Is Oracle Better than SAP? (2024)

As you compare the top software systems for Enterprise Resource Planning, you may have narrowed down your choice among top products like Oracle and SAP. But while choosing which ERP software to implement in your business, confidence is the core thing. Are you completely aware of the positives and negatives between Oracle and SAP?

There are many reasons a company may choose to undertake an ERP implementation. One of the crucial steps of implementation success is to stay focused during your ERP software research so that when you start connecting the dots, there should be no doubts throughout the different stages of resource planning about the features you'll require and how they'll be implemented. Let's compare SAP vs. Oracle, the two leading ERP software packages commonly used.

Beginning with SAP, this ERP system was manufactured in Germany and is structured to support and integrate almost every aspect of the business procedure, including accounting, finance, logistics, HR, etc.

SAP as a whole needs a more prolonged and costlier period to execute. The vendor often markets itself to business with a minimum of $1 billion in revenue per year. Its most current flagship product for more significant organizations is S/4HANA ERP.

On the other hand, Oracle RDBMS (relational database management system) is mainly used for running online transactions and data warehousing. Oracle directs the database technology industry and pleasures itself by featuring several software options like management, development, etc. Its most updated flagship product is Oracle cloud ERP. Our report says SAP projects last around 15 months, while Oracle projects take about 14 months. (panorama-consulting.com)

Although both SAP and Oracle offer benefits as true ERP solutions, SAP typically provides a streamlined experience with business-level functions such as easy bridging of diverse cultural gaps and smooth global interactions. The HANA database of SAP ERP enables real-time information, so it assists in lowering the number of dispensable errors that can happen.

SAP S/4HANA is an ERP that provides functionality for sales teams and enables them to build invoices manage accounts and contacts from the ERP interface. SAP has lately added a scaled-down version of their software powered by AI, so you may have to buy things like helpdesk software or marketing automation on the side.

A complete customer experience suite is offered with all SAP S/4HANA products. In financial terms, SAP has lately launched machine learning into its products, which decreases time spent automatically collaborating between other departments to work out things like financial statements and invoices.

Moreover, for minor to medium-sized companies, SAP also provides Business One. It has also expanded its flagship S/4HANA product with SAP SuccessFactors HCM software. Procurement software and Ariba supply chain management software. While many organizations are still running SAP R/3 or ECC, these products will not be abetted by SAP after 2025.

Oracle software is also a trustworthy product that can deal with massive amounts of application workloads and extended database sizes. This is an advantage for ERP, and although working with a complicated piece of software like this is a challenging task, Oracle has made itself transferable and easily accessible on different platforms by applying the same documentation and code base for ultimate attainability. While it hasn’t been set up for long, the flagship offering of Oracle for vast enterprises is Oracle Cloud ERP.

Oracle Financials

A considerable difference between SAP's ERP and Oracle's ERP is that Oracle is centralized on financial data movement within an enterprise company. The offers by the software allow companies to analyze, integrate and manipulate data based on their needs. Unlike SAP, you can buy all of these functionalities in a single package or one at a time, so it really allows the user to get a sense of liberty while accessing their product.

Oracle Database

Oracle is basically a database company. Thus, it is usually a strength of its ERP software. In terms of speed, oracle has depicted that it's the ruler for RDBMS performance on several platforms. Oracle RAC-like technology helps manage databases by offering to level them up depending on what the customers need. Even with the primary product, Oracle offers many abilities and tools to the server.

Other products by Oracle ERP Software

Moreover, to Cloud ERP, Oracle provides Oracle NetSuite for small to medium-sized enterprises. Some of Oracle's other legacy products are; JD Edwards, Oracle E-business, and Siebel – while many of these legacy products are no longer abetted by Oracle. Understanding the Potential and the Best Practices

According to Panorama, more than half (54%) of business leaders cite cloud-based business intelligence (BI) as vital to their current and future initiatives.

Oracle Artificial Intelligence

AI is something that Oracle has lately launched. The AI focuses on the accounts payable, and the objective of this is to reduce the manual processes performed for checking invoices all over the enterprise.

Similar to SAP's machine learning, it accelerates the entire procedure of knowing what your company requires in terms of financial errors.

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. So obviously, the entire mass is not the leader of the market cap for these software companies.

There are different types of ERP systems in the market, but both SAP and Oracle offer similar products that are configurable for different companies and industries.

