Microsoft Dynamics 365 vs SAP S/4HANA Public Cloud
Side-by-side comparison of Microsoft Dynamics 365 and SAP S/4HANA Public Cloud — features, pricing, modules, and deployment options.
Microsoft Dynamics 365 vs SAP S/4HANA Public Cloud at a Glance
| Criteria | Microsoft Dynamics 365 | SAP S/4HANA Public Cloud |
|---|---|---|
| Best For | Mid-to-large companies in the Microsoft ecosystem | Mid-market and standardised enterprises wanting fast time-to-value |
| Starting Price | $70/user/mo | $180/user/mo |
| Pricing Model | per-user | per-user |
| Deployment | cloud, hybrid | cloud |
| Company Size | 251-1000, 1001-5000, 5000+ | 251-1000, 1001-5000 |
| Implementation | 6–14 months | 3–6 months |
| Typical Cost | $150K–$1M+ | $150K–$600K |
Module Comparison
| Module | Microsoft Dynamics 365 | SAP S/4HANA Public Cloud |
|---|---|---|
| Finance & Accounting | ★★★ Strong | ★★★ Strong |
| Manufacturing | ★★★ Strong | ★★ Moderate |
| Supply Chain | ★★★ Strong | ★★ Moderate |
| CRM | ★★★ Strong | ★★ Moderate |
| HR & Payroll | ★★★ Strong | ★ Basic |
| Project Management | ★★★ Strong | ★★ Moderate |
| Inventory Management | ★★★ Strong | ★★ Moderate |
| Procurement | ★★★ Strong | ★★★ Strong |
| Warehouse Management | ★★★ Strong | ★ Basic |
| Ecommerce | ★★ Moderate | ★ Basic |
| Business Intelligence | ★★★ Strong | ★★★ Strong |
| Quality Management | ★★ Moderate | ★ Basic |
| Field Service | ★★★ Strong | — N/A |
| Asset Management | ★★★ Strong | ★★ Moderate |
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 S/4HANA Public Cloud
Pros
- +Lowest TCO in the S/4HANA family — no infrastructure or upgrade projects
- +Quarterly automatic updates keep you on the latest features
- +Rapid 3–6 month implementations via Fit-to-Standard
- +Standardised best-practice processes reduce complexity
Cons
- -Limited customisation — no custom ABAP; extensibility via BTP only
- -Not suited for complex manufacturing or engineer-to-order
- -Mandatory quarterly upgrades cannot be delayed
- -Multi-tenant environment limits data residency control
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 S/4HANA Public Cloud
- You need an ERP best suited for mid-market and standardised enterprises wanting fast time-to-value
- Your company has 251-1000 or 1001-5000 employees
- You operate in Professional Services, Wholesale & Distribution, Retail
- You prefer cloud deployment
- Your budget aligns with $180/user/mo starting price
Frequently Asked Questions
Is Microsoft Dynamics 365 better than SAP S/4HANA Public Cloud?
It depends on your business needs. Microsoft Dynamics 365 is best for mid-to-large companies in the microsoft ecosystem, while SAP S/4HANA Public Cloud is best for mid-market and standardised enterprises wanting fast time-to-value. Microsoft Dynamics 365 starts at $70/user/mo and SAP S/4HANA Public Cloud starts at $180/user/mo.
How does Microsoft Dynamics 365 pricing compare to SAP S/4HANA Public Cloud?
Microsoft Dynamics 365 uses a per-user pricing model starting at $70/user/mo, while SAP S/4HANA Public Cloud uses a per-user model starting at $180/user/mo. Microsoft Dynamics 365 typical total cost is $150K–$1M+ vs $150K–$600K for SAP S/4HANA Public Cloud.
Which is better for retail: Microsoft Dynamics 365 or SAP S/4HANA Public Cloud?
Both vendors serve retail companies. Microsoft Dynamics 365 is typically chosen by 251-1000, 1001-5000, 5000+ employee organizations, while SAP S/4HANA Public Cloud targets 251-1000, 1001-5000 employee companies. Consider your company size and specific module needs to decide.
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