SAP Business One Vs Microsoft Dynamics NAV - What Your Business Needs to Know

A clear comparison between SAP Business One and Microsoft Dynamics NAV will enable you to take an informed decision on the ERP you should deploy.

last updated Monday, June 9, 2025
#SAP Business One features #microsoft dynamics vs sap business one

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by John Burson

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If you’re mulling the implementation of ERP for small businesses, then SAP Business One and Microsoft Dynamics NAV are among the two industry-leading choices you must consider. The SAP vs Navision comparison is the first step.

Here’s a detailed SAP vs. Navision comparison to help you select the ERP software company best suited to your needs.

Microsoft Dynamics vs Navision

Origins Dynamics and Navision

• SAP Business One evolved from TopManage, an ERP system that debuted in 1996 and was acquired by SAP in 2002.
• Microsoft Dynamics, which arrived in 1983, was known as Navision. It was acquired by Microsoft in 2001 and renamed Microsoft Dynamics NAV.

Choice of database

• Microsoft Dynamics NAV uses SQL Server as the Relational Database Management System.
• SAP Business One depends primarily on HANA, which is quick and can be deployed on-site or in the cloud. This technology helps bring down SAP Business One price. This can be the most significant takeaway for your business from this SAP vs Navision comparison.

Customer profile

• SAP Business One customers include small businesses, startups, and medium-sized businesses. It has around 50,000 customers.
• Microsoft Dynamics NAV targets medium-sized businesses. It has more than 100,000 customers worldwide.

Software type

• SAP Business One is a standalone, cloud, or on-premise solution. It can run on desktops and mobile devices. Because of cloud deployment, its connectivity helps quickly recover the cost of SAP Business One implementation.
• Microsoft Dynamics NAV is a standalone and on-premise software; the desktop is the only platform supported.

Features Microsoft Dynamics and Navision

• Microsoft Dynamics NAV offers 17 features.
• SAP Business One offers 19 features. The additional modules include sales reporting and inventory optimization. Depending on the features you want, there's more choice here. A clear advantage of this SAP vs Navision comparison is that

Support

• A 5-year Standard Support backs each release of MS Dynamics NAV. It can be extended for another five years upon paying an additional fee. The AMC cost is fixed at 16% of the license cost. This flexibility in budgeting support costs gives MS NAV a clear edge in the SAP vs Navision comparison.
• Each release of SAP Business One comes with four years of support. The AMC costs 17% of the licensing amount.

Multi-company support

• With SAP Business One, each company under a multi-company deployment gets its own database and can support around 300 users.
• Microsoft Dynamics NAV enables the use of a single database across multiple companies and supports unlimited users. This is another win in this SAP vs. Navision comparison.

SAP vs Navision comparison offers insight into the ideal ERP solution for your setup.

Frequently Asked Questions

1. Which ERP is better for small and medium-sized businesses (SMBs)?

SMBs often favor Microsoft Dynamics 365 Business Central due to its cloud-native design, scalability, and seamless integration with other Microsoft products like Office 365, Teams, and Power BI. Its subscription-based pricing model offers flexibility and lower upfront costs, making it accessible for growing businesses. ​

While also targeting SMBs, SAP Business One tends to have higher initial costs and may require more extensive customization. It's suitable for businesses seeking a comprehensive on-premises solution with robust features out of the box. 

2. How do the customisation capabilities compare between the two?

Dynamics 365 Business Central offers extensive customization options through Microsoft's Power Platform. It allows users to create custom workflows, automate tasks, and build applications without extensive coding. ​

SAP Business One provides customisation through its Software Development Kit (SDK) and third-party add-ons. However, these customizations can be more complex and require specialized expertise, potentially increasing implementation time and costs. ​

3. Which ERP offers better integration with other business tools?

Dynamics 365 Business Central excels in integration, especially within the Microsoft ecosystem. It seamlessly connects with tools like Outlook, Excel, Teams, and SharePoint, enhancing productivity and collaboration. ​

SAP Business One also supports integrations but may require additional middleware or third-party solutions to achieve the same level of connectivity, potentially leading to increased complexity and costs. ​

4. What are the differences in deployment options and costs?

Dynamics 365 Business Central is primarily cloud-based, offering a subscription pricing model that reduces upfront costs and simplifies updates and maintenance. This model supports scalability as businesses grow. ​Calsoft

SAP Business One offers both on-premises and cloud deployment options. While this provides flexibility, the on-premises model involves higher initial hardware and IT infrastructure investments. Additionally, SAP has announced plans to phase out support for older versions of SAP Business One, which may impact long-term viability.

5. Which ERP is more future-proof and aligned with modern business needs?

Dynamics 365 Business Central is designed with a cloud-first approach, receiving regular updates and new features from Microsoft. Its integration with AI and machine learning tools positions it well for businesses leveraging advanced technologies. ​

SAP Business One, while robust, has a more traditional architecture. The recent announcement regarding the phasing out of support for older versions suggests a shift in SAP's focus, potentially requiring businesses to consider alternative solutions.

 
 
 

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