SAP Business One software can be a preferred choice for SMBs and startups, whereas, large companies can opt for Microsoft Dynamics 365. But then, from regular updates to the advanced platform, SAP Business One has an upper hand over Dynamics 365. Therefore, you should consider various aspects and consult a reliable ERP services provider before making any decision.

2. SAP Business One or Microsoft Dynamics 365?
Which ERP is better for Your Business?
When it comes to the selection of the right ERP, you need to focus on the type and nature of your business.
Today, thanks to technological advancements, we have several ERP systems are available including SAP
Business One, Microsoft Dynamics 365, and Oracle ERP. But, which ERP is right for your business? You may
find this question difficult because you do not have any idea of trends and factors to be considered while
selecting the ERP software for your company. The simple truth is that every vendor will try to persuade you
that their solution is the best. What is important is that you have the correct information at your fingertips that
will allow you to evaluate which solution offer the best fit for your business.
Here we cover some noteworthy features of both SAP Business One (B1) and Microsoft Dynamics 365 to
assist you to choose the most suitable ERP for your business. Though an unending battle between these
ERPs is going on, we can identify the right one with the help of a quick comparison of their key features. But
before that, let’s have a brief introduction of both these players in the ERP market.

3. Microsoft Dynamics 365
Developed and backed by Microsoft, Dynamics 365 for
Finance and Operations is indeed a strong contender with a
low costs and easier implementation as compared to SAP
Business One and other players. It is built on the robust
Microsoft infrastructure and it can be readily integrated with
a plethora of Windows business apps like GoToMeeting,
TouchMail, and OneNote. A simple look and feel with a short
learning curve is another plus point of Microsoft Dynamics
365. Microsoft Dynamics 365 does however require many
different applications in order to deliver a full experience as
with SAP Business One. One of the key messages from
Microsoft is a requirement to only pay for items required,
however, experience has shown that this often leads to a
misleading state of affairs when an initial lower cost of entry
becomes rapidly increased depending on the requirements of
the business. This is completely different from the SAP
Business One experience where all modules are included in
the initial purchase meaning no future costly surprises.

4. SAP Business One (B1)
SAP is arguably the leader in the
ERP software market. With over
232,000 customers and revenue
of €16. 22 billion, SAP has proven
that is an ideal ERP for
organisations. SAP Business One
ERP can meet the diverse
business needs of MNCs and
SMEs alike. Though its cost is
somewhat higher than other ERP
players, SAP B1 is preferable for
the companies that look for
consistent and advanced ERP
software. SAP B1 has a
straightforward implementation
and third-party solution can
customise the software with ease.

5. Quick Look- Specifications

6. Let’s have a side-by-side comparison between SAP Business One and Microsoft
Dynamics 365.

7. Cost comparison between SAP Business One and Microsoft Dynamics 365
The real cost of ERP software is known
as Total Cost of Ownership (TCO) that
includes license fees, subscription
fees, software training and
customisation cost, required
hardware, and support cost.
SAP Business One price starts from
$49 per month per user. It has a
higher cost than Dynamics 365. In the
above table, SAP B1 has a pricing
score of 8, which shows a higher
average cost of ERP software.
However, it is advisable to contact a
reputable SAP Business One partner
to understand the pricing structure of
SAP B1 and get a quote for a
customised enterprise-grade license.

8. Comparison of Features between SAP Business One and Dynamics 365
In the competitive business scenario, it is necessary to consider the
features and functionality of ERP software. You should select the
ERP system that streamlines the process by managing workflows,
providing reports, and meeting various business needs.
Let’s discuss some aspects of Dynamics 365 before concluding this
article. Since its launch in the year 2016, Dynamics 365 has
delivered a confused message. It seems that the Dynamics 365
team has no clear direction as they keep on changing messages.
Also, the parent company Microsoft is yet to successfully merge
four acquired ERPs to come up with a next-gen solution. As
recently as November 2018, Dynamics again changed track with
the announcement that On-Premise would continue to be
available after stating that it would only be available as a cloud
offering.
When it comes to SMEs, it is proven that SAP B1 has a clear
direction and unlike Dynamics 365, it offers control and flexibility
while keeping the enterprise needs in focus. What’s more, the price
of Dynamics 365 has changed multiple times since its release and
still, it looks more unsettled than before. ERP solution can impact
on your business for a long-term and increase the long-term cost if
it fails to deliver the desired objectives.

