SAP stands for Systems, Applications, and Products in the Processing of Data. It’s a German multinational software corporation that provides enterprise resource planning (ERP) software to manage business operations and customer relations.
SAP software helps companies manage their financials, logistics, supply chain, human resources, and other business functions. The SAP ERP system integrates all data and processes of an organization into a unified system. SAP is a multinational software company with its headquarters located in Walldorf, Germany.
The company was established in 1972 and has since grown to offer enterprise software, cloud-engineered systems, and database solutions. This robust platform has made SAP a dominant force in the industry, but it's not without SAP competitors offering compelling alternatives.
SAP is used by businesses to handle client relations and corporate processes. The corporation generated sales of 27.84 billion euros and employed about 110,000 people. Users can use data and AI-driven intelligence to connect departments and operations.
In this article, we will discuss about Top SAP Competitors and Alternatives:
List of Top 10 SAP Competitors & Alternatives
The Best SAP Competitors of 2024 in Detail
1. Oracle Corporation - A Competitor of SAP
Year Founded: 1977
Headquarter: Austin, Texas
Oracle is one of the main competitors of SAP ERP solutions such as SAP S/4 HANA & SAP ECC6. One of the components of Oracle Fusion Applications is Oracle HCM Cloud. Businesses may manage supply chains, projects, human resources, and customer relationships with the use of this cloud-based platform.
Oracle provides various products on a single platform, just like SAP. Moreover, businesses may automate their ERP, SCM, and CRM procedures with Oracle E-Business Suite. Additionally, the business owns NetSuite, a leading SAP substitute for managing essential back-office functions. One of SAP's most thorough rivals is Oracle.
2. Microsoft - A Competitor of SAP
Year founded: 1975
Headquarter: Redmond, Washington
Microsoft is a significant competitor to SAP, particularly in the enterprise software market. Both companies offer a range of business solutions, including ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) software.
Microsoft Dynamics competes against SAP in the ERP and CRM software market. The main competitive advantage for Dynamics is Microsoft’s end-to-end business productivity tools. First, Microsoft Dynamics users can develop database-powered apps and automated data processes with workflows. In addition, they can produce Word and Excel documents for rapid reporting, as well as user-friendly dashboards for data visualisation. These tools lower error rates and ease data entry. The best SAP substitute for ERP and CRM is Microsoft Dynamics.
3. Zoho - A Competitor of SAP
Year founded: 1996
Headquarter: Chennai, Tamil Nadu, India
Zoho Corporation is indeed a competitor to SAP, particularly in the context of providing business software solutions. While SAP is known for its comprehensive enterprise resource planning (ERP) software and a wide range of business applications, Zoho focuses on offering a suite of cloud-based software for small and medium-sized businesses (SMBs).
Zoho offers several enterprise solutions that compete with SAP’s products. Organisations can handle the whole employee lifecycle and HR interactions with Zoho People Plus. To access Zoho WorkDrive, Zoho Office Suite, Zoho Docs, Zoho Social, and other apps, a lot of businesses use Zoho. For startups and small businesses, one of the greatest SAP substitutes is Zoho.
4. IBM - A Competitor of SAP
Year founded: 1911
Headquarter: Armonk, New York
IBM and SAP are both major players in the technology and business solutions industry, and while they are not direct competitors in terms of offering identical products, there are areas where their offerings overlap, and they can be considered indirect competitors.
IBM and SAP provide IT services and solutions. Although both companies have extensive product lines, most businesses rely on IBM to assist mobile development tasks, optimise apps, and simplify cloud integration and API management.The main rival of SAP in the IT services industry is IBM.
5. AWS - A Competitor of SAP
Year founded: 2006
Headquarter: Seattle, Washington
Amazon Web Services (AWS) and SAP are indeed competitors in the cloud computing space, and their offerings can intersect in several ways. AWS and SAP Cloud platforms offer easy deployment and customer-friendly service and support, but AWS outperforms SAP Cloud Platform in terms of cost.
6. Salesforce Service Cloud - A Competitor of SAP
Year founded: 1999
Headquarter: San Francisco, California
Salesforce Service Cloud and SAP are indeed competitors in the realm of customer relationship management (CRM) and related business applications, but their approach, target market, and product offerings differ.
