feature rollouts without disruption.

  • Microsoft ecosystem integration: Deep, native connectivity with Teams, Outlook, Excel, Azure, and more, enabling truly unified business operations.

When your business demands more than the basics, Dynamics 365 isn’t just the next step; it’s the strategic upgrade.

Frequently asked questions

DYNAMICS 365 IS YOUR FOREVER SYSTEM

If you're deciding between Dynamics 365 and NetSuite, now is the time to explore your options. A smooth migration to Dynamics 365 can future-proof your business, reduce costs, and improve efficiency. Contact us today for a free assessment. Our experts will help you map out a cost-effective path forward and give you a blueprint for a successful ERP project.