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Microsoft Dynamics 365 Business Central vs SAP S/4HANA comparison

 

Comparison Buyer's Guide

Executive SummaryUpdated on Nov 3, 2024
 

Categories and Ranking

Microsoft Dynamics 365 Busi...
Ranking in ERP
3rd
Average Rating
8.2
Reviews Sentiment
7.2
Number of Reviews
63
Ranking in other categories
Activity Based Costing Software (2nd)
SAP S/4HANA
Ranking in ERP
2nd
Average Rating
8.2
Reviews Sentiment
6.6
Number of Reviews
106
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of December 2024, in the ERP category, the mindshare of Microsoft Dynamics 365 Business Central is 6.4%, down from 6.9% compared to the previous year. The mindshare of SAP S/4HANA is 15.7%, up from 15.2% compared to the previous year. It is calculated based on PeerSpot user engagement data.
ERP
 

Featured Reviews

StefaanVandesompele - PeerSpot reviewer
Provides end-to-end accounting and finance module at reasonable pricing
365 Business Central integrates with Office 365 to streamline the invoice approval process. This allows businesses to manage and approve invoices efficiently within a unified system. Our organization plans to transition to the Dynamics 365 environment, where various functions will be centralized. We will consolidate everything into one system instead of maintaining multiple databases for each country with local data. Dynamics 365 is fully integrated, which should address many of our challenges when we migrate to this new environment. We look forward to seeing how it performs in practice. The project is progressing well overall, though integrating it with other tools and ensuring Dynamics 365 operates smoothly can be challenging. Dynamics 365 is user-friendly and effective. However, a deeper understanding of its technical capabilities and architecture might be necessary to optimize its use fully. The software landscape is evolving, and achieving the best reporting and functionality with just a click can be complex. A clear vision of what you want to achieve with Dynamics 365 is essential. Proper preparation and configuration are crucial to achieving the desired outcomes. This principle applies not only to Dynamics 365 but to all software packages. Understanding the system's flexibility and adaptability based on your specific business needs is key to its successful implementation. Overall, I rate the solution an eight out of ten.
VARUN-JAIN - PeerSpot reviewer
The solution is highly scalable, with solid performance and integration
S/4HANA implementation is always complex because you need to configure it to work with your infrastructure. SAP only provides the license, not hardware, but they will connect you with a partner like HPE or IBM. It's extremely costly if you ask for SAP to implement it, but you can deploy through some vendor like HCL, TC, Infosys, or Capgemini, and then you need to enlist a hardware partner. The complexity also varies by industry. If it's a small industry with $40 million of revenue annually, the business processes will be simple. However, deployment is tricky for heavy manufacturing, energy, etc.

Quotes from Members

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Pros

"Microsoft Dynamics NAV's most valuable feature is the integration with other Microsoft solutions."
"The solution can scale."
"The security feature, particularly the encryption, which still builds sensitivity, is one of the most valuable features."
"Microsoft Dynamics NAV is brilliant and it's a different segment when comparing it with Dynamics AX. Dynamics AX is a larger product with much more features and it's aimed at a different segment of the market."
"The most valuable feature of Microsoft Dynamics 365 Business Central is the Teams application. I use Teams to share documents amongst my team members, have meetings, and talk to them."
"NAV covers everything from purchasing and selling items to invoicing. Everything is within NAV, so it's all very neat."
"We use Microsoft Dynamics 365 Business Central as CRM."
"The solution makes everything organized for my organization or enterprise. It makes workflows more than clear."
"SAP S4HANA has good performance and has allowed us to combine our systems."
"From a technological point of view, the in-memory database is one of the key highlights."
"I can verify and provide the overall financial aid report and also the management report."
"The speed of executing reports has increased significantly. We no longer need day-minus-one business processing."
"We use the solution for a retail customer. As an administrator, my activities involve system installation, troubleshooting, and performance management."
"Its analytics capabilities are valuable as they enhance data analysis and insights."
"We're able to get all our processes flowing together. We're able to make all of our business processes talk to each other."
"Only SAP payroll products can handle data management in IT and HR, processing millions of payrolls monthly for big organizations. S/4HANA payroll can manage massive volumes of data, process payroll in minutes, and provide outcomes. Other applications cannot process more than 4000-5000, but SAP S/4HANA payroll has been proven for 30-40 years."
 

