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Enterprise resource planning (ERP) is a fully inclusive software system that can streamline every aspect of your business. ERP software, such as those from SAP and Oracle, can increase productivity by gathering the necessary data from numerous sources in one easy-to-visualize space. The software can help manage products from inventory to supply chain to pricing and can aid in the HR department with employee resources, retention and training.
If you’ve spent even a full minute researching ERP systems, you’ve likely already come across SAP and Oracle, two monoliths in the ERP software world. But how do you choose between these two major tech companies, especially when both offerings seem so similar? We’ve broken down the differences between the two companies and laid out why one might be a better fit than the other for your business.
SAP Vs. Oracle: At a Glance
Almost as long as commercial software has been available to businesses, ERP software has also been around in some form. ERP technology has long been a cornerstone of both SAP and Oracle’s efforts to bring together financial records for enterprise businesses.
It can be hard to tell the difference between SAP vs. Oracle ERP from the outside because the ERP software market appears, at least at first glance, fairly homogeneous. In addition to consolidating and streamlining internal business processes, both these systems integrate sales departments, manufacturing and supply chains for financial accounting. Furthermore, they each provide centralized databases for the entire enterprise to refer to when making critical business decisions, acting as a single source of truth. As a result of this centralized database, enterprise corporations are able to increase their use of business intelligence software as financial data across the company is stored in one place.
Although both SAP and Oracle claim to have solutions for all sizes of businesses seeking growth, the price tag may be prohibitive if not impossible for a smaller or medium-sized company. For rapidly expanding businesses with lots of moving parts, including procurement, supply chain and multiple locations, the software is worth the money.
SAP
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Pricing
Quote-based (reportedly starts around $108 per user per month)
Artificial intelligence
Integrates with the SAP HANA technology
Standout features
Multilanguage and multicurrency support
Pricing
Quote-based (reportedly starts around $108 per user per month)
Artificial intelligence
Integrates with the SAP HANA technology
Standout features
Multilanguage and multicurrency support
Why We Picked It
First launched by five former IBM employees in 1972, SAP has grown into one of the largest business software players in the industry. SAP’s products are designed to help businesses efficiently centralize and streamline key processes and data to make smarter, better decisions in real-time, mitigate and manage risk and drive more profitable growth.
SAP’s HANA computing platform is one of the most powerful of its kind and it is upon this platform that SAP’s Business One ERP software is based. With customers as big as Microsoft, as niche as Carhartt and as small as the Great Lakes Cheese Company, SAP has software options for any kind of business.
Pros & Cons
- Free 14-day trial
- Both cloud and on-site deployment available
- Includes benefits administration module and numerous software integrations
- Lacks transparent pricing
Oracle
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Pricing
Quote-based (reportedly starts at $625 per month)
Artificial intelligence
AI-based risk management and mitigation
Standout features
Reviewers highlight as great option for financial and resource management
Pricing
Quote-based (reportedly starts at $625 per month)
Artificial intelligence
AI-based risk management and mitigation
Standout features
Reviewers highlight as great option for financial and resource management
Why We Picked It
Another early Silicon Valley startup, Oracle was first formed as Software Development Laboratories in 1977. As with SAP, the company has grown into one of the largest and most ubiquitous of business software players in the game with hundreds of thousands of customers big and small using various Oracle products to maximize profits and streamline business operations.
Oracle offers a cloud-based platform, meaning customization, updates and support are all quicker and easier than an on-site system. Businesses from Chipotle to Spotify to Red Bull Racing have all used the Oracle Cloud to develop, expand and grow their organization.
Pros & Cons
- Highly ranked by businesses big and small in 2022 TrustRadius report
- Comprehensive financial suite with strong budgeting, pricing and accounting
- Integrates with other Oracle Cloud applications to provide cohesive view of all parts of a business
- Pricing is not publicly available
How the Companies Stack Up
A high degree of financial focus is evident in both SAP’s and Oracle’s ERP offerings. Accounting and reconciliation-based financial software are common features and present the ability to simplify recordkeeping, consolidate across departments and locations and integrate sales and procurement across entire supply chains.
