Microsoft Dynamics 365 vs SAP – An overview


ERP systems play a vital role in accelerating the operations of a business. The solutions integrate components of your organization, automate internal tasks, and help in making intuitive decisions in processes within a company. As a result, ERP software enables you to achieve your goals faster by effectively managing data and allowing streamlined processes.

Microsoft Dynamics 365 and SAP are leaders in this field. They help users operating in retail and provide them with product development functions to order processing and quality control functionalities. However, Microsoft Dynamics 365 has proved to be much more efficient than SAP in multiple attributes, some of which are listed below.

Comparison Table: MICROSOFT DYNAMICS 365 vs SAP



Annual Maintenance (On-prem) 22% 16%
2 ROI and Total Cost of Ownership (TCO) High Low. According to research, ROI per dollar spent on Microsoft Dynamics 365 is approx 17 dollars
3 Average Time to Implement Approx 15 months 8-12 months
4 Time to stabilize and sync with business processes Upto 6 months Maximum of 2 months
5 Cost of Implementation High Low
6 Suitability Large Organizations Organizations of all types, especially SMEs (Small & medium-sized Enterprises)
7 Ease of customization Low High
8 Ease of usability Low – Research shows that about half of the SAP users use only 40% (approx) of SAP functionalities High – Research shows that Dynamics 365 users rate it up to 25% more user friendly and 10% more credible that SAP to achieve the same advantages of the software
9 Ease of integration with 3rd party apps Low High
10 Built-in Strengths Huge market shares and resource diversities, strong partner network Huge market shares and resource diversities, strong partner network, native integration to Office 365, Power BI, and Dynamics CRM
11 Industry customer base Manufacturing, Big Pharma, Chemical, Distribution Chemical, Pharmaceutical, BioTech, Retail, Consumer goods, Distribution, Manufacturing, Financial and government.
12 Customer Relationship Management (CRM) Yes Comes with built-in native CRM functionality (Microsoft Dynamics 365 CRM)
13 Supply Chain Management (SCM) Yes Yes
14 Embedded reporting and BI Yes Built-in reporting and integration capabilities with Power BI

SAP – The drawbacks (or) What went wrong?

Though SAP offered tools for cash management and accurately maps goods in transit, they turned out to be less intuitive and less customizable than Microsoft Dynamics AX. The implementation time for SAP is relatively faster than Microsoft Dynamics 365, but it comes with disruptions during the process that affect functionalities for an extended period. As a result, features become less user-friendly and non-flexible, which becomes a hurdle for large enterprises that need robust and standardized functionalities. In addition, the lack of flexibility in customization makes SAP a costlier ERP solution. Furthermore, the company does not provide any dedicated training for the customer, Understanding SAP, and all its functions can take time and the complicated UI only makes it more difficult.

DemandDynamics – On-Demand expertise

Your business deserves an implementation partner with experience and expertise, one that is willing to take the time to understand your, needs, goals, and system environment.

DemandDynamics is a trusted Microsoft Gold partner with many years of Microsoft expertise, providing clients with best-in-class services. Our team works “on demand.” The costs don’t revolve around a subscription model; you pay only for the hours used and the services utilized.

DemandDynamics has been home to successful CRM implementations for years. Perhaps it is time for a quick phone call with one of our experts who can help you decide your next important steps.


1. What is the difference between SAP and Microsoft Dynamics?

One of the primary differences between Microsoft Dynamics and SAP is that Microsoft Dynamics is ideal for SMEs (Small and Medium-sized enterprises). At the same time, SAP is suitable for large enterprises, and understanding the SAP system can take time as it has a complicated UI that is not user-friendly and comes with features that are not flexible. In comparison, Microsoft Dynamics is relatively more flexible and easier to use. In addition, Microsoft Dynamics easily integrates with other Microsoft apps but only a few third-party apps, whereas SAP integrates with most third-party and SAP applications.

2. Which is better? SAP or Microsoft Dynamics?

Microsoft Dynamics 365 outshines SAP Business One as it comes equipped with several features which provide scalability, flexibility, and lower implementation and ownership costs, and significantly benefit both start-ups and the largest of enterprises.

3. Is Microsoft Dynamics similar to SAP?

Microsoft Dynamics 365 is a suite of cloud-based business applications that integrates customer relationship management (CRM) and enterprise resource planning (ERP), productivity applications, and artificial intelligence tools. In contrast, SAP is enterprise software to improve customer relations and manage business operations. There are several differences in the features of both that vary greatly.

4. Can Microsoft Dynamics 365 replace SAP?

Understanding the SAP system can take time as it has a complicated UI that is not user-friendly and comes with features that are not flexible. On the other hand, dynamics 365 Business Central offers several advantages to SMEs and large-sized enterprises. It ensures flexibility, scalability, a browser-based UI, and mainly lower implementation and ownership costs which is why Business Central is several steps ahead compared to SAP and has the potential to replace SAP.

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