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

 

Comparison Buyer's Guide

Executive SummaryUpdated on Nov 3, 2024

Review summaries and opinions

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

Categories and Ranking

Microsoft Dynamics 365 Busi...
Ranking in ERP
3rd
Average Rating
8.2
Reviews Sentiment
7.0
Number of Reviews
64
Ranking in other categories
Activity Based Costing Software (2nd)
SAP S/4HANA
Ranking in ERP
1st
Average Rating
8.4
Reviews Sentiment
6.4
Number of Reviews
119
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of March 2025, in the ERP category, the mindshare of Microsoft Dynamics 365 Business Central is 6.3%, down from 6.9% compared to the previous year. The mindshare of SAP S/4HANA is 13.7%, down from 15.9% 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.
Deepak Madhavan - PeerSpot reviewer
Implementation simplifies ERP management with comprehensive data integration and visibility
A lot of people would say the pricing. SAP is seen as quite expensive even now. It doesn't work for smaller or medium optimizations. The licensing and pricing could be looked at. In Brownfield migration, the trade-off between greenfield and brownfield means you either keep it clean or match the business requirements. Sometimes, it's not possible to do both. While ValixAPI provides significant support in making those decisions and the SAP consultant is very useful, we are still dependent on past history and how it was originally set up. I wouldn't call that a real disadvantage, yet more accessible consulting would be beneficial. Incorporating all other cloud products, like APO or IPP, into the S/4 house might also help.

Quotes from Members

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

Pros

"For me, the main strengths of Microsoft Dynamics NAV are that it's user-friendly and light. These are its major wins. I have used other ERPs and their architecture were a little more complex when compared to the Microsoft Dynamics NAV architecture."
"It is easy to use, and it works very well for small-scale companies."
"It is a stable solution."
"We use Microsoft Dynamics 365 Business Central as CRM."
"The most valuable features of Microsoft Dynamics 365 Business Central are the dashboards, ease of use, and flexibility."
"It's quite useful for our production line, and it's easy to configure to our requirements."
"I have found the flexibility to be very valuable. It's highly flexible, and at least for us, it has been effective. It is also highly functional."
"The most important feature of Microsoft Dynamics NAV is that it lets us centralize all our information so that we don't need to rely on any other software outside of Microsoft."
"C4C is a good application of SAP S/4HANA, and it helps many companies."
"I am really happy to use HANA since it is highly syndicated with public office systems."
"I find everything I need in S4/HANA."
"It is a full-fledged, stable solution."
"The product rating is ten out of ten."
"The integration is quick to implement and very user-friendly."
"You can build S/4HANA in S/4HANA, and you can build SAP as your end-to-end SAP, which covers everything you need."
"The finance module is the best thing. It integrates well with other modules, which makes it the best ERP available."
 

Cons

"Some of the control aspects such as auditing can definitely be improved. For example, auditing is not very easy, and the user permissions are complicated."
"The solution is stable, but it could improve."
"There is a lot of improvement needed in the top model, such as better integration with logistics, quality management, and data modeling for all revenue types."
"Implementing localizations when we use the system for multiple countries can be quite complex."
"The solution must provide more AI features."
"The solution is not best suited for larger-scale businesses."
"Since it's complex for a layperson user to understand the solution, it would be better if the solution provided some training resources."
"The solution could include the retail tool in the native version."
"SAP is seen as quite expensive even now. It doesn't work for smaller or medium optimizations."
"The scalability could be better."
"Extensions to SAP S/4HANA have room for improvement, especially in integration with low-code/no-code platforms. Creating these extensions through Fiori transactions is more tedious than customers would like. Although the SAP build process has become more linear, further improvements could provide a huge benefit."
"You will not see convenient user experiences with SAP S4HANA's website or application."
"Maybe its user interface and reporting can be improved across the board, but it is manageable."
"SAP S4HANA could improve by having a more seamless easier integration, faster integration. The overall implementation timelines should be reduced."
"If I can highlight one point that could be improved, when we talk about other ERPs, like Oracle, nowadays these ERPs provide free integration with other ERPs. For example, there is an API for banks integrated into every tool and every product form requires that bank integration in order to give real time data into the ERP. But SAP is charging a lot for that particular bank integration scenario and I think it should be free because other ERPs are providing this feature built in to the ERP. People always ask us about the integration and how much it will cost to go with that solution, so people are thinking about this."
"The setup cost is expensive. I would compare it to the difference between a Ferrari and a Rolls Royce. That's the level of distinction."
 

Pricing and Cost Advice

"The license changes every year. Sometimes it's for fixed users, and sometimes it's for concurrent users."
"The price of the solution is reasonable."
"NAV might be a little pricey for a small or medium-sized company, but all the solutions out there are."
"You have to pay a yearly licensing fee for the solution."
"We have a perpetual license to use Microsoft Dynamics NAV."
"The solution's cost is reasonable."
"We have an agreement with Microsoft and pricing is okay for us."
"There is an annual cost of using Microsoft Dynamics NAV. The cost is approximately 140,000 INR."
"We pay for an annual license."
"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."
"The tool's price can be reasonable for large organizations, but it might not be suitable for small organizations with a small number of users."
"It's quite an expensive solution"
"The product is expensive. On a scale of one to ten, one being the lowest price and ten being the highest, I rate the product price as seven or eight."
"Licensing costs are not transparent"
"Regarding pricing, I don't regularly deal with the financial aspects, but it is not a cheap solution."
"I have heard others saying that SAP is only for big companies that have money."
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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
15%
Manufacturing Company
10%
Retailer
7%
Financial Services Firm
7%
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 is your experience regarding pricing and costs for Microsoft Dynamics NAV?
The pricing for Dynamics 365 Business Central is reasonable. The value for money is very high.
What needs improvement with Microsoft Dynamics NAV?
There is a need for improvement in consolidation and multi-country master data management.
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?
There could be a bit more competitiveness in their licensing and pricing.
What is your primary use case for SAP S4HANA?
It is a great product to be implemented for different industries for my customers. Can it be used globally?
 

Also Known As

Dynamics NAV, MS Dynamics NAV
SAP S4HANA
 

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: March 2025.
842,194 professionals have used our research since 2012.