In addition to supporting multiple currencies and languages, both platforms provide regulatory compliance settings and forms as well as real-time data management. To facilitate faster analysis of diverse financial records and increase revenue, these features also incorporate advanced computing capabilities, such as AI and machine learning (ML).
| SAP Business One Professional | Oracle Fusion Cloud ERP | |
|---|---|---|
| Accounting | Standard features such as accounts payable (A/P), accounts receivable (A/R) and fixed asset management | Standard and advanced features covering accounts payable to asset management retirement and amortization |
| Budgeting | Basic budgeting features for managing and executing general planning | Advanced tools including asset lifecycle management in addition to standard budgeting features |
| Pricing | Straightforward pricing tools to manage product pricing | Pricing tools can match market, currency, exchange rate and calculate profit margins, rebates and discounts |
| Human Resources (HR) | Well-designed employee portal, payroll and e-recruiting functionality to help with both retention and employee turnover | Good reporting capabilities including visual representations |
| CRM | Integrates marketing, sales and finance to create a whole story of customers to help with contextual sales | Good marketing support |
| AI and ML | HANA computing platform is basis of all SAP offerings and AI digital assistant "CoPilot" makes data accessible | AI tools like Digital Assistant are built into all parts of Oracle software and use natural language to sort databases |
Accounting
Accounting features, such as A/P. A/R and fixed asset management are offered by both SAP and Oracle ERP systems.
With Oracle, financial management and reporting are made more reliable and governance, risk management and compliance (GRC) requirements are incorporated. Oracle is proud of its risk management solutions, which help to enforce enterprise-wide compliance and automate some industry-specific compliance requirements.
However, SAP’s risk management tools can still help your business identify and better understand risk factors and prevent cash leakage as well as enforce policies.
With Oracle, you can implement tools based on common processes. For example, the Asset Management to Retirement module covers the entire lifecycle of an asset, from acquisition to amortization to disposal. A point-of-sale (POS) approach is also used in “Transaction to Cash Position,” integrating it with long-term financial information.
Budgeting
SAP’s software contains relatively basic budgeting capabilities, such as managing and executing general planning, however, Oracle’s ERP system is significantly better.
Oracle offers a specialized tool called “Asset Lifecycle Management,” which enables you to utilize the financial potential of your equipment and other facilities as well as handle typical budgeting needs for businesses.
Pricing
When it comes to pricing, Oracle’s offerings outdo SAP’s basic features as well. With Oracle, you can adjust your base prices based on market segment, currency, exchange rate and more. It can also manage profit margins, rebates and discounts using set guidelines.
HR
In terms of HR management SAP offers a plethora of additional tools beyond what Oracle brings to the table. Several HR functions may be managed by SAP and users are able to find critical information about them all in one place. In addition, employees can access and update their information through a dedicated portal.
In addition to payroll, SAP ERP software provides e-recruiting functionality that helps companies retain employees and reduce turnover.
Even though Oracle’s reporting capabilities aren’t as robust as SAPs, the visual representations allow for quick communication. If you’re looking to make more HR decisions based on data, this aspect could be especially important to you. By visualizing your company’s data, you will be able to see the history and future of your company quickly.
CRM
With Oracle, you can plan campaigns and budgets on a single platform while SAP offers cross-functional processes relating to finance, procurement and marketing.
SAP’s Customer Account Management tools can help your business with nearly every aspect involving the customer. Providing access to your customers’ histories allows you to deal with lead generation more effectively. Additionally, this tool integrates with marketing, sales and finance, giving you a complete picture of your customer’s history with the business and potential ongoing needs. With more knowledge of your customers, you can market in context and use smarter selling strategies.
Sales-order management gets high marks from us for both solutions. SAP casts a wide net and supports distributors of every size and across every industry segment. Oracle’s strengths are its reporting and data features.
Featured Partners
AI and ML
Both SAP and Oracle integrate AI, machine learning and automation into their software but each uses these tools in different ways. SAP’s HANA computing platform, first introduced in 2008, essentially drives all of SAPs offerings providing automation, predictive analytics and machine learning tools throughout SAP’s products. In addition to its platform being built on HANA, SAP also offers an AI-driven digital assistant called “CoPilot,” which helps individuals access the deep analytics and data without requiring a human brain to dig through old reports.
