SAP vs. Oracle Cloud

ERP, or Enterprise Resource Planning, is a comprehensive software program that can optimize every facet of your company's operations. Enterprise resource planning (ERP) software can boost productivity by compiling the essential data from multiple sources into a single, easily readable location, like that from SAP and Oracle. The software helps with product management, including pricing, inventory, and supply chain management. It also supports the HR department with employee resources, training, and retention.

Two ERP software monoliths, SAP and Oracle, are probably already familiar to you if you've spent even a minute researching ERP system. But given how similar their products appear, how do you decide between these two well-known tech companies? We have outlined the two companies' distinctions and explained why to choose one.

SAP vs. Oracle: At a Glance

ERP software has existed in some form for almost as long as commercial software has been accessible to companies. ERP technology has long been a mainstay of SAP and Oracle's initiatives to integrate financial data for large corporations.

Because the ERP software market seems, at least on the surface, to be fairly homogeneous, it can be challenging to distinguish between SAP and Oracle ERP. Not only do these systems streamline and combine internal business processes, but they also integrate manufacturing, supply chains, and sales departments for financial accounting. Additionally, they serve as a single source of truth by offering centralized databases that the entire organization can consult when making crucial business decisions. Because all of the company's financial data is kept in one location thanks to this centralized database, large corporations can employ business intelligence software more frequently.

Even though SAP and Oracle both assert that they offer solutions for companies of all sizes looking to expand, the cost may be too high, if not unaffordable, for smaller or medium-sized businesses. The software is well worth the investment for businesses that are growing quickly and have many moving components, such as supply chains, procurement, and multiple locations.

Business Comparison

Both Oracle's and SAP's ERP products place a strong emphasis on finances. Common features of accounting and reconciliation-based financial software include the ability to streamline recordkeeping, combine data across departments and locations, and integrate procurement and sales across whole supply chains.

Both platforms offer real-time data management, regulatory compliance settings and forms, and support for multiple currencies and languages. These features also make use of cutting-edge computing powers like artificial intelligence (AI) and machine learning (ML) to speed up the analysis of various financial data and boost revenue.

Accounting

• Oracle ERP systems and SAP ERP systems both provide accounting features like A/P, A/R, and fixed asset management.
• The integration of Oracle enhances the dependability of financial management and reporting while meeting governance, risk management, and compliance (GRC) standards. Oracle takes great pride in its risk management products, which support the automation of certain industry-specific compliance requirements as well as the enforcement of compliance across the entire organization.
• Nonetheless, SAP's risk management solutions can assist your company in recognizing and comprehending risk factors, stopping cash leaks, and enforcing regulations.
• Tools based on standard procedures can be implemented with Oracle. The asset's whole lifecycle, from acquisition to amortizations to disposal, is covered, for instance, by the Asset Management to Retirement module.

Budgeting

• Although Oracle's ERP system is far superior, SAP's software has some comparatively basic budgeting features, such as managing and carrying out general planning.
• Oracle provides a specialized tool called "Asset Lifecycle Management," which lets you manage standard business budgeting requirements and make the most of the financial potential of your equipment and other facilities.

Pricing

• Oracle's offerings surpass SAP's entry-level features in terms of cost as well. You can modify your base prices using Oracle according to a number of factors, including market segment, currency, exchange rate, and more. It can also use predetermined guidelines to manage discounts, rebates, and profit margins.

HR

• Beyond what Oracle provides, SAP offers an abundance of extra tools for HR management. Users can locate essential information about various HR functions under SAP's management in one convenient location. Additionally, a dedicated portal allows employees to view and update their personal data.
• Apart from payroll functions, SAP ERP software offers e-recruiting functionalities that aid in employee retention and decrease attrition.
• Oracle's visual representations facilitate rapid communication, despite the fact that its reporting capabilities aren't as strong as SAP's. This feature might be particularly significant to you if you want to base more HR decisions on data. You can see the past, present, and future of your business by visualizing its data.

CRM

• While SAP provides cross-functional processes related to finance, procurement, and marketing, Oracle allows you to plan campaigns and budgets on a single platform.
• Almost every aspect of your business can benefit from SAP's customer account management tools. You can handle lead generation more skillfully if you grant access to your customers' past. Furthermore, this tool is integrated with marketing, sales, and finance, providing you with a comprehensive view of your customers' past interactions with the company as well as their potential needs going forward. Gaining more insight into your clientele will help you employ more intelligent selling techniques and contextual marketing.
• We give both solutions for sales-order management high marks. SAP offers broad support to distributors of all sizes and in all market sectors. Oracle's advantages are its reporting and data features.

AI and ML

• SAP and Oracle incorporate automation, AI, and machine learning into their respective programs, but they do so in different ways. Introduced in 2008, SAP's HANA computing platform serves as the brains behind the company's entire product line, offering machine learning, automation, and predictive analytics capabilities. In addition to having a platform based on HANA, SAP also provides users with access to deep analytics and data through "CoPilot," an AI-driven digital assistant that eliminates the need for a human brain to comb through outdated reports.
• With tools like supply chain finance, accounts payable, and more powered by embedded AI, Oracle's software makes use of AI and ML. vs. In order to help clients, make the most of the platform; the business also provides an AI digital assistant. Oracle provides analytics and big data tools to help managers search and analyses databases using natural language processing. Similar advantages to SAP's HANA platform are provided by Oracle's Oracle Database.

Cost of SAP vs. Oracle

It is challenging to estimate the precise cost of implementing either solution for your company because neither SAP nor Oracle makes their prices available to the general public. When figuring out how much you'll pay for either platform, there are also a tonne of different pricing packages and plans to take into account. A one-user subscription to SAP's cloud-based model costs between $100 and $150 per month, while a customized package with full implementation and support could cost as much as a five- to six-figure investment, depending on the size and scope of your business.

For example: SAP's Cloud Hosted Professional Plan costs $132 per user per month, according to SEIDOR, a reputable local partner of SAP; the SAP Business One Perpetual Licence costs $3,213 per user.

Furthermore, according to Oracle's Global Price List, which was published in December 2022, each user pays between $150 and $200 per month for the Fusion Cloud Service. That being said, these are only the tip of the iceberg for suppliers who provide a wide range of plans and setups. You'll probably get different mileage.

Customer Feedback and Reputations

When it comes to customer feedback, SAP and Oracle are both regarded as leaders in the ERP market, particularly for larger, enterprise-sized businesses. However, their opinions differ slightly. Taken together, these platforms offer a great deal to any company wishing to take advantage of an ERP system.

The Best Alternatives to SAP and Oracle

Although SAP and Oracle are excellent choices for companies that focus primarily on finance, depending on your company's size or area of expertise, another ERP program might be a better fit.

The best substitutes for SAP and Oracle are Cougar Mountain Denali Summit, Microsoft Dynamics 365, and Katana Manufacturing ERP. Browse our reviews of the best inventory management software if you're specifically looking for inventory management. We've put together a review of the best supply chain management software for companies in need of assistance with their supply chains.

SAP vs. Oracle: Assess your requirements

Both SAP and Oracle have robust products in the competition.

"They both have added just about every application category you can think of ERP, SCM [supply chain management], and HCM [human capital management]," Hinchcliffe stated. "They're even going after all the productivity types of functions; including enterprise, social networking, and so on, and then they're adding emerging technologies to the stack as fast as they can."

The questions surrounding SAP vs. Oracle are complicated, as is the case with many technological matters, so businesses should do their own research on the subject.