Cons

"As our company grew we had to switch from Microsoft Dynamics NAV to a solution that was suited for larger-sized companies."
"The reporting tool has room for improvement."
"I wouldn't say that Microsoft Dynamics is very scalable."
"Microsoft Dynamics NAV could be improved in terms of exporting income statements and balance sheets. Currently, there is a feature, but you can only have the last three years. I spent some time trying to improve the KPI portion that exports the data, that already calculates the sub forms or subtotals, but they weren't able to break that up into different dimensions. They've now managed to crowd the separate table and you can export that, but it's only for the last three years. So, they could improve this solution by getting the chart of accounts or the account schedules to be exported, where you can go further than just three years with it."
"The performance and virtual machine backup is not good with this solution and need improvements."
"I would like a more modular and user-friendly interface."
"There are some aspects of the solution that is complex."
"I think Microsoft should improve on the process of how the user decides on a business workflow. For example, there may be some kind of drag-and-drop interface that lets us decide for ourselves how to develop the business workflows that fit our purpose."
"There is room for improvement in areas such as security features within SAP S/4HANA, which could further enhance the overall usability and effectiveness of the platform. To make SAP S/4HANA better, there's a focus on enhancing responsiveness and reducing operational costs. This includes improving automation within the system to address strategic needs and accommodate users who primarily speak English, which is an ongoing effort."
"If S4HANA has more AI and machine learning, it will be better and easier for reporting and dashboarding."
"The scalability could be better."
"I would like to see the AI included to help from a data standpoint."
"Their yearly licensing is expensive. Improvements are needed on the user experience level and digital work."
"SAP S/4HANA is a robust front-end solution compared to other web technologies available. However, screen design in SAP EFI might not be as extensive."
"The solution is complex technically because both an old and a new path exist."
"The procure-to-pay solution in the Contract Management angle could be better. If you look at it on Ariba, the Contract Management Life Cycle for Ariba is more robust. You can create documentation, SLAs, and NDAs. Apart from the procurement aspect of the contract, you have the legal side, but Ariba cannot do that. From what I've seen, the features of the procure-to-pay model in S/4HANA and their Contract Life Cycle Management side primarily focus on the procurement side. I believe it would be good if this solution could handle a part of the legal side. They will incorporate Extended Warehouse Management and Transportation Management into the S/4HANA cloud. Most big companies that use a solution like S/4HANA have a legal department within the organization. Suppose they can incorporate that to be in S/4HANA suites; I think it'll be good. It will be just like what we have with Transportation Management and Extended Warehouse Management. The user interface could be better. They have too much information on the interface, and our customers still keep complaining that it looks complex. Even though many things have changed, they still complain that the interface or the screen they see is a bit complex. It's only when they see the Fiori interface that their mind becomes a bit calm."
 

