Microsoft Dynamics 365 vs. SAP: A Comprehensive Comparison

Enterprise Resource Planning (ERP) systems play a crucial role in streamlining business operations, integrating organizational components, automating internal tasks, and facilitating informed decision-making. Among the leading ERP solutions, Microsoft Dynamics 365 and SAP stand out. Both systems cater to a wide range of industries, offering functionalities from product development to order processing and quality control. However, when we compare these two giants, Microsoft Dynamics 365 emerges as a more efficient option across several attributes. Let’s dive into a detailed comparison.

Comparison Table: Microsoft Dynamics 365 vs. SAP

1Annual Maintenance (On-prem)22%16%
2ROI and Total Cost of Ownership (TCO)HighLow. ROI per dollar spent is approx 17 dollars
3Average Time to ImplementApprox 15 months8-12 months
4Time to stabilize and sync with business processesUp to 6 monthsMax 2 months
5Cost of ImplementationHighLow
6SuitabilityLarge OrganizationsAll types, especially SMEs
7Ease of customizationLowHigh
8Ease of usabilityLow – 50% users use only 40% functionalitiesHigh – Rated up to 25% more user-friendly
9Ease of integration with 3rd party appsLowHigh
10Built-in StrengthsHuge market shares, strong partner networkSimilar strengths, plus native integration to Office 365, Power BI, and Dynamics CRM
11Industry customer baseManufacturing, Big Pharma, Chemical, DistributionChemical, Pharma, BioTech, Retail, Consumer goods, Distribution, Manufacturing, Financial, Government
12Customer Relationship Management (CRM)YesBuilt-in native CRM functionality
13Supply Chain Management (SCM)YesYes
14Embedded reporting and BIYesBuilt-in reporting with Power BI integration

SAP – The Drawbacks

While SAP provides robust tools for cash management and accurately mapping goods in transit, it falls short in several areas:

  • Customization and Flexibility: SAP is less intuitive and less customizable than Microsoft Dynamics 365, making it a costlier ERP solution. This inflexibility can be a significant hurdle for large enterprises needing robust and standardized functionalities.
  • Implementation and Usability: The implementation process of SAP, although faster, often disrupts business operations and extends stabilization periods. Its complex UI and non-flexible features result in lower user-friendliness. Moreover, SAP does not offer dedicated training, complicating the learning curve for users.

Microsoft Dynamics 365 – The Advantages

Microsoft Dynamics 365 excels in several areas where SAP falters:

  • Cost Efficiency: With lower implementation and maintenance costs, Microsoft Dynamics 365 provides a better ROI and Total Cost of Ownership (TCO). The research indicates a return of approximately $17 for every dollar spent.
  • Implementation Time: Dynamics 365 boasts a shorter implementation period (8-12 months) and quicker stabilization (up to 2 months), minimizing disruptions to business processes.
  • Customization and Integration: High ease of customization and seamless integration with both Microsoft and third-party apps make Dynamics 365 a versatile solution for various business needs.
  • User-Friendliness: Dynamics 365 is rated significantly more user-friendly, with users finding it 25% more credible in achieving software advantages compared to SAP.
  • Market Reach and Industry Support: Dynamics 365 serves a diverse customer base, including sectors like retail, consumer goods, manufacturing, and government, offering built-in CRM functionality and robust supply chain management.

Real-time reporting and analytics empower financial teams to respond quickly to changes in the business environment and make informed strategic decisions.


In the ongoing debate of Microsoft Dynamics 365 vs. SAP, it’s clear that Dynamics 365 offers a more flexible, cost-effective, and user-friendly ERP solution. Its ability to cater to small and medium-sized enterprises (SMEs) and large organizations alike, combined with superior integration and customization capabilities, makes it an attractive choice for businesses seeking to streamline operations and maximize ROI.

For businesses considering an ERP solution, partnering with experts like Prudence Consulting, a trusted Microsoft Gold partner, can ensure a smooth and efficient implementation process tailored to your specific needs. Contact us today to explore how Microsoft Dynamics 365 can transform your business operations.

Also Read: Dynamics NAV 2018 to Dynamics 365 Business Central

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