Oracle’s software features the use of AI and ML as well as with tools, such as Supply Chain Finance, Accounts Payable and more driven by embedded AI. The company also offers its Digital Assistant AI to help customers get the most out of the platform. Oracle offers analytics and big data tools that use natural language processing to aid managers with database searching and analysis. Oracle also offers Oracle Database which offers similar benefits to SAP’s HANA platform.
Cost of SAP Vs. Oracle
Neither SAP nor Oracle offer public pricing, which makes it difficult to determine exactly how much either solution will cost your business to implement. There are also many different pricing packages and plans to consider when it comes to determining how much you’ll pay for either platform. A customized package with full implementation and support could be as high as a five- to six-figure investment, depending on the size and scope of your business while a one-user subscription to SAP’s cloud-based model is between $100 and $150 a month.
As just one example, SEIDOR, a trusted local partner of SAP, lists SAP’s Cloud Hosted Professional Plan at $132 per user, per month, and the SAP Business One Perpetual License at $3,213 per user.
Additionally, Oracle’s Fusion Cloud Service costs between $150 and $200 per user, per month, based on its Global Price List released in December 2022. With that in mind, these are surface-level examples from vendors that offer many different plans and configurations. Your mileage will likely vary.
Customer Reviews & Reputation
Both SAP and Oracle receive mixed reviews when it comes to customer feedback, but both maintain strong reputations as the forefront of the ERP market—especially for larger, enterprise-sized companies. All told, both platforms have a lot to offer any business looking to leverage the benefits of an ERP system.
Top SAP and Oracle Alternatives
While SAP and Oracle are great options for those businesses especially centered on financials, other ERP software may be better suited to your company whether due to the size or focus of your business.
Top alternatives to SAP and Oracle include Microsoft Dynamics 365, Katana Manufacturing ERP and Cougar Mountain Denali Summit. If you are looking specifically for inventory management, check out our Best Inventory Management Software reviews. For those businesses looking for supply chain management support, we’ve prepared a review of the Best Supply Chain Management Software.
| ERP Provider | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Our Pick For | Standout Features | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|
| Microsoft Dynamics 365 |  | 5.0 |  | Best overall | Customer return and repair tracking, work order assigning and stock replenishment predictor | Learn More | ||
| Katana Manufacturing ERP |  | 5.0 | | Manufacturing companies | Production planning, manufacturing costs tracker and purchase order (PO) management | |||
| Cougar Mountain Denali Summit |  | 2.8 |  | Nonprofits | Fraud prevention, prebuilt financial reports and donor and grant management | |||
| QT9 |  | 2.8 | | Life science Companies | Real-time inventory control, manufacturing automation and purchasing management | |||
| AccountMate |  | 5.0 | | Financial management | Customer inventory manager, consolidated ledger and bank reconciliation | |||
| Acumatica |  | 2.3 |  | Role-based solutions | Role-based views and dashboards, barcode scanning and project quote management | |||
| Syspro |  | 2.3 | | Distribution companies | Sales analysis, goods in transit system and charge-back management |
Bottom Line
ERP software can be a game changer for businesses of many sizes. The solutions these software offer drive better decision-making and help organize and control data to provide management with the tools needed to keep things running smoothly. Ultimately, the best option for your business will depend entirely on your team’s unique needs, budget, size and other factors.
SAP ranks high, thanks in part to its flexibility and powerful functionality. SAP’s ERP software can be used by any businesses from compliance-heavy medical practices to the smallest, most remote companies. On the other hand, Oracle is an excellent choice for businesses looking for a robust platform that can scale with them as they grow. Businesses that need feature-rich software with lots of customization and integrations will find that Oracle gives them everything they need and more when it comes to highly specialized functionality.
Frequently Asked Questions (FAQs)
What are the different types of ERPs?
In general, there are three different types of ERP systems: Cloud-based, on-premise and hybrid solutions. Many other classifications exist, but the primary division among ERP systems involves implementation. For more insight, check out our list of the Best ERP Systems.
