Although important, implementing new ERP software is time-consuming and expensive for most companies. It’s a process you don’t want to have to do any more often than necessary, which is why it’s important to pick the right software the first time. 

Two of the big names in ERP today are Odoo and SAP. In this article, we’ll outline the key components of each software system to help you determine which one makes more sense for your business.

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Understanding SAP

Let’s start with SAP, which has been around longer than Odoo and, therefore, might be more familiar to business owners and leaders. Initially developed in 1972 as a standard application for business processing, its name stands for “Systems Applications and Products in Data Processing.” 

What types of companies use SAP?

Since its development, SAP has been used by multinational companies, not small businesses. Many Fortune 500 companies rely on SAP to manage all of their business processes across departments and divisions.

However, the release of SAP Business One in 2002 has changed that. SAP Business One is designed for small businesses that need one software to manage their accounting, human resources, purchasing, customer relations, and more. It makes the ERP platform more accessible to smaller companies that don’t need all the functionality and features of SAP.

How much does SAP cost?

Both SAP and SAP Business One cost money for licensing fees. The pricing can vary from one company to another, so it is impossible to give a direct pricing guideline here. It is known to be an expensive ERP software, however.

What are SAP’s features?

SAP Business One is relatively easy to deploy, but it has limited customizations. Use SAP Business One for financial management, sales, customer management, purchasing, inventory control, business intelligence, and analytics. In addition, it has industry-specific functionalities for manufacturing, consumer products, retail, wholesale distribution, and professional services.

How do I access SAP Business One?

You can use SAP Business One from your desktop or mobile device.

How is SAP hosted?

There are a few ways to host SAP Business One. First, you can deploy it in an on-premise environment, keeping your SAP hardware stored on your server. You can also use cloud-based technology for hosting, which they refer to as SAP Business One On-Demand. 

Understanding Odoo

Compared with SAP, Odoo is a relative newcomer to the ERP software scene. It was first founded in 2005 but did not become mainstream until around 2010. As open-source software, Odoo has flexibility that other types of software are unable to match, making it an appealing option for small businesses and startups. 

What types of companies use Odoo?

Odoo can be used by companies of all sizes, from small startups to large corporations. To date, Odoo is the most installed software globally, with over 7 million users worldwide.

There are two versions of Odoo—Odoo Community and Odoo Enterprise. Odoo Community is a more scaled-back version of the software that may be more suitable for smaller businesses that don’t need enterprise software functionality. On the other hand, Odoo Enterprise has significantly more features and integration options for large companies.

How much does Odoo cost?

The Odoo Community version is completely free. You’ll never have to pay a dime as long as you use Odoo Community. As we mentioned, it has fewer features than Odoo Enterprise; however, trying it for free can be an excellent way to determine whether Odoo is right for your business. It can also be helpful for smaller firms and startups that want to scale to Odoo Enterprise in the future without needing to implement new software.

Odoo Enterprise has transparent, flat-rate pricing for each app you add, multiplied by the number of users who need it. You’ll never pay for apps you don’t use. It’s a good idea to work with an official Odoo Partner (like StackBench) to figure out which apps to integrate and guide you through the implementation process. This will cost more money upfront and result in a more streamlined process once everything is installed and your team is trained.

What are Odoo’s features?

A big selling point of Odoo is that it has a lot of room for customization, especially for Odoo Enterprise users. Odoo Community has website building and management features, along with basic features for invoicing, sales, inventory, human resources, marketing, services, and productivity. 

Odoo Enterprise has all the features of Odoo Community with additional customizable features. Use Odoo Studio to create a fully customized experience for your users. You can see a breakdown of the different features of each version here.

How do I access Odoo?

You can access Odoo Community from your desktop. Odoo Enterprise is available on desktop as well as mobile devices that use Android or iOS.

How is Odoo hosted?

With Odoo Community, users need to host the software themselves using either hosted or on-premise servers. It works with cloud hosting platforms, including AWS, Google Cloud, Digital Ocean, and more. Odoo Enterprise can be hosted the same ways, along with Odoo SaaS and Odoo.sh, which is Odoo’s cloud hosting option.

Should You Get Odoo or SAP?

We hope this breakdown of SAP Business One and Odoo helped clarify the differences between the software so you can decide which one is best for you. 

Odoo’s modular format is intuitive and easy to use. It can scale for businesses of all sizes, from startups to large enterprises, thanks to the two versions, Odoo Community and Odoo Enterprise. In addition, its flat-rate pricing for the enterprise model makes Odoo a more economical option for companies.

SAP is designed for large corporations, while SAP Business One was developed for smaller businesses. It has fewer customization options than Odoo and is more expensive. However, it has longevity on its side, which can benefit companies that prefer to use software with a longer history.

If you’re still undecided about which ERP software to get, let’s talk! Schedule a free 30-minute consultation today to speak with one of our ERP experts.

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