Oracle proposes what they name as ONE RED STACK, basically meaning it offers straight from Applications such as HCM, ERP, CRM, etc., to downright storage and servers so that customers can purchase everything from them and should not worry about how disparate systems collaborate. But keep in mind they began as a Database software company; thus, their top revenue generator is a database; while Oracle doesn't decompose their new licenses revenue into separate bucked grounded on past experience, we perceive database revenue would be around 60%.

SAP also provides a FULL Technology stack just like Oracle's, but the difference is the point of view. SAP has OEM affiliations with other technology vendors like HP, Open text, IBM, VMware, etc., and proposes them as certified offerings, meaning that their clients can trust to purchase that 3rd party technology offers while using SAP products. As SAP commended as applications, their 80% revenue still comes from apps (similar to Oracle, SAP doesn't crack-up revenue into separate buckets.

In short, Oracle is much bigger than SAP in terms of revenue, but SAP wins out Oracle hands down when it is about apps.

ERP is used for centralizing operations and driving efficiencies by many companies, and Oracle and SAP are both leaders in the ERP space.

Comparing Oracle vs. SAP, the fundamental difference that makes one software better than the other is the system's financial management modules.

Oracle has a more diverse financial suite with better pricing, budgeting, and core accounting tools. Oracle can modify your base prices to equate market currency, segment, exchange rate, and more. It can also handle rebates, profit margins, and discounts with the help of set guidelines.

In terms of Supply chain management, both have similar ERP characteristics for SCM software, but again, they are powerful in different areas. While the applications technically have the same score, you'll want to ensure that the ERP features you choose go in line with the requirements of your business.

A survey of users reported by Ax Dynamics showed that 86% of Oracle users are more than 50% satisfied with its functionality; 80% of Dynamics 365 users are, and only 44% of SAP users are.

When we focus on the percentage of a company's revenue per year, SAP is expensive. The average SAP client spends 4% of its annual revenue on its entire cost of ownership; on the other hand, the average Oracle client spends 1.7%. The reason why SAP is more expensive than Oracle is because of the increasingly diverse customer requests.

Respondents to Panorama's most recent survey stated that they expected the cost of ERP solutions to be less than 2% of the company's annual revenue.

While any ERP has its challenges, particularly in implementation, the application of SAP software is especially complex. Then now, it is added to the desirability of the company's situation and the diversified demands of the clients.

The perpetual license is $3,213 per specific user with an extra maintenance fee per year. The subscription cost for the professional license is $108 per user every month, with no extra annual maintenance fee.

Nucleus Research did a cost study and concluded that Oracle's average three-year total cost of ownership (TCO) is 48% lower than SAP's.

Organizations searching for scalability through standardization and consistency may find, in terms of scalability, SAP is a better ERP . At the same time, those operating from a more spread-out model based on flexibility mat prefer Oracle's suite of products. Oracle competes with SAP, but Oracle is not as good as SAP during integration with other apps. If you want to choose the best ERP for your company, looking at all options can be highly advantageous. Get started and compare SAP with ServiceNow.

Financial planning is more centralized goal of ERP here, and the app works consistently to enhance the application based on financial apps. Although SAP may have some benefits over Oracle, it cannot excel the technological advancements of Oracle.

Thus, it's clear that Oracle is very established in the market with many powerful software products that span all types of industries and functions. You can search for other ERP features or sources to compare SAP to Oracle. But Oracle will always win over the SAP to have a better career.

All-inclusive ERP tools are helpful for businesses to cut through the uncertainty and drive better decision-making through a transparent look at actual operations and finances. Implementing an ERP is an intricate and cost-intensive process, so it's important to understand the features you want in your ERP and choose the vendor who offers all the functionality you need for the best price and service.

And overall, both Oracle ERP and SAP software do this well. Both of these software products provide a massive variety of functions that may or may not match your enterprise's requirements. ERP implementation is a time-consuming process that takes the better part of a year in most cases, so it's important to choose the best ERP for your business the first time to avoid losses and frustration caused by choosing the wrong system or failing to implement it.

To understand completely what each product offers, you should read about the software deployment options, functionality, and even basic things like cost, audit management, and database. After understanding all of these features, a company can decide whether SAP vs. Oracle is the best fit for them. Oracle has a broader financial suit, and as it puts extra efforts where companies usually need it the most, this vendor is the winner.