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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
2nd
Average Rating
8.4
Reviews Sentiment
6.3
Number of Reviews
118
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of February 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 14.4%, down from 15.6% 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.
Cirvesh-Daga - PeerSpot reviewer
Offers an indispensable Order-to-Cash feature along with easy integrations, but the analytics features need improvement
SAP S/4HANA provides a standard setup process. Several third-party tools are available to integrate with the SAP ecosystem. Some customers of our organization find SAP S/4HANA very easy to use, and some are adopting the solution due to prior familiarity with the SAP ecosystem. The licensing changes implemented in Oracle JD Edwards have also made a few customers of our organization adopt SAP S/4HANA. The Order-to-Cash feature is indispensable and irreplaceable in SAP S/4HANA. Almost every customer I have worked with in my organization finds the Order-to-Cash feature extremely valuable. For Order-to-Cash using SAP S/4HANA, a company needs to consider the local regulations at one point. SAP can help with all such local regulations. I wouldn't recommend SAP S/4HANA for a small or medium-sized company. The integration capabilities of SAP S/4HANA are as good as those of its competitor products. A reliable middleware product will be needed in SAP S/4HANA especially if discrete ERP, MES and CRM are present in the project. The integration of SAP S/4HANA will also be dependent on the strategies and vision laid out by the enterprise architect. Integrations for the solution can be done in both ELT and ETL, and both has its pros and cons.

Quotes from Members

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

Pros

"The most valuable feature of Microsoft Dynamics 365 Business Central is cloud accessibility."
"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."
"It is easy to use, and it works very well for small-scale companies."
"Microsoft Dynamics NAV is good for smaller-sized companies."
"Our data is much more manageable than before."
"The most valuable features of Microsoft Dynamics 365 Business Central are the dashboards, ease of use, and flexibility."
"I like Microsoft Dynamics' simplicity. The interface is excellent, and it's a highly mature product. You can hardly find any bugs in the product."
"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 integration with Microsoft's AI capabilities."
"The tool's most valuable features are ease of use, high availability, and connectivity."
"S4HANA is a completely integrated solution. It's an end-to-end ERP system with strong manufacturing and financial integration, which is not common among ERPs. And it's a solution that's driven by industry best practices."
"The user experience is quite attractive, and maybe the efficiency around the consolidation part as well."
"The product rating is ten out of ten."
"SAP has many functionalities and a high level of detail so that you can manage all processes in detail without any issues."
"The in-memory processing capability is most valuable."
"The Fiori design is a valuable feature."
"SAP S/4HANA delivers all essential possibilities to customers for various sections. In the current modern age, we use SAP for graphical outputs, reports, and smartphone accessibility. If users want to see financial outputs via diagrams, we use SAP by Design. For specific confirmations via mobile app or web app, we use few other applications. If users want only source forms and not hard copies, we use AR forms."
 

Cons

"There are some aspects of the solution that is complex."
"The initial setup of the solution was quite complex and the troubleshooting involved with that needs to be improved."
"One aspect that could be improved in Microsoft Dynamics 365 Business Central is the visibility and accessibility of communication-related features, such as email integration."
"I would like to have more frequent updates."
"The performance and virtual machine backup is not good with this solution and need improvements."
"I wouldn't say that Microsoft Dynamics is very scalable."
"Customer service and support are mixed. Sometimes the support is quick, but other times it is very slow."
"It could be more stable."
"We are missing these standard packages here in Turkey. Every customer has to build their own solutions for regulatory needs, such as sending invoices to the authority."
"The tool needs to improve its interface and functionalities."
"While the solution contemplates a competitively priced model, its pricing could be cheaper."
"The theory-side of the solution needs to be improved."
"It requires a lot of planning to implement the product correctly."
"SAP S4HANA could improve by having a more seamless easier integration, faster integration. The overall implementation timelines should be reduced."
"When we want to raise a ticket on the SAP portal, the process takes a longer time, and there are many selections that confuse the user."
"The migration to SAP S/4HANA is hard."
 

Pricing and Cost Advice

"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."
"There are two types of licenses. One is the essential license in which everything is covered, and the next is the premium. If your company is a manufacturing or service management company, then you can go for the premium license because those two modules are the premium ones. You can manage your manufacturing activities and your service activities."
"In my opinion, the fees are reasonable."
"The on-premises model of Dynamics NAV is very expensive, hence our plan to migrate to Dynamics 365 Business Central, which appears to fit our needs better in terms of pricing. Compared to competitors, the cloud version of Dynamics is in the middle; not too high and not too low."
"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."
"The per user price of $100 a month is better than competitors."
"We have an agreement with Microsoft and pricing is okay for us."
"I would rate the pricing at around six to nine out of ten depending on the edition and deployment type."
"The solution might be expensive."
"The product is expensive."
"The solution's pricing depends on customers and how much discount they can get. However, the list price is expensive."
"It is on a quarterly basis. There are no additional costs. There is just the standard fee."
"Regarding pricing, I don't regularly deal with the financial aspects, but it is not a cheap solution."
"The price of this product is an issue for some customers."
"SAP S4HANA is expensive and for smaller businesses, it is very difficult for them to have the budget."
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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%
Financial Services Firm
7%
Government
7%
Educational Organization
39%
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?
With the public cloud, now everything is being pushed into BTP. This has created challenges, as it requires us to redo our coding and development. This presents a significant learning curve for our...
What is your primary use case for SAP S4HANA?
We work in a very niche area within the livestock industry. We have a SAP-certified solution for the poultry industry, and as part of our livestock solution, we cover poultry, dairy, and fishery. W...
 

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: January 2025.
832,138 professionals have used our research since 2012.