9. Major Issues with Dynamics 365
COMPLEX UPGRADE
Both Dynamics AX and NAV solutions are too complex to upgrade on a regular basis. Update of these solutions
is also expensive and therefore, SMBs may force to stick with an older version for quite a long time. Earlier
versions of AX and NAV use a different architecture leading to significant costs when migrating custom reports
and customised features to newer versions. In many cases, Microsoft resellers will often pitch a
reimplementation rather than an upgrade as it is more cost effective.
However, there is then the requirement to rebuild customisations and reports. Often these are ‘removed’ under
the smokescreen of there being more functionality in the core product and the client does not need to upgrade
everything. A significant GAP analysis is therefore required. Dynamics is a victim therefore of its’ own success.
In the early years of NAV and AX they were sold as platform products that were easy to customise rather than
focus on the core functionality. This gave rise to heavily customised implementations. The subsequent cost of
the upgrade was often as much, if not more than the original implementation. This has led to many customers
being version trapped where it is not cost-effective to upgrade to a later version.
Here are a few major issues with Dynamics 365 that can restrain the growth of SMBs in medium
to long term.

10. Major Issues with Dynamics 365
HEAVY DEPENDENCE ON MICROSOFT PRODUCTS
This is one of the biggest drawbacks of Dynamics 365. The solution heavily relies on Microsoft products
like Cortana, Power BI, and the like. Now, as a subscriber, you need to take separate subscriptions of
these products and integrate them with Dynamics 365. It increases the overall product cost significantly
and also creates the issues related to the integration of Microsoft products with the ERP solution. In
many instances, Microsoft will include Office 365, Power BI and other stack products in the initial costs
without showing what the year 2 costs will be once the new subscription kicks in. You need to purchase
additional third-party add-ons for reporting and analytics as well such as ZAP reports, Jet Global etc. as
there is a known weakness in the standard Dynamics reports which are costly to build as they require
developer input rather than a system Admin being able to build these. As mentioned previously, SAP
includes these elements as core. SAP owns Crystal reports, which is an acknowledged leader in
reporting solutions.
Here are a few major issues with Dynamics 365 that can restrain the growth of SMBs in medium
to long term.

11. Major Issues with Dynamics 365
THIRD-PARTY INFLUENCE ON CORE PRODUCT
Dynamics 365 needs the support of third-party add-ons for proper functioning. As a
result, disparate databases and high dependence on connectors hamper the
functionality of the solution. Only developers can complete or edit the Dynamics reports,
whereas SAP enables users to build their reports.
HIGH DELIVERY TIME
Due to complexity and integration issues, Dynamics solutions are bound to miss the
deadlines. Most of Dynamics ERP solution providers offer ‘Time & Material’ style quotes
instead of fixed price quotations. Even consultants are uncertain about the deployment
time as Microsoft has replaced AX and NAV versions with the Cloud-based architecture.
Here are a few major issues with Dynamics 365 that can restrain the growth of SMBs in medium
to long term.

12. Major Issues with Dynamics 365
IDEAL FOR BROAD INDUSTRIAL SECTORS
DY365 does not aim at providing industry and vertical-specific solutions. It addresses broad sectors like Distribution, Manufacturing,
Retail, etc. Partners need to build customised solutions for specific verticals. Dynamics vertical solutions are therefore built, sold and
supported by the partner community without a single point of support.
Here is a useful list of features of SAP Business One and Microsoft Dynamics 365 that can assist you to evaluate both the platforms.
SAP BUSINESS ONE: Sales Reporting, Business Intelligence Module, CRM and Human Resources Module, Inventory Management,
Manufacturing and Procurement Module, Accounting Module. What’s more, SAP Business One is highly scalable and provides great
application breadth to address the ever-changing needs of growing businesses.
DYNAMICS 365: Budgeting & Forecasting, Core Accounting, Time and Expense Tracking, and Fund Accounting are some of the major
features of Dynamics 365. It has multilingual capabilities and offers a quick transfer of information. But then, cross-platform support of
Microsoft Dynamics 365 is limited and it is difficult to integrate this tool with a non-Microsoft product.
Here are a few major issues with Dynamics 365 that can restrain the growth of SMBs in medium
to long term.

13. Reference
https://www.silvertouchtech.co.uk/blog/sap-business-one-vs-microsoft-
dynamics-365/
https://sap.silvertouchtech.co.uk

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