7 Critical Questions to Ask Before Upgrading to an ERP for Your Hybrid Business Model

Choosing an ERP is one of the most important decisions you’ll make as a finance or operations leader. For companies combining hardware, software, and services, the stakes are even higher.

The right ERP will unify your operations, improve compliance, and fuel profitable growth. The wrong fit can slow you down and drain resources.

To help you navigate this decision, here are seven questions you must ask:

Does the ERP Natively Support Hybrid Revenue?

Many ERPs were built either for traditional product companies or pure-play SaaS - not both. Make sure your platform can:

• Manage physical inventory and serialized fulfillment.

• Support subscription billing, renewals, and usage-based pricing.

• Combine these revenue streams in a single order and invoice.

NetSuite was designed to handle hybrid revenue natively, reducing reliance on costly customizations.

How Robust is Revenue Recognition Automation?

ASC 606 compliance requires clear rules for allocating revenue across multiple elements in a contract. Your ERP should:

• Automate revenue allocation and deferral.

• Generate accurate schedules without manual intervention.

• Support mid-contract changes like upgrades or cancellations.

This is where many mid-market solutions fall short.

Can It Integrate with Your Existing Ecosystem?

Most companies still need to maintain connections to PLM, field service tools, or e-commerce platforms. A modern ERP should offer:

• Pre-built connectors to common applications.

• Open APIs for custom integration.

• A proven track record of integrating complex ecosystems.

What Level of Visibility Will We Gain?

Disconnected reporting is a common frustration. Ask:

• Can the system provide real-time dashboards by product, region, and customer?

• Is reporting configurable without heavy IT or external support?

• Will my executive team have self-service access to the metrics that matter?

Will It Scale with Our Growth?

Your transaction volume and product complexity will increase. Will you bring on different lines of business? Are acquisitions part of your future growth plans? Confirm that the ERP can scale without requiring massive headcount increases.

Look for:

• Cloud architecture with elastic scalability.

• Proven success stories from companies of similar size and model.

• Predictable costs as you grow.

Do the Implementation Partners Understand Hybrid Revenue Businesses?

Generic implementers may not understand the nuances of combining hardware and software revenue. Ensure your partner can:

• Configure ASC 606 automation correctly.

• Design workflows for RMA, warranty, and renewals.

• Ensure you maintain adequate inventory levels.

• Guide change management for teams used to fragmented systems.

What’s the Real Total Cost of Ownership?

Go beyond license fees. Factor in:

• Implementation and data migration.

• Custom integrations.

• Training and change management.

• Ongoing support and upgrades.

A cheaper sticker price often comes with hidden costs in time, complexity, and future rework.

Why Leading Hybrid Revenue Companies Choose NetSuite

Companies in Security & Surveillance, IoT, Agritech, and Consumer Electronics trust NetSuite because it delivers:

• Unified billing and fulfillment.

• Automated compliance.

• Real-time insights to drive growth.

At Sky High ERP, we specialize in guiding hardware-enabled software businesses through a smooth, risk-mitigated transition.

Need help with your ERP evaluation process?

Schedule a no-obligation intro call with our experts to run through NetSuite's capabilities and explore how we can help you take your hybrid revenue company to the next level.