Microsoft Dynamics 365 vs SAP Business One
Side-by-side comparison of Microsoft Dynamics 365 and SAP Business One — features, pricing, modules, and deployment options.
Microsoft Dynamics 365 vs SAP Business One at a Glance
| Criteria | Microsoft Dynamics 365 | SAP Business One |
|---|---|---|
| Best For | Mid-to-large companies in the Microsoft ecosystem | Small to midsize businesses wanting SAP reliability |
| Starting Price | $70/user/mo | $95/user/mo |
| Pricing Model | per-user | per-user |
| Deployment | cloud, hybrid | cloud, on-premise |
| Company Size | 251-1000, 1001-5000, 5000+ | 1-50, 51-250, 251-1000 |
| Implementation | 6–14 months | 3–6 months |
| Typical Cost | $150K–$1M+ | $50K–$250K |
Module Comparison
| Module | Microsoft Dynamics 365 | SAP Business One |
|---|---|---|
| Finance & Accounting | ★★★ Strong | ★★★ Strong |
| Manufacturing | ★★★ Strong | ★★ Moderate |
| Supply Chain | ★★★ Strong | ★★ Moderate |
| CRM | ★★★ Strong | ★★ Moderate |
| HR & Payroll | ★★★ Strong | ★ Basic |
| Project Management | ★★★ Strong | ★ Basic |
| Inventory Management | ★★★ Strong | ★★★ Strong |
| Procurement | ★★★ Strong | ★★ Moderate |
| Warehouse Management | ★★★ Strong | ★★ Moderate |
| Ecommerce | ★★ Moderate | ★ Basic |
| Business Intelligence | ★★★ Strong | ★★ Moderate |
| Quality Management | ★★ Moderate | ★ Basic |
| Field Service | ★★★ Strong | — N/A |
| Asset Management | ★★★ Strong | ★ Basic |
Pros & Cons
Microsoft Dynamics 365
Pros
- +Seamless integration with Microsoft 365, Teams, and Power BI
- +Modular — buy only the apps you need (Finance, SCM, Sales, etc.)
- +Strong field service and project operations modules
- +Copilot AI features across all modules
Cons
- -Per-app licensing can get expensive when stacking modules
- -Implementation complexity varies widely by partner
- -Customisation via extensions can become hard to maintain
- -Some modules (Commerce) still maturing
SAP Business One
Pros
- +Affordable entry point into the SAP ecosystem
- +Strong financials and inventory for SMBs
- +Large partner network for localisation
- +Good reporting with Crystal Reports integration
Cons
- -Limited manufacturing depth vs. dedicated MRP systems
- -HR module is very basic — most need a third-party add-on
- -User interface feels dated compared to cloud-native ERPs
- -Scaling beyond 250 users can be challenging
When to Choose Microsoft Dynamics 365
- You need an ERP best suited for mid-to-large companies in the microsoft ecosystem
- Your company has 251-1000 or 1001-5000 or 5000+ employees
- You operate in Manufacturing, Retail, Professional Services
- You prefer cloud / hybrid deployment
- Your budget aligns with $70/user/mo starting price
When to Choose SAP Business One
- You need an ERP best suited for small to midsize businesses wanting sap reliability
- Your company has 1-50 or 51-250 or 251-1000 employees
- You operate in Manufacturing, Wholesale & Distribution, Retail
- You prefer cloud / on-premise deployment
- Your budget aligns with $95/user/mo starting price
Frequently Asked Questions
Is Microsoft Dynamics 365 better than SAP Business One?
It depends on your business needs. Microsoft Dynamics 365 is best for mid-to-large companies in the microsoft ecosystem, while SAP Business One is best for small to midsize businesses wanting sap reliability. Microsoft Dynamics 365 starts at $70/user/mo and SAP Business One starts at $95/user/mo.
How does Microsoft Dynamics 365 pricing compare to SAP Business One?
Microsoft Dynamics 365 uses a per-user pricing model starting at $70/user/mo, while SAP Business One uses a per-user model starting at $95/user/mo. Microsoft Dynamics 365 typical total cost is $150K–$1M+ vs $50K–$250K for SAP Business One.
Which is better for manufacturing: Microsoft Dynamics 365 or SAP Business One?
Both vendors serve manufacturing companies. Microsoft Dynamics 365 is typically chosen by 251-1000, 1001-5000, 5000+ employee organizations, while SAP Business One targets 1-50, 51-250, 251-1000 employee companies. Consider your company size and specific module needs to decide.
Need a personalized recommendation?
Tell us about your business and we'll help you shortlist the best ERP systems for your needs.