IT Central Station is now PeerSpot: Here's why

What product would you recommend and why: SAP S/4HANA or Microsoft Dynamics NAV?

Hello, I'm looking for recommendations about the following two products: Microsoft Dynamics 365 and SAP S/4HANA. 

What would be your choice and why? Tnx.

PeerSpot user
67 Answers

Mohan-S - PeerSpot reviewer
Top 20Real User

I concur with the other responders here. MS Dynamics 365 and SAP S/4 HANA are not in the same league. Will need more info about your requirements and budget. 

SAP S/4 HANA on-premise is expensive, but, in good hands will do well, especially on a really solid hardware config.... cloud-based is somewhat less expensive, but you cannot customize... 

MS Dynamics Business Central is less expensive but has most of what an ERP package should have... and in good hands, the recent versions are fairly stable....but the config has to be accurate and your connectivity must be stable, otherwise, it will be a horrendous experience... I would not suggest MS Dynamics NAV now... it better to look at Business Central...that is improved NAV on the cloud.

Gene Hammons - PeerSpot reviewer
Top 5LeaderboardReal User

So Microsoft Dynamics NAV is being replaced, as MS recodes the product for a cloud based deployment called Business Central (BC) - very low priced right now, almost entry level ERP pricing. There's also been some significant problems as not all the functions from NAV were included in Business Central from day one. Many clients found themselves with a 'not-ready-for-prime-time' product. We had a spectacularly failed implementation with a client who did not follow our recommendations and went with BC back in Dec 2019 - and they picked a very inexperienced partner because it was the technology group of the CPA firm that did their taxes (not a good reason for any ERP decision). 

We only work with proven implementation partners for that exact reason. 

SAP of course is a proven Tier One leader in ERP - but more costly - you'll need several people on staff to manage it, entry level costs are $3m - $5m with rollouts of more than a year. 

We have had success with another Microsoft product, the former Dynamics AX, now called Finance & Operation (F&O). In the hands of a good team we've launched some pharma manufacturers with F&O at a $1.2m price point while SAP estimates were in the $3m range. Again, a near Tier One application, they used outside consultants for support for the first couple of years, and brought in someone in-house and they expanded her department to two 18 months later - still far less than supporting SAP, but a big program with a lot of powerful options. 

The move from AX to cloud based F&O has not been as painful as Business Central and we haven't heard the horror stories - but also, F&O is so complex it's not handled by the average CPA firm or as a simple add on from the same Microsoft reseller that provides Office and Azure. 

Anyway - your budget may only cover Business Central, but there are cloud based ERP products that have been cloud based for 20 years, not 20 months. Your requirements may demand SAP  - or you may be referring to SAP Business One which is a mid market product (whole new set of issues there). 

But you're in an area where lots of companies bring in a software selection consultant because we've only scratched the surface here. As Daniel Robus recommends, you might need to look wider - because if you're looking to choose between SAP and Business Central - by definition, one of them doesn't belong in the same discussion. 

Muhammad Shaamel - PeerSpot reviewer
Top 5Real User

Adding on to other contributors' opinions, if you are spoilt for choice and understand the nuances of good architecture, ease of customization, viable budget to expend on deploying the ERP - Acumatica ERP is soon becoming a force to reckon with for the SMEs.

Microsoft D365 BC formerly Microsoft Dynamics NAV has become more robust and integrated and a joy to deploy and use within the acceptable budget one needs for ERP implementation.

SAP the old warhorse, engineered with the finest and well thought out design architectures true to all German products if deployed well is a wonderful and seamless experience but if the Systems Integrator doesn't do justice and is unable to tame the warhorse, this can be a disastrous run for all besides the bludgeoning costs incurred for deploying this fine piece of architecture.

Daniel Robus - PeerSpot reviewer
Top 5LeaderboardReal User

Hi - that is such a wide question which requires more information. They are both great products but they need to be implemented in the correct way. If you are working in the mining environment you will never be in trouble if you have SAP behind you. 

If you are looking at a general organsiation that might be growing and expanding but want to start small then Dynamics is a good option....

so, it depends. But there are even better options out look wider.

Sunil Saraf - PeerSpot reviewer

Thanks dear friends for responding. The cues forwarded are of immense value. I notice that the crux of all responses mostly relate to cost of acquisition, choosing right implementation partner, resource costs, look for additional alternatives & non comparability of between the two. While these are fantastic fundamentals, succinctly put across and are deeply appreciated, I seek for further knowledge from IT Magi with regards to few specific areas that are important to carry the search further. 

These are;Suitability for Commodity Oriented Manufacturing Company, with costing & treasury, customised sales Order/contract management, multiple methods of stock valuation, Product & Process costing, Costing & Financial P&Ls, Product Contribution Management, Price parity management, Multiple methods Margin/Realizations calculations, Mark to markets.

Hope this will help in focusing on suitable option that may be suggested between the two. Thanks in advance for taking out your precious time to respond to the ignorant.



Gene Hammons - PeerSpot reviewerGene Hammons
Top 5LeaderboardReal User

@Sunil Saraf So with the list of requirements, MS Dynamics Finance & Operation or SAP will probably be your contenders to evaluate. You may also want to look at cloud based NetSuite with the new FP&B (formerly marketed as Hyperion) module to see if that works for you. Your more expensive AX/SAP will handle everything more out of the box, but have added expense and complexity. NetSuite gives you the base and SuiteApps provide the remaining functionality. 
Your choice now is to find the program that best suits your business' internal culture and secure a good reselling partner to work with. 

Evgeny Belenky - PeerSpot reviewer
Community Manager

Hi @Gene Hammons ​, @Antonio Lira ​and @Okay Akdeniz . Can you please chime in? Thanks.

Buyer's Guide
Microsoft Dynamics NAV vs. SAP S4HANA
May 2022
Find out what your peers are saying about Microsoft Dynamics NAV vs. SAP S4HANA and other solutions. Updated: May 2022.
599,220 professionals have used our research since 2012.