Which ERP Solution is Best for You?

Enterprise resource planning is a comprehensive system that integrates all aspects of a company, including planning, manufacturing, sales, marketing, finance, human resources, and more. ERP systems are typically implemented through a single, unified platform that connects different departments and functions within an organization.

Both SAP and Oracle are industry giants when it comes to ERP solutions. They have invested heavily in developing functional ERP systems that meet the needs of businesses of all sizes and industries. As expected, Oracle Fusion Cloud and SAP S/4HANA were ranked leaders in the 2023 Gartner Magic Quadrant for Cloud ERP for Service-Focused Enterprises.

Choosing one of these ERP systems can be difficult, as both offer extensive features and benefits. Read to the end to determine which is best for your business.

SAP vs Oracle: comparison table

SAP versus Oracle: Pricing

Both SAP and Oracle do not publicly announce their rates on their websites. Potential buyers should contact the company for a personalized quote.

SAP pricing

SAP typically charges a license fee based on the number of users and modules required. Implementation costs can also vary depending on the complexity of the system and the level of customization required.

Additionally, SAP offers subscription-based pricing for its cloud ERP solutions, which may be more cost-effective for some companies. According to information published by SEIDOR, a trusted SAP partner, SAP Business One perpetual license starts at $1,357 through SEIDOR, while SAP's cloud-hosted subscription model starts at $110 per user per month.

Please remember that your actual cost may vary slightly or significantly depending on your specific business needs and the level of customization required. It may also cost different to go directly through SAP.

Oracle

Oracle also uses a licensing model for its ERP systems, with costs based on the number of users and modules required. Implementation costs may vary depending on the complexity of the system and additional services required. Oracle offers on-premises and cloud-based ERP solutions, with subscription-based pricing options for its cloud offerings.

According to publicly available data, the base price for Oracle's ERP Cloud service costs $625 per month, or $7,500 per year. Like SAP, your actual costs may vary depending on your specific requirements.

SAP may be perceived as more expensive than Oracle, particularly in terms of licensing fees and implementation costs. However, the total cost of ownership may vary depending on your business's specific needs and requirements.

SAP vs. Oracle – Feature Comparison

Customer relationship management.

Winner: Tie

SAP offers the SAP Customer Experience suite, which integrates CRM, marketing, sales, and service capabilities to provide a unified view of customer data. This allows companies to personalize interactions, analyze customer behavior and optimize sales processes. SAP's CRM module also integrates with other SAP solutions, such as finance and supply chain management, to provide a holistic view of the customer lifecycle.

Oracle's ERP system includes robust CRM capabilities within its Oracle CX Cloud Suite. It provides tools for sales automation, marketing automation, and customer service management, allowing businesses to drive personalized interactions, track customer interactions, and resolve issues. Integrating Oracle CRM with other Oracle ERP modules ensures data consistency and enables cross-functional collaboration, leading to a more consistent customer experience.

Artificial intelligence and machine learning

Winner: SAP

SAP integrates AI and ML capabilities into its SAP Leonardo platform, which offers various intelligent technologies such as machine learning, IoT, blockchain and analytics. These technologies can help your business automate processes, make predictions, and gain insights from your data.

There is also the HANA computing platform and SAP CoPilot, an AI digital assistant. SAP HANA is a high-performance in-memory database and application development platform that leverages AI and machine learning to optimize data processing and deliver real-time insights. SAP CoPilot is an AI-powered digital assistant that allows you to interact with SAP applications using natural language processing.

Oracle's ERP software is also loaded with AI. Oracle has integrated AI and ML capabilities across its entire suite of software solutions, including ERP, SCM, HCM, and CX. The company offers AI-powered supply chain financing, accounts payable, and more, allowing teams to automate tasks and optimize business processes.

Oracle also provides an AI digital assistant built to help you maximize the use of its platform. You can take advantage of big data and analytics tools that use natural language processing to simplify database searching and analysis.

Customization options

Winner: SAP

SAP ERP provides high customization flexibility through its modular structure and extensive configuration options. You can adapt the system to your business requirements by configuring various modules, fields and workflows. SAP offers several development tools and technologies, such as SAP HANA, SAP Cloud Platform, and SAPUI5, that allow you to create custom applications, reports, and extensions. This allows companies to tailor the ERP system to their unique processes and workflows, supporting their specific operational needs and improving the usability of the system.

Oracle ERP offers customization options through Oracle Fusion Middleware, which offers a complete set of tools to develop and integrate custom applications and extensions. You can leverage Oracle Application Express (APEX) to create custom reports, workflows, and interfaces. Oracle allows you to import and export data between APEX and ERP systems. While Oracle ERP may not offer the same level of out-of-the-box configuration as SAP, you can still customize the system to some extent to suit your business requirements.

Financial management

Winner: Oracle

SAP ERP provides robust financial management modules through its SAP S/4HANA Finance platform. The system offers integrated financial accounting, accounts payable and receivable, general ledger, asset accounting and control functionalities. SAP S/4HANA Finance leverages real-time data processing and analysis to provide accurate and up-to-date financial information. The platform supports financial planning and analysis with advanced budgeting, forecasting and consolidation capabilities.

Oracle ERP offers a complete set of financial management solutions that give companies a complete view of their financial situation and results. The platform includes modules for accounting center, reporting and analytics, accounts payable and assets, revenue management, accounts receivable, collections, expense management, joint venture management, and US federal finance. These modules enable organizations optimize financial processes, track transactions, manage assets and liabilities, and generate detailed financial reports.

Oracle Risk Management and Compliance also leverages AI and ML technologies to strengthen financial controls, prevent cash leaks, and enforce audit compliance.

Pros and cons of SAP

SAP Advantages

• It offers integrated artificial intelligence, analysis and automation of intelligent processes.
• Monitoring sales and performance objectives.
• Comprehensive functionality.

Cons of SAP

• Expensive for small businesses and startups with limited budgets.
• Complex initial setup process.

Pros and cons of Oracle

Oracle Advantages

• Multidimensional self-service reports.
• Easy to use and quick to implement.
• Users praise its accounting skills.

Oracle Cons

• There are rare performance issues.
• Limited customizations compared to SAP.

Should your organization use SAP or Oracle?

Choose SAP yes. . .

• Your organization relies heavily on other SAP products.
• You need highly customizable, modular ERP software that can adapt to complex business processes and specific industrial requirements.
• Your company prioritizes advanced analytics and real-time information.

Choose Oracle yes. . .

• Your company already has an existing infrastructure that relies heavily on Oracle software.
• Appreciate strong security features and compliance standards.
• You want a system with robust financial management and accounting features.

Methodology

To write this review, I collected primary data about each product through online research and user reviews. I also considered expert reviews, case studies, and industry reports to gain a comprehensive understanding of SAP and Oracle capabilities and features. I also analyzed the strengths and weaknesses of each platform based on the experiences and feedback of real users.