Pricing and Cost Advice

"The cost is one of the benefits. If you don't want to go for the full-blown finance and operations, the pricing model is a lot cheaper and has now switched to being based on a per-user subscription. So, if it's on cloud, you now have an expense instead of a large CapEx. If it's on-prem, you obviously still have to continue with the licensing model that they have, but if you compare the features and functionality, in terms of the price that you pay, I find it's better than other products. My answer on the pricing would be slightly different, depending on the country you're in and the return on investment, based on the size of the company. It's well-priced internationally. I think the new model is priced even better because it's now subscription-based and, if you go for cloud, the return on investment is a lot quicker and if it's expense, you can cap it. If you do take the on-prem version, the licensing is still priced as what it used to be, so that would depend on what country you are in."
"I think the pricing is the best; it's cost effective for sure."
"We have a perpetual license to use Microsoft Dynamics NAV."
"The price of the solution could be reduced to improve their offering."
"The solution is on the cloud and they provide 50 gigabytes of free space on their Microsoft Drive. The reason for this is that Microsoft is requiring you to upgrade all of your systems to Microsoft Dynamics 365 Business Central in order to effectively use the cloud. This means that if you are currently using a different version of Microsoft for a specific purpose that does not require this solution, it can be frustrating to have to spend money to upgrade to this solution just for the purpose of syncing with the cloud. Additionally, even if you do purchase Microsoft Dynamics 365 Business Central, there can still be issues with syncing between the on-premise and cloud clients. This can be especially frustrating as the cloud storage is not free and can be difficult to access even after purchasing."
"Currently, the product offers a starting price of $70 per user per month, which provides access to the complete ERP engine. It is highly reasonable."
"Its licensing is yearly. In addition to the licensing cost, there is the cost of hosting on Azure."
"In my opinion, the fees are reasonable."
"As for pricing, it depends on the business size and flow. If it's a medium-sized business, it might seem affordable, but for larger businesses with complex processes, it could be considered expensive."
"SAP S4HANA is expensive and for smaller businesses, it is very difficult for them to have the budget."
"Licensing works on a subscription model for the cloud version and it's a one-time fee for the on-premises version."
"It is never a cheap product since it is a prime tool in the worldwide market."
"I rate the pricing a ten on a scale of one to ten, where one is cheap and ten is too expensive. It is an expensive tool."
"In Nigeria, we have to consider currency conversion rates with the Euro and Dollar that impact the final cost. But I believe that it'll be cheaper in the cloud where SAP has to do the maintenance of the server and more in the long run."
"There is a license required for the use of this solution and we are on a monthly subscription. The cost of the solution is expensive compared to other solutions."
"Regarding pricing, I don't regularly deal with the financial aspects, but it is not a cheap solution."
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Answers from the Community

AM
May 2, 2023
May 2, 2023
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 ...
2 out of 3 answers
MM
May 2, 2023
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 MustafeezSAP Solution Architect & Project Manager
Avigayil Henderson - PeerSpot reviewer
May 2, 2023
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."
 

Top Industries

By visitors reading reviews
Computer Software Company
16%
Manufacturing Company
10%
Financial Services Firm
6%
Government
6%
Educational Organization
38%
Computer Software Company
9%
Manufacturing Company
9%
University
4%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft Dynamics NAV?
The platform offers a robust and comprehensive cycle for supply chain and inventory management, with features like minimum and maximum settings, dynamic monitoring of inventory levels, and integrat...
What needs improvement with Microsoft Dynamics NAV?
Implementing localizations when we use the system for multiple countries can be quite complex. There isn't a single solution available for all countries, and managing these localizations can be cha...
Are there any advantages of SAP S4 HANA over SAP Business One (SAP B1) apart from the cost?
SaP Business One is a complete solution for business management. The software applications are broad, ranging from accounting to project management and human resources. It is very versatile and com...
What needs improvement with SAP S4HANA?
The cost of their support services could be more affordable. It's currently an expensive proposition.
What is your primary use case for SAP S4HANA?
We have several different application scenarios that we are implementing, including procurement, sales, and finance.
 

Also Known As

Dynamics NAV, MS Dynamics NAV
SAP S4HANA
 

Learn More

 

Overview

 

Sample Customers

Harris Farm Markets, Mister Spex GmbH, Bounce Foods, Eurofin Services SA, Medica Medizintechnik, Associated Gaskets, Onduline, Sitka Surfboard Corporation, World Animal Protection
Nestle, O.C. Tanner, Sabre, New York Life Insurance Co., MEMEBOX, Siemens AG.
Find out what your peers are saying about Microsoft Dynamics 365 Business Central vs. SAP S/4HANA and other solutions. Updated: December 2024.
824,053 professionals have used our research since 2012.