Top SAP S/4HANA alternatives to add to your ERP shortlist
SAP S/4HANA alternatives from Microsoft, Oracle and QAD have much of the capability and scalability you need and are likely more flexible than S/4HANA. Here's how they compare.
SAP S/4HANA and its competitors are likely on any CIO's ERP shortlist.
A company choosing ERP software for the first time or considering switching to a new vendor should evaluate all the top options in the marketplace, including SAP S/4HANA, Oracle Fusion Cloud Applications and Microsoft Dynamics 365, among others. IT leaders should make sure their company's business strategy aligns with its chosen software and that the software buying team has created clear goals for how the new system will help the organization. As AI continues to dominate headlines, IT leaders should also consider a vendor's current AI functionality and its roadmap for the future.
Here are some of the top S/4HANA alternatives as well as a few options for more specialized needs and SMBs.
The following ERP vendors have been highly ranked by organizations such as Gartner and G2. The writer also referred to vendor websites and used their personal experience when evaluating software vendors for this list.
The vendors are listed in alphabetical order.
Microsoft Dynamics 365
Microsoft Dynamics 365 (D365) consists of two sub-products: Finance and Operations and Business Central. Most organizations that are considering S/4HANA would be also considering D365's Finance and Operations (F&O) component, as Business Central is marketed as a SaaS competitor to NetSuite in the SMB market.
D365 is a more flexible ERP system than S/4HANA. D365 is built on an open architecture, so many products can integrate with the system. D365's open architecture also means that many software developers possess the skills to work with the software. In contrast, working on S/4HANA requires a specialized skill set that fewer developers may possess.
In addition, D365 can be easier to implement. The implementation costs are often less expensive than S/4HANA's because D365 is more flexible.
Overall, Microsoft D365 has better functionality and ability to integrate than S/4HANA. However, if an organization is working to standardize operations, scale production or create consistency across the company, D365 will not provide as much standardization as S/4HANA.
Microsoft Dynamics 365 can be a very promising alternative to SAP S/4HANA, especially for a midsize organization.
Oracle Fusion Cloud Applications
One of the systems that IT leaders most commonly evaluate side-by-side with SAP S/4HANA is Oracle Fusion Cloud Applications, which is the name for the suite of products that includes Oracle Cloud ERP and Human Capital Management, among others. Oracle Fusion Cloud Applications is a scalable, diverse suite that can manage a large range of business functions.
Two of the most important differences between Oracle Fusion Cloud Applications and SAP S/4HANA are flexibility and analytics for performance management and business. Like D365, Oracle Fusion Cloud Applications is viewed as more flexible than S/4HANA, as S/4HANA is more difficult to configure and extend.
In addition, Oracle Fusion Cloud Applications has more robust reporting and business intelligence capabilities. Oracle has strategically acquired products that are the gold standard in reporting, including Oracle Hyperion, which is now part of the Oracle Enterprise Performance Management suite.
S/4HANA does offer its own Embedded Analytics capabilities and provides an integration with Oracle Hyperion, allowing it to close the gap with Oracle. However, if an organization requires strong quantitative capabilities, Oracle is a better fit than SAP.
The products are on an even playing field when it comes to other considerations, such as overall functionality, ecosystem, quality of system integrators and resources to compete in the market.
Overall, Oracle Fusion Cloud Applications is a viable alternative to SAP S/4HANA.
Oracle NetSuite
The other Oracle product worth contemplating as an S/4HANA alternative is Oracle NetSuite. Small to midsize organizations often gravitate to S/4HANA because of SAP's brand reputation and because they aspire to become large companies and believe that S/4HANA will grow with them.
However, an SMB might struggle to adopt a complex system like S/4HANA, so NetSuite can be a suitable alternative.
Like S/4HANA, NetSuite is known for its relative standardization of business processes and workflows, which is accompanied by a certain lack of flexibility. However, that regimentation can be a positive if an organization is trying to grow by standardizing operations.
QAD Adaptive ERP
QAD Adaptive ERP doesn't possess the same brand recognition as some other S/4HANA alternatives but has an impressive tenure and is a good alternative to SAP.
QAD Adaptive ERP offers extensive capabilities in general but is a particularly good match for manufacturing companies. The company's acquisition of workforce management software Redzone in 2023 strengthened QAD's offerings.
QAD Adaptive ERP is scalable, so it can accommodate growth, and it enables users to carry out standardization of business processes. The company offers a very large, established vendor network and has been developing products in the cloud longer than SAP, so QAD has had more time to build key functionality while investing in R&D for its ERP.
QAD employs low-code development, so users don't need to change the ERP's program code when making minor updates. The low-code approach can be particularly beneficial for organizations that are looking for maximum flexibility.
Industry-specific and niche ERP alternatives to S/4HANA
Potential S/4HANA customers might also want to consider industry-specific offerings. These niche players provide scalable, competitive ERP that can compete with S/4HANA or provide similar capabilities.
Among these specialized vendors are Epicor, which specializes in manufacturing across multiple industries; Acumatica, which offers cloud-based ERP for SMBs with products specific to manufacturing and distribution management; and Deacom, which targets batch and process manufacturing.
Companies in the construction industry or organizations that require field service capabilities and mobile workforce management might consider an ERP system from IFS, and Infor might be a good fit for companies that have project-based manufacturing needs.
Companies that are narrowly focused and lack diversified or complex needs may find it worthwhile to evaluate second- and third-tier ERP vendors and their products. The products mentioned above are complete ERP systems that focus on one trade, but targeted products mostly concentrate on one major business function. For example, Workday is best known for its human capital management and finance features, which are typical ERP functions, and Salesforce is the market-leading customer relationship management software.
An organization that needs software for one area of the enterprise might find that a targeted product is a better fit than S/4HANA.
Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.