How do ERP systems work?
ERP systems comprise integrated modules or applications connected with a shared database. You can choose the modules relevant to your business’ needs. For more information, check out our comprehensive guide to ERPs.
What are the most common ERP modules?
Each ERP system features its own set of modules. The most common ones, however, include finance, manufacturing, procurement, inventory management, warehouse management and CRM.
What are the benefits of an ERP system?
An ERP system offers greater productivity and potential by streamlining and automating core business functions and reporting, helping businesses more quickly gather, process and act on data using real-time insights. ERP systems also help improve risk management.
FAQs
Which ERP system is better SAP or Oracle? ›
SAP's software contains relatively basic budgeting capabilities, such as managing and executing general planning, however, Oracle's ERP system is significantly better.
Is SAP better than Oracle? ›SAP has better event management, giving you greater insight and supply chain visibility. But Oracle has better APS, allowing you to better track costs and allocate resources more efficiently. Winner: SAP and Oracle are tied for supply chain management capabilities.
What is the main difference between Oracle and SAP? ›While SAP is based on the applications' core functionality, Oracle is based on the variety of functionalities it could provide. In simple words, SAP focusses mainly on the capabilities it provides for the functionalities and not on expanding the varieties.
Why is SAP better than other ERP solutions? ›As Compared to other ERP Systems SAP Needs Fewer Customization: SAP has various innovative functionalities compared to other ERP system. Thus, it requires minimum customization which can slow down the implementation time.
Why SAP ERP is better than Oracle? ›SAP ERP, specifically SAP Business ByDesign, is better than Oracle because of its all-in-one platform with powerful functionalities, scalable customizability, top-notch level of security, and cost-effective pricing.
Who is bigger SAP or Oracle? ›Oracle has the towering overall revenue so far: its $40 billion in annual revenue is 25% larger than SAP's $32 billion and two times as big as Salesforce's $19 billion.
Does Google use SAP or Oracle? ›Google has an ongoing partnership with SAP which provides SAP-certified infrastructure for all Google systems including advertising and Google Cloud. Google uses SAP S/4HANA Cloud, SAP Ariba and SAP HANA Enterprise Cloud.
How much does SAP pay compared to Oracle? ›For example, “beginning” software engineers at Oracle (i.e., IC-2) pull down roughly $164,944 in compensation, including $37,522 in stock. Compare that to SAP, where those at the T1 level earn an average of $107,500, including $4,375 in stock.
Why SAP is the best ERP? ›Why SAP is the Best ERP Software. SAP is different than other ERP systems available. Designed for SMBs, SAP ERP is useful for startups and large enterprises also as it can simplify business operations across different departments irrespective of the industry sector.
Can SAP run on Oracle Database? ›Organizations can run SAP applications with Oracle databases on the same code base on Unix, Linux, and Windows operating systems.
Can SAP run on Oracle? ›
Oracle works with SAP to certify and support SAP NetWeaver applications on Oracle Cloud Infrastructure, making it easier for organizations to move Oracle-based SAP applications to the cloud.
How is SAP different from ERP? ›ERP refers to a management tool for business processes. It utilises various resources to deal with and manage a company's basic internal processes. The SAP, on the other hand, refers to the products from the SAP AG company. They have created an integrated solution using the SAP-ERP software.
Which is cheaper SAP or Oracle? ›When considered as a percentage of a company's annual revenue (or budget, for public-sector organizations), SAP is the higher cost option. The average SAP customer spends 4% of its annual revenue on its total cost of ownership, while the average Oracle customer spends 1.7%.
Which technology is better than SAP? ›Oracle closes the books faster than SAP**
Since everything is integrated with Oracle Cloud ERP, we can close with a lot less labor-intensive manual reconciliation and use automation to create efficiencies using Oracle's machine-learning-based pattern recognition.
SAP consists of modules that cover every aspect of business management. It provides end to end solutions for logistics, accounting, finances, distribution, human resources, and inventories, it grants everybody in the company the advantage of working on a synchronized and systematic environment.
