Which ERP solution do you prefer: SAP S/4HANA or Microsoft Business Central?
Hello peers,
I work for an SMB EPC company.
I am currently researching ERP solutions. Which solution do you prefer: SAP S/4HANA or Microsoft Dynamics 365 Business Central? What are the pros and cons of each solution?
Hello Amit, I am posting this answer on behalf of Gene Hammons, a Director at a small tech services company. He says: "Hey Amit - I believe there are huge price differentials between SAP S/4 HANA and MS D365 Business Central (the new web version of the old Navision code base). In most of our clients evaluating SAP we're comparing that to the D365 Finance & Operations (the new web version of the old Axapta code base). Pricing-wise, we'd see $3m for SAP, $1.5m for D365 F&O, and $400k for D365 BC. There is Business One from SAP that would fit in the middle of those Dynamics price points - and it's all relative, a smaller company would cost less, a larger company more - but you see where the competition would play. We do get a lot of calls from companies who have licensed D365 Business Central as part of their Microsoft IT stack and try to implement it themselves. After a couple of years, they start calling around and find out you need a real consulting team to get anywhere - and that's not free. Anyway - the key is who you partner with, make sure they have plenty of experience in your size company, in your industry - and let your business requirements drive the evaluation. The pros and cons of each system are only relevant depending on the requirements of your particular business model - any of these have the ability to be a total nightmare or productivity dream depending on where you try and fit them."
System & Network Engineer at a tech services company with 1-10 employees
Real User
Top 10
2023-05-02T19:17:40Z
May 2, 2023
Hi Amit, I have experience with both SAP S/4HANA and Dynamics. SAP is a Tier 1 system, meaning it is meant for very large multinational companies. If you are looking for a midmarket solution, Dynamics Business Central is a better alternative, if you are in a country that is supported either by Microsoft or by an ISV partner. An ISV is an extension on top of Business Central that offers productized functionality (it is as if MSFT has extended it). For your company, it is possible an ISV with business domain-specific logic is possible. With the right partner and extensions (standard products), you can reduce your ERP implementation effort by 80%. Although SAP is a very good high-end ERP solution, it has a price and implementation cost. For the midmarket, MSFT is trying to reduce this radically with a combined offering of an ERP system with a low-code extension platform (Power Platform). From my experience, never go for on-premise, always go for cloud. Also use your own cloud environment, not a partner one. It is your ERP system, never get a partner to take you hostage. I have experience in the domain your business is operating in. I know many run on a Business Central platform.
I believe I can safely recommend SAP S/4HANA as a better ERP solution for your organization. Being directly involved in multiple SAP implementation projects, I have seen organizations transform and grow with S/4HANA. The only concern is the cost as I see it because SAP S/4HANA is costly as compared with other products.
Another thing that you need to consider is the change in management in your organization. SAP encourages organizations to adopt best practices and in doing so, users are not always facilitated. So how flexible your organization is when it comes to adapting the change is a million-dollar question.
Let me know if you need further details and we can specifically discuss accordingly.
Regards, Muhammad Tuaha Mustafeez SAP Solution Architect & Project Manager
Hello Amit, I am posting this answer on behalf of Gene Hammons, a Director at a small tech services company. He says: "Hey Amit - I believe there are huge price differentials between SAP S/4 HANA and MS D365 Business Central (the new web version of the old Navision code base). In most of our clients evaluating SAP we're comparing that to the D365 Finance & Operations (the new web version of the old Axapta code base). Pricing-wise, we'd see $3m for SAP, $1.5m for D365 F&O, and $400k for D365 BC. There is Business One from SAP that would fit in the middle of those Dynamics price points - and it's all relative, a smaller company would cost less, a larger company more - but you see where the competition would play. We do get a lot of calls from companies who have licensed D365 Business Central as part of their Microsoft IT stack and try to implement it themselves. After a couple of years, they start calling around and find out you need a real consulting team to get anywhere - and that's not free. Anyway - the key is who you partner with, make sure they have plenty of experience in your size company, in your industry - and let your business requirements drive the evaluation. The pros and cons of each system are only relevant depending on the requirements of your particular business model - any of these have the ability to be a total nightmare or productivity dream depending on where you try and fit them."
Hi Amit, I have experience with both SAP S/4HANA and Dynamics. SAP is a Tier 1 system, meaning it is meant for very large multinational companies. If you are looking for a midmarket solution, Dynamics Business Central is a better alternative, if you are in a country that is supported either by Microsoft or by an ISV partner. An ISV is an extension on top of Business Central that offers productized functionality (it is as if MSFT has extended it). For your company, it is possible an ISV with business domain-specific logic is possible. With the right partner and extensions (standard products), you can reduce your ERP implementation effort by 80%. Although SAP is a very good high-end ERP solution, it has a price and implementation cost. For the midmarket, MSFT is trying to reduce this radically with a combined offering of an ERP system with a low-code extension platform (Power Platform). From my experience, never go for on-premise, always go for cloud. Also use your own cloud environment, not a partner one. It is your ERP system, never get a partner to take you hostage. I have experience in the domain your business is operating in. I know many run on a Business Central platform.
Hello Amit,
I believe I can safely recommend SAP S/4HANA as a better ERP solution for your organization. Being directly involved in multiple SAP implementation projects, I have seen organizations transform and grow with S/4HANA. The only concern is the cost as I see it because SAP S/4HANA is costly as compared with other products.
Another thing that you need to consider is the change in management in your organization. SAP encourages organizations to adopt best practices and in doing so, users are not always facilitated. So how flexible your organization is when it comes to adapting the change is a million-dollar question.
Let me know if you need further details and we can specifically discuss accordingly.
Regards,
Muhammad Tuaha Mustafeez
SAP Solution Architect & Project Manager