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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
6.9
Number of Reviews
65
Ranking in other categories
Activity Based Costing Software (1st)
SAP S/4HANA
Ranking in ERP
1st
Average Rating
8.4
Reviews Sentiment
6.3
Number of Reviews
123
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of June 2025, in the ERP category, the mindshare of Microsoft Dynamics 365 Business Central is 6.6%, up from 6.5% compared to the previous year. The mindshare of SAP S/4HANA is 11.1%, down from 16.5% 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

"This is readily available and affordable, as well as user-friendly and simple to use in my opinion."
"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."
"Microsoft products are very good in general. This product is flexible, easy to use, intuitive, and has good capabilities."
"The solution has good dashboard functionalities and export functionalities."
"Microsoft Dynamics NAV is good for smaller-sized companies."
"The security feature, particularly the encryption, which still builds sensitivity, is one of the most valuable features."
"We are getting more features after switching to Microsoft 365."
"The initial setup is easy - because it stands on Microsoft offerings, it's simple and intuitive to use."
"The solution is flexible, has a lot of functionality, and has the ability to deliver more security than other comparable solutions."
"SAP S4HANA has good performance and has allowed us to combine our systems."
"The processes have been reduced from almost 10 steps to four or five steps. It's really been simplified."
"The most valuable feature is the inbuilt standards included in SAP that customers can adopt easily. Also offers to customize it based on the specific requirements."
"The tool's most valuable features are ease of use, high availability, and connectivity."
"S/4HANA is so much faster today than it was before. High performance is one of the best features, but the backbone of S/4HANA is its integration capabilities. They've also shifted to a focus on user experience."
"We're able to get all our processes flowing together. We're able to make all of our business processes talk to each other."
"I find everything I need in S4/HANA."
 

Cons

"The solution can improve by having better integration with Microsoft PowerBI and reporting."
"The initial setup of the solution was quite complex and the troubleshooting involved with that needs to be improved."
"It could be more stable."
"The solution could include the retail tool in the native version."
"There is a need for improvement in consolidation and multi-country master data management."
"Customization and costs could be improved."
"There is room for improvement in terms of compatibility."
"I work in Pakistan, and many people want desktop solutions. They don't want to work on the cloud. They want a strictly on-premises solution."
"The solution could have a better user experience. However, they are working a lot on the user experience and they have come up with various applications, such as mobile applications. This was lacking over the last two years."
"The cost is quite expensive, and some people notice this compared to other solutions."
"I find the technical support from SAP to be very difficult to get as we do not have a one-window solution."
"The product's high cost is an area of concern where improvements are required."
"Lacks ability to easily mass upload which has become a necessity for industry."
"SAP S4HANA is not suitable for all-size companies. If you have a small company there are better fit solutions for your needs."
"The difficulty level of the initial setup depends on the person's skills. If you know the basic knowledge of the database, then it will be easy, otherwise, it will be very difficult."
"There could be a bit more competitiveness in their licensing and pricing."
 

Pricing and Cost Advice

"The solution's license is costly compared to other CRM tools."
"I would rate the pricing of this solution at three out of five."
"I give the solution a seven out of ten for pricing."
"Its licensing is yearly. In addition to the licensing cost, there is the cost of hosting on Azure."
"The deployment cost us $70,000 and we pay around $18,000 annually for support, which we find to be expensive."
"The tool’s licensing is yearly. The solution is cheaper compared to other ERP products from Oracle or SAP."
"There is an annual cost of using Microsoft Dynamics NAV. The cost is approximately 140,000 INR."
"Business Central charges a monthly fee of $70 to $100 per user."
"The product is expensive."
"Pricing is one area where S/4HANA has room for improvement. It's too costly for many people. They have come up with"
"The price of SAP S4HANA could be cheaper."
"It is costly in computing because these VMs have a huge CPU and utilization."
"We're not sure yet. I think it was six figures a year, over 100,000. It has straight-up licensing fees."
"It is an expensive solution. On a scale from one to five, with five being the most expensive, I would rate the price at four."
"It's quite expensive. However, it can be expensive to maintain the solution."
"The problem with SAP is that it offers two licenses, namely runtime license and enterprise license. If you have a runtime license, then you are doomed since you can't take any data out from the tool."
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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
14%
Manufacturing Company
11%
Retailer
7%
Comms Service Provider
7%
Educational Organization
24%
Manufacturing Company
12%
Computer Software Company
11%
Financial Services Firm
5%
 

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?
The advanced warehouse functionalities are not available and should be improved. The purchase requisition process is also lacking, and more advanced functionalities for intercompany consolidations ...
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?
SAP S/4HANA has room for improvement because we are still exploring functionality, and while most modules are implemented or supported by the partner, we are still in the process of exploring. Righ...
What is your primary use case for SAP S4HANA?
I use SAP S/4HANA because most of the manufacturers in pharmaceuticals are using it. We migrated from Microsoft Dynamics to SAP S/4HANA. My relationship is with solutions in retail as we are custom...
 

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: June 2025.
856,873 professionals have used our research since 2012.