What is the downside to Oracle ERP? ›Disadvantages of Oracle ERP System
User Participation: The successful implementation is complete when every employee adopts the system, which in turn requires a training learning session. Hence, making it a challenging and time-consuming process.
Traditionally, Oracle Database provided strong security through these capabilities: Core Database Security (users, roles, authentication, etc.) Encryption of Network Communication. Transparent Data Encryption (TDE)
Why is Oracle company the best? ›Work-Life Balance: Oracle understands the importance of work-life balance and provides its employees with the flexibility to manage their personal and professional lives. They offer flexible work arrangements, such as remote work and flexible scheduling, to help employees achieve a healthy work-life balance.
What world top companies use SAP? ›| Company Name | Website | Employee Count |
|---|---|---|
| ExxonMobil | www.exxonmobil.com | 63000 |
| EY | www.ey.com | 312250 |
| Novartis | www.novartis.com | 104323 |
| NuVasive | www.nuvasive.com | 2900 |
Most important advantages of Oracle Databases
Reduces operational costs: “An Oracle-based system, for example, allows you to consolidate multiple databases into a single database.
Where does Oracle rank in the world? ›
In 2020, Oracle was the third-largest software company in the world by revenue and market capitalization.
What ERP system does Amazon use? ›What ERP System Does Amazon Use? Amazon has been using SAP as its ERP system for its business processes. While the detailed SAP modules implemented by Amazon can't be predicted, some of the modules that have been implemented by Amazon include; SAP Basis / NetWeaver Administration.
What ERP does Apple use? ›Apple uses SAP software for their App Store, iTunes, online store, and other online store services. They also use different SAP systems for their finance department and Human resources. SAP has helped Apple to bring them closer to their customers and help them develop relationships with them.
Do companies still use Oracle? ›If you are looking at your existing legacy IT, then yes, indeed Oracle is still relevant. From an Oracle business prospective, Oracle's decision to acquire application companies and now cloud companies has been brilliant.
Which SAP has highest salary? ›1. SAP S/4HANA (High-Performance Analytic Appliance)
What is the highest salary in Oracle? ›| Designation | Average Salary Yearly Yearly Monthly |
|---|---|
| Senior Software Engineer (3 - 13 yrs exp) | ₹ 19,97,926/yr (₹8.9L/yr - ₹40.0L/yr) |
| Principal Consultant (6 - 17 yrs exp) | ₹ 23,33,331/yr (₹12.8L/yr - ₹34.0L/yr) |
| Senior Member of Technical Staff (2 - 13 yrs exp) | ₹ 24,52,097/yr (₹12.0L/yr - ₹51.0L/yr) |
In the case of SAP, the supply of SAP experts is decidedly less from the perspective of an enterprise. This, in turn, increases the demand for trained SAP professionals in the market. Thus, employers are ready to pay the extra to achieve the need for highly trained SAP employees.
Which ERP is better than SAP? ›| Name | Features |
|---|---|
| Microsoft Dynamic | • This ERP software allows you to develop new database-powered apps • Create template Excel and Word files from data for quick reports |
| Oracle business | • Easily enforce organizational policies • An easy way for employees to submit, view, track timecards |
Microsoft Dynamics 365 Business Central.
Why do people choose SAP? ›SAP is so popular among enterprises because businesses can get an all-inclusive set of integrated, cross-functional dealing processes with it. SAP regularly researches market trends and needs of the business units.
How long will SAP support Oracle? ›
Standard Support for Oracle 19c ends by April 2024, what's the next supported release and when | SAP Community.
What is the difference between SAP HANA and Oracle? ›Oracle allows transparent scales for online transaction processing (OLTP) and analytics running together. For high performance analytics HANA uses a column format that has severe architectural limitations for scalability and OLTP performance. (DBAs, developers).
What OS supports SAP or Oracle? ›- Operating Systems. ...
- Oracle Solaris for SAP. ...
- Oracle Linux for SAP.
Google parent Alphabet plans in the coming weeks to stop using Oracle financial software and instead start using software from SAP , CNBC has learned. Alphabet and Google core financial systems will move to SAP in May, Google told employees in an email that CNBC viewed.
