Which ERP Solution Is Best for You?

Enterprise resource planning is an all-inclusive system that integrates all aspects of a business, 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 cater to the needs of businesses of all sizes and industries. Unsurprisingly, Oracle Fusion Cloud and SAP S/4HANA were ranked leaders in the 2023 Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises.

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

SAP vs. Oracle: Comparison table

SAP vs. Oracle: Pricing

Both SAP and Oracle do not publicly advertise their rates on their websites. Potential buyers must contact the company for a custom quote.

SAP pricing

SAP typically charges a licensing 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 needed.

Additionally, SAP offers subscription-based pricing for their cloud ERP solutions, which may be more cost-effective for some businesses. According to information published by SEIDOR, a trusted SAP partner, the SAP Business One Perpetual License starts at $1,357 through SEIDOR, while the SAP Cloud Hosted Subscription Model starts at $110 per user per month.

Remember that your actual cost may vary slightly or significantly based on your specific business needs and the level of customization required. It may also cost differently going directly through SAP.

Oracle

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

According to publicly available data, the base pricing of 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 can 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 functionalities to provide a unified view of customer data. This allows businesses to personalize interactions, analyze customer behaviors and streamline 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, enabling businesses to drive personalized engagements, 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 cohesive 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 company automate processes, make predictions and gain insights from your data.

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

Oracle’s ERP software is also AI-charged. Oracle has embedded AI and ML capabilities across its entire suite of software solutions, including ERP, SCM, HCM and CX. The company offers AI-powered supply chain finance, accounts payable and more, enabling teams to automate tasks and optimize business processes.

Oracle also provides a digital assistant AI built to help you maximize the use of its platform. You can leverage analytics and big data 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 tailor 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, enabling you to build custom applications, reports and extensions. This allows businesses to adapt the ERP system to their unique processes and workflows, supporting their specific operational needs and enhancing system usability.

Oracle ERP provides customization options through Oracle Fusion Middleware, which offers a comprehensive suite of tools for developing and integrating custom applications and extensions. You can leverage Oracle Application Express (APEX) to build custom reports, workflows and interfaces. Oracle lets you import and export data between APEX and ERP systems. While Oracle ERP may not offer the same level of out-of-the-box configurability as SAP, you can still customize the system to some extent to adapt it to their 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 controlling functionalities. SAP S/4HANA Finance leverages real-time data processing and analytics 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 comprehensive suite of financial management solutions that give businesses a complete view of their financial position and results. The platform includes modules for accounting hub, reporting and analytics, payables and assets, revenue management, receivables, collections, expense management, joint venture management and U.S. Federal Financials. These modules enable organizations to streamline financial processes, track transactions, manage assets and liabilities and generate detailed financial reports.

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

SAP pros and cons

Pros of SAP

• Offers embedded AI, analytics and intelligent process automation.
• Sales target and performance monitoring.
• Comprehensive functionality.

Cons of SAP

• Expensive for small businesses and startups with limited budgets.
• Complex initial set-up process.

Oracle pros and cons

Pros of Oracle

• Multi-dimensional, self-serve reporting.
• Easy to use and fast to implement.
• Users praise its accounting capability.

Cons of Oracle

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

Should your organization use SAP or Oracle?

Choose SAP if . . .

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

Choose Oracle if . . .

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

Methodology

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