The leading CRM platforms available on the market are SAP and Salesforce. Both systems offer a wealth of features and functionalities that enable customers to derive meaningful insights from their data. The main advantage of using Salesforce’s CRM is that it unites service, sales, marketing, IT, commerce, and analytics in a single platform. In addition, Salesforce combined its CRM Analytics with Tableau and most recently purchased Slack to offer AI-driven insights. The greatest CRM substitute for SAP is Salesforce.
7. MicroStrategy - A Competitor of SAP
Year founded: 1989
Headquarter: Tysons, Virginia
MicroStrategy offers cloud-based services, mobile apps, and business intelligence.Several capabilities are available in its enterprise BI application software to support firms in streamlining procedures and making data-driven decisions.
MicroStrategy provides cloud, BI, analytics, and embedded and hyperintelligence tools. These simple and straightforward solutions are available to users on the web, on Windows, Mac, and mobile devices. Additionally, they can use APIs and gateways to combine MicroStrategy features with Microsoft Office, Power BI, Tableau, and other third-party programmes. One of the greatest business intelligence alternatives to SAP is MicroStrategy.
8. SAS Institute - A Competitor of SAP
Year founded: 1976
Headquarter: Cary, North Carolina
An American multinational corporation called SAS provides an analytics software suite. Its solutions are used by users to access, manage, analyse, and report on data in order to enhance their decision-making.
SAS creates and markets solutions for data management, governance, and quality. These solutions conduct custom or out-of-the-box data quality processes by utilising the SAS Quality Knowledge Base. SAS Viya can also be used by organisations for event stream processing, information governance, and data preparation.
9. TIBCO Software Inc. - A Competitor of SAP
Year founded: 1997
Headquarter: Palo Alto, California
TIBCO is an American business intelligence software company. Intuitively designed data visualisation, reporting, analytics tools, business activity monitoring, and app and hybrid cloud integration are all provided.
TIBCO is in direct competition with SAP in the following areas: SAP BusinessObjects versus Spotfire, SAP Data Services versus TIBCO BusinessWorks, and SAP BMP versus TIBCO Nimbus Cloud. Users can access their corporate data on a single, secure platform by utilising TIBCO Data Virtualization.
10. Google - A Competitor of SAP
Year founded: 1998
Headquarter: Mountain View, California
Both Google and SAP provide strong cloud platforms and customisable sheets to assist organisations in managing their operations. Enterprises can leverage SAP Analytics Cloud or Google Analytics 360 for data analysis, insight extraction, and customer understanding.
For app developers, Google also provides Firebase; nevertheless, some of its functionalities are in direct competition with SAP Extension Suite, a cloud migration tool. Among the main rivals of SAP is Google.
Conclusion
In the competitive landscape of enterprise software, SAP faces robust competition from various companies offering alternative solutions tailored to diverse business needs. Key SAP competitors include Oracle, Microsoft, Salesforce, etc. These companies provide a range of ERP, CRM, and industry-specific solutions, contributing to a dynamic marketplace. Each competitor brings unique strengths, and the choice among them often depends on factors like company size, industry focus, customization requirements, and the overall digital strategy of organizations.
Top 10 SAP Competitors & Alternatives-FAQs
What replaced SAP?
Oracle Corporation, Microsoft, and Zoho Corporation are some of the notable alternatives that have stepped in to compete with SAP.
Is Oracle ERP better than SAP?
Choosing between Oracle ERP and SAP isn't simple. Oracle scales well and focuses on the cloud, while SAP offers industry expertise and ease of use. Consider factors like budget and technical skills to decide.
Does Amazon use SAP?
Yes, Amazon uses SAP, but it's complex. Since 2008, they've mixed in custom solutions, shifted to AWS, and explored new tech. So, while SAP is part of it, Amazon's IT keeps changing.
Which is expensive SAP or Oracle?
SAP costs more, around 4% of annual revenue, while Oracle costs less, about 1.7%.
Why SAP fees are high?
SAP's fees are higher due to complex modules, industry reputation, customization costs, and potential vendor lock-in. Global support adds to expenses.