What SQL does SAP use? ›SAP Software is a database and operating system independent, so it can be run on any Database. The SAP server uses a special abstraction layer called Database Interface that converts Open SQL Statements to Database-specific Native SQL. SAP software runs on Oracle, DB2, SQL Server, and SAP Sybase.
Is Google using SAP? ›Find a partner for SAP on Google Cloud
Partners can help you move to, build on, and work in the cloud. Both Google Cloud Consulting Services and the many trusted partner services have the SAP and Google Cloud expertise to help you assess, plan, migrate, operate, and optimize your SAP landscapes on Google Cloud.
- Kinetic.
- Infor M3.
- SYSPRO.
- NetSuite.
- Acumatica.
- Microsoft Dynamics 365 Business Central.
- Microsoft Dynamics 365 Supply Chain Management.
- Oracle JD Edwards EnterpriseOne.
There are 2 Types of SAP ERP system Modules: Functional Modules and Technical Modules. All SAP Modules integrate with each other with functionality and provide the best solution for a Business.
Does SAP count as ERP? ›SAP is positioned a Leader in cloud-based operational ERP.
Why is Oracle better than competitors? ›Another differentiator for Oracle is our commitment to openness and interoperability in the cloud. As an example, we have a very strategic relationship with Microsoft. Joint customers can migrate to the cloud, build net new applications and even do things like run Microsoft analytics on top of an Oracle Database.
Which is more expensive SAP or Oracle? ›
However, Oracle is generally considered to be more expensive than SAP. For example, Oracle offers a pay-as-you-go pricing model, whereas SAP does not. Oracle also offers a subscription pricing model, whereas SAP only offers a one-time licensing fee.
How many modules are there in Oracle ERP? ›This graphic shows the 13 ERP modules and how they work together.
Is SAP outdated now? ›Enterprise and software giant SAP has set a 2027 deadline after which its systems will be built to run on just one single database. The year 2025 was originally the S/4HANA deadline.
Is SAP still in demand? ›SAP consultants are in high demand due to the widespread use of SAP software in businesses across the globe.
Why SAP is number one in the world? ›SAP is the largest ERP provider catering to businesses of all sizes. What is not commonly known is that SAP's largest customer base is the small and midsize market. In fact, 80% of SAP's overall customers are SMEs, including the 65,000 who are running their businesses on SAP Business One.
When did Amazon switch to SAP? ›Customers have been running SAP workloads on AWS since 2008. SAP and AWS have partnered for 14+ years to jointly innovate for our customers. Our guiding star has been to bring flexibility and agility of the AWS platform to run SAP workloads.
Why does Coca Cola use SAP? ›Coca-Cola Enterprises Joins SAP in Direct Store Delivery Initiative to Enhance Sales, Logistics, Service and Mobile Applications.
Who pays better SAP or Oracle? ›One thing to note: SAP's highest software-engineering rank, T5, didn't have enough crowdsourced data to compare it to Oracle's IC-6, the top level on levels. fyi. That aside, the data here makes one thing clear: Oracle pays its software engineers significantly more than SAP.
Who are SAP's biggest customers? ›SAP has always been a major player in the business world. It provides 25+ industry-specific solutions used by many top companies including Apple, Walmart, Amazon, ConAgra, and Porsche among others.
Why does Oracle make so much money? ›Oracle primarily (85%) makes money from its cloud services, providing comprehensive and integrated applications and infrastructure services delivered via cloud-based deployment models.
Which one is better SAP or SQL? ›
While MS SQL is based on disk storage, SAP HANA uses in-memory technology. This essentially means that SAP HANA can load data into the server memory and process the data much faster than MS SQL. Hence, HANA is more suitable for applications that need higher processing power.
Which is the second most successful ERP after SAP? ›| Rank | Vendor | 2021 ERP Market Share, % |
|---|---|---|
| 1 | SAP | Subscribe |
| 2 | Intuit Inc. | Subscribe |
| 3 | Oracle | Subscribe |
| 4 | Microsoft | Subscribe |