When it comes to Enterprise Software, two names quickly stand out: Microsoft and SAP. These two vendors have been battling for decades for leadership in the ERP market, from enterprise to SME.
We understand ERP as that business planning software that helps companies organize business-related information and manage business processes and resources. From this perspective, ERP manages financial, commercial, purchasing, human resources, manufacturing and logistics information, for example.
It is therefore natural that specialized media constantly draw comparisons between them. One of the latest comparisons is the one carried out by Enterprise APPS Today
This is the result of the analysis performed.
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SAP S/4HANA
Within the set of applications offered by SAP for different company sizes, SAP S/4HANA is the one that offers the most functionality to the customer. One of the most appreciated features is machine learning, which provides real-time business insights and pattern collection to help automate business processes.
Although SAP S/4HANA is suitable for many types of industries, it is mainly used in manufacturing and distribution, either on-premise or in the cloud.
SAP S/4HANA Highlights
- Its use is recommended for larger companies but is also suitable for medium-sized companies*.
- Financial planning and analysis stand out.
- Finance optimization and automation
- Integration of risk management and compliance
Microsoft Dynamics ERP Software
Microsoft Dynamics 365 is made up of several applications that work together to form a coherent solution. Dynamics 365 Supply Chain Management, Dynamics 365 Finance and Dynamics 365 Human Resources allow synchronized work thanks to their centralized database, which helps streamline the various business applications.
As expected, Microsoft Dynamics integrates with Outlook, Skype for Business and OneNote.
Microsoft is used in the distribution and real estate industries and can be deployed on-premise or in the cloud.
Microsoft Dynamics Highlights
- Its modular design, which allows its applications to work independently.
- Mobile applications
- Customization of the user experience through Artificial Intelligence.
- Real-time customer insights
SAP VS MICROSOFT
Microsoft Interface VS SAP Interface
One of Microsoft’s most important assets is the public’s familiarity with its products, especially Microsoft 365 (Office 365), something Microsoft knows well and exploits perfectly.
The Microsoft Dynamics user interface is similar to the interface of the rest of Microsoft’s products, which makes it easier to use. The use of Word, Excel and Outlook is perfectly integrated into Dynamics. Users can generate workflows that help automate repetitive tasks.
According to Eric Kimberling of Third Stage Consulting, “Microsoft Dynamics is quite flexible, but this flexibility must be kept under control so as not to make functions created with Microsoft Flow, for example, too complex.”
SAP is a product with more complex use and a less user-friendly interface than Microsoft’s, requiring users more time to master the interface. SAP’s functionality includes intuitive data dashboards and a good connection between reporting panels and the database. On the other hand, SAP allows the creation of workflows, but through a more complex process that requires the assistance of a programmer.
Kimberling says, “In general, SAP offers a more standardized approach.”
SAP VS Microsoft by Organization Size
Microsoft’s modularity allows companies to choose the functionality they need, which enables large and medium-sized companies to reduce acquisition, implementation and training costs.
In contrast, SAP is more rigid. The implementation period is longer, which increases the cost of the project, which can make it inaccessible for small companies and an obstacle for large ones.
SAP VS Microsoft by Industry Fit
Microsoft Dynamics is suitable for a wide range of industries, but is used in construction, distribution, insurance, manufacturing and real estate.
SAP is used in manufacturing and distribution, Information Technology (IT), information services, financial services, real estate and the healthcare sector.
Kimberling promotes SAP for its suitability when it comes to complex manufacturing processes.
SAP VS Microsoft by Cost
In terms of initial setup costs, SAP’s costs are higher, starting from $500,000 USD.
Microsoft’s modular configuration allows these costs to be reduced, which is ideal for small and medium-sized companies where the required functionality is greatly tailored. Microsoft offers payment plans ranging from $8 USD to $185 USD per user per month, although it is true that Microsoft’s cost can skyrocket depending on the number of end users.
Final Thoughts
In general, SAP software is recommended for companies that want highly standardized processes without excessive customizations.
Microsoft’s modular architecture, integration with other products from this vendor and familiarity with the interface make it more recommendable for medium-sized companies.
Source: SAP vs Microsoft: ERP Software.
- Based on values in the USA. The SBA defines a small business as one with fewer than 500 employees, and a medium-sized business as one with between 501 and 5,000 employees.