SAP Vs Oracle

If you have devoted just a few minutes to researching ERP (enterprise resource planning) systems, you already know of SAP and Oracle – the two ERP giants. But the question is how to choose between them.

ERP is a core solution for many organizations. This is because the need for digital transformation is becoming essential for sustainable growth. Also, thriving global businesses and the requirement to manage large volumes of data efficiently are not just trends anymore.

Global ERP Software Market Forecast
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As a result, the global ERP market continues to grow every year. The global ERP software market size was valued at $59.48 billion in 2023. Experts believe it will reach $123.41 billion by 2030, with a CAGR of 11.0% from 2023 to 2030.

But, investing in ERP software is expensive. Because of complex features, customizations, and maintenance and upgrade costs, businesses must research well to find the best ERP that aligns with their needs.

To help B2B businesses make an informed decision, let’s delve into the in-depth comparison of the two – SAP vs Oracle. However, it is ideal first to understand what SAP Oracle ERP is and how it helps organizations improve business functions.

What is ERP?

ERP Module
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As the name suggests, enterprise resource planning (ERP) is an all-inclusive software system that helps simplify and organize every aspect of a business. It can increase productivity by gathering the necessary data from numerous sources on a single platform.

Undoubtedly, it is not easy to find a difference between SAP vs Oracle ERP on a surface level because of almost similar functionalities. Both these systems help businesses:

  • Unify multiple departments, like sales, manufacturing, and supply chains, for simplified financial accounting.
  • Gather all company information in one place for the entire enterprise to make informed business decisions.
  • Help ensure compliance with regulatory requirements and predict and prevent risk.
  • Assists in identifying and reacting to new opportunities with efficient operations and ready-to-access real-time data.

To find the best ERP system, let’s explore each platform individually and understand how they improve business performance.

What is SAP?

Top Companies Using SAP
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SAP Software is a European company established in 1972 by 5 IBM ex-employees, Wellenreuther, Hopp, Hector, Plattner, and Tschira. The idea behind developing SAP software was to help businesses manage their operations and customer relationships.

Over the years, SAP has been a top leader in the enterprise application market. With a customer base of over 150,000, the SAP cloud platform equips sellers and business owners to automate and streamline processes.

In fact, it is one of the preferred enterprise software choices for most Fortune 500 companies. These big brands include Amazon, Walmart, Costco Wholesale, McKesson, Apple, Alphabet, etc.

Now that we know the answer to “What is SAP software?”, it is time to learn – What is Oracle?

What is Oracle?

Founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, Oracle was initially a small database management company. Today, it is a leading cloud computing corporation helping many businesses across industries build their infrastructure.

According to its official website, Oracle has over 430,000 customers in 175 countries. But note that these figures are not specific to the Oracle ERP system. Oracle ERP is a comprehensive system for managing business processes and functions. It helps businesses with real-time reporting, business intelligence, and business decisions.

Oracle Cloud provides advanced Generation 2 public cloud capabilities besides on-premise ERP software.

SAP vs Oracle: Comparison

ParametersSAPOracle
Architecture Ground up approach Integrating several systems
LanguagesRuns on ABAP languageOracle RDBMS uses SQL
Ease of DeploymentLengthy and intricate, lasting for several months or even years.Vary in difficulty, with some users finding it simple and uncomplicated.
AccountingStandard features such as
  • Accounts payable
  • Accounts receivable
  • Fixed asset management
Standard plus advanced risk management solutions, like
  • Asset management retirement
  • Amortization
Human Resources (HR)Offers comprehensive employee self-service, talent management, and workforce analyticsGood reporting capabilities and HR modules for recruitment, performance management, and training
CRM (customer relationship management)Streamlines customer relationships, sales processes, and marketing campaigns, offering better customer satisfactionHelps manage customer relationships, track sales leads, and improve customer service and support
Inventory ControlSAP focuses on inventory management tools to minimize supply shortagesOracle promotes increased productivity
Deployment OptionsPrimarily on-premises and hybrid, with growing cloud offeringsA mix of on-premises, cloud-based (Fusion Cloud ERP), and hybrid options
BudgetingBasic features, allowing management and execution of general planning Includes specific tools like asset lifecycle management, offering advanced budgeting options
SAP vs Oracle

Comparison on a Technical Base

Architecture

SAP is primarily a product from the ground up rather than through integration or acquisition. On the other hand, Oracle offers more flexible functionality to various industry niches. This is because of its focus on acquiring product lines to provide better solutions.

Ease of Deployment

Oracle ERP Cloud’s setup can range in difficulty, with some users finding it simple and uncomplicated.  Users often find SAP lengthy and complex. It makes it harder to deploy this ERP system, taking several months or even years.

Comparison on a Functional Base

Accounting

Both SAP and Oracle ERP systems offer basic accounting functionalities.

However, the best part about Oracle is its reliable financial management and reporting functions. It enables businesses to maintain a single source of financial information that their accounting and FP&A teams can trust and rely on.

Further, it also simplifies governance, complying with GAAP (generally accepted accounting principles) and industry accounting requirements with the help of flexible configurations.

Human Resource

SAP offers more tools than Oracle in its HR module. Users can easily access details about several HR functions in one location. Further, SAP makes it easier to retrieve and update employee information using an exclusive portal.

Undoubtedly, Oracle has good reporting capabilities. However, the visual representations are its standout feature, ensuring swift interactions. So, if you rely on data to make HR decisions, visualizing your company’s data is a valuable tool to track the history and future of the company within minutes.

CRM

Oracle allows you to plan campaigns and budgets on a single platform. On the other hand, SAP offers cross-functional processes to simplify finance, procurement, and marketing processes. In addition, SAP facilitates the necessary CRM features for distributors of every size and industry. However, reporting and analytics data options are much better in Oracle.

Budgeting

SAP’s software provides standard budgeting capabilities. It includes managing and executing general budget planning.

Oracle’s budgeting capabilities are slightly better. It offers a tool called Asset Lifecycle Management. This tool helps businesses to utilize the financial potential of their equipment and other facilities.

Customer Reviews and Reputation

When it comes to opinions, both ERP systems get mixed reviews. However, SAP and Oracle have a sizable market base and boast of strong reputations in the market.

According to reviews from different platforms, managers and C-level executives from manufacturing, services, and finance industries often praise SAP. They highly recommend it for its extensive features and strong functionality, offering a positive ROI.

Oracle ERP Cloud suits organizations looking to support advanced and complex financial and resource management processes.

Reviewers believe Oracle is an excellent option for companies looking to switch from on-premises ERP software to the cloud, especially for businesses already using other Oracle software.

Top SAP and Oracle Alternatives

SAP and Oracle are suitable for businesses focusing on financials. Both solutions hold the top spots even if you consider SAP vs Oracle market share.

According to Gartner, SAP is at the #1 spot with a 22.3% market share. Oracle’s market share is 18.4% in the ERP industry.

However, other ERP software are also available, best suited for several sizes or other businesses. The best alternatives to SAP and Oracle Cloud ERP include Workday, Microsoft Dynamics 365, SAGE, Epicor, Infor, IFS, etc.

Pros of Choosing Oracle Over SAP

Oracle is better at dealing with huge database sizes and high application workloads. Even though working with complex software like ERP is not easy, Oracle makes itself portable and easily attainable on different platforms.

For this, it uses the same code base and documentation, offering better accessibility.

  • Oracle was originally a database company, which is also a strength of its ERP solutions.
  • Being the leader in RDBMS performance on many platforms, it offers better speed.
  • It focuses more on financial data movement within an enterprise company.
  • It allows businesses to purchase different functionalities in one package or separately, providing better flexibility.
  • Suitable for most industries like manufacturers, consulting agencies, healthcare organizations, and financial institutions.

Pros of Choosing SAP over Oracle

SAP offers a much smoother experience with enterprise-level functions such as project management, financial planning, etc. It also ensures that global interactions are easy to maintain and bridges cultural gaps.

  • SAP offers functionality for sales teams to help manage accounts, build invoices, and manage contracts from its ERP interface.
  • S/4HANA, SAP Business One, and SAP Business ByDesign are suitable for small- to mid-size organizations.
  • Often used by manufacturing and distribution companies with an extensive need for financial, accounting, or HR tools.

Which is the Best – Based on the Size of the Company

For companies searching for a scalable build-as-you-grow type of ERP, Oracle is more suitable. Oracle offers many optional plug-ins. Many big and small businesses ranked Oracle higher in the 2022 TrustRadius report. However, companies should also consider the growing cost of each additional add-on with it.

Oracle Cloud ERP is more suitable for mid-market and enterprise corporations. It also offers Oracle NetSuite, a better option for smaller companies.

SAP offers a more comprehensive package from the beginning. Hence, it is ideal for companies with a broader vision that needs scalable solutions.

While SAP S/4HANA is for global enterprises, SAP’s Business One software is popular with mid-market to small businesses. Similarly, larger companies prefer its other variant, Business All-in-One.

Conclusion

Choosing an ERP system that aligns with your long-term business goals is essential because of switching costs. Consider the above SAP vs Oracle Cloud ERP comparison to make your decision.

However, it is vital first to understand your current and future needs. Consider each vendor’s cloud offerings and find the best on-premises and cloud components for your business. Also, note that most ERP systems can help gather data. However, they must offer meaningful reports for strategic decision-making.

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