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SAP is an enterprise resource planning (ERP) software that offers a variety of product modules and pricing options, typically on a subscription basis. Financial professionals use SAP to manage business processes, including accounting, procurement, and supply chain management. 

This guide covers everything you need to know about SAP pricing, plans, and costs to make an informed purchase decision with confidence. 

​​How Much Does SAP Cost?

SAP does not share pricing information publicly. The software’s pricing can range significantly depending on the type of product, customer needs, upgrades, deployment model (on-premise vs. cloud ERP), and scale of the implementation.

Additional factors, such as integrations, package bundles, user license duration, and number of users may also have an impact on your overall cost. As such, potential customers are encouraged to contact SAP directly for all pricing inquiries.

SAP Plans & Pricing Tiers

SAP offers different types of pricing plans for their various products. Most follow a subscription-based model, however, there is also the option for perpetual licenses and usage-based pricing. 

SAP Pricing vs. Competitors

SAP is generally considered expensive compared to other ERP software solutions due to its customized pricing structure. However, despite the potential higher costs, each SAP plan does come with a wide range of functionalities and features that can be tailored to your specific business needs.

SAP also provides strong security safeguards across all plans and numerous integrations, but some may be exclusive to less cost-effective options.

Comparison Chart: SAP vs. Alternatives

Wondering how SAP pricing compares to other ERP software? Here’s a comparison chart that breaks down the costs of other ERP software side-by-side:

Alternatives to SAP

SAP is a valuable ERP software, especially for large-scale businesses, but there are plenty of other options out there. Depending on your use case, budget, team size, and other factors, you might consider shopping around for a solution that's better suited to your needs. 

If you’re looking for alternative ERP software options to SAP, here are a few worth checking out:

  • Oracle ERP Cloud: Known for its scalability and integration with other Oracle products.
  • Microsoft Dynamics 365: Offers seamless integration with Microsoft Office and a user-friendly interface.
  • NetSuite: Provides strong cloud-based solutions with financial management capabilities.
  • Infor CloudSuite: Specializes in industry-specific solutions with deep customization options.
  • Odoo: An open-source platform that offers flexibility and a wide range of applications.
  • Epicor ERP: Focuses on manufacturing and distribution industries with robust supply chain management features.

How to Choose the Right SAP Plan

When deciding which SAP product and plan to go with, you’ll want to consider the added value and potential drawbacks that come with each choice. 

Scrolling through long lists of features can quickly lead to confusion and uncertainty, so here are a few factors to keep in mind as you evaluate and assess your options:

SAP Scalability and Team Size

Evaluating SAP's scalability in relation to your team’s size and growth is vital. 

For small businesses and startups, the SAP Business One product is ideal, as it offers advanced financial management, reporting and analytics, and inventory management features for an affordable price. 

But if you run a medium-sized business and you’re experiencing growth, you may benefit more from SAP Business ByDesign, which supports mobile access and project management. 

However, large enterprises with complex needs should consider SAP S/4HANA Cloud for its advanced capabilities in manufacturing, supply chain, and asset management. Determining these impacts can help you choose a plan that aligns with your current size and future expansion goals.

SAP plans screenshot
Choose an SAP plan that fits your team’s size and growth stage.

Industry-Specific SAP Features

Next, you should evaluate if SAP meets your specific industry needs, as it offers features tailored to various sectors. 

For example, if you work in manufacturing, SAP provides IoT integration and real-time insights, particularly within S/4HANA. On the other hand, those in retail businesses can benefit most from the customer relationship management (CRM) automation and business intelligence capabilities in SAP Business One. 

These features are often tied to specific plans, so aligning them with your industry requirements is essential.

SAP features screenshot
SAP offers tailored features to meet specific industry needs.

SAP Integration Capabilities

It's important for your chosen ERP software to connect with your existing tech stack to ensure seamless operations. 

SAP offers native integrations with various enterprise applications and provides an API for building custom integrations. While SAP does not directly list compatibility with third-party tools like Zapier, its API supports extensive customization, enabling you to tailor connections to your needs. 

This flexibility allows your team to integrate SAP with other tools essential to your business processes, enhancing overall efficiency and decision-making.

SAP integrations screenshot
SAP supports custom and native integrations for smooth workflows.

SAP Security Safeguards

Lastly, you need to consider the safety and security features with different SAP products to protect your data and operations. 

SAP includes security measures like real-time data encryption, access controls, and compliance with industry standards across all its products. While basic security is consistent, products tailored to larger enterprises, such as S/4HANA, may offer enhanced protection and monitoring capabilities.

SAP security add-ons screenshot
SAP includes encryption and access controls to protect your data.

SAP Pricing FAQs

Here are answers to a few common questions about SAP pricing:

What additional costs should I anticipate with SAP?

When using SAP, you should anticipate additional costs such as ERP implementation fees, training expenses, and potential add-on customization costs. Maintenance and support services may also incur extra charges, depending on the plan you select. These costs can vary based on the size of your organization and the specific requirements you have.

Are there any discounts or promotions available for SAP?

SAP ERP occasionally offers discounts and promotions for new customers or specific industries. These may include reduced rates for annual subscriptions or special pricing for educational institutions. To access these discounts, you should check SAP's official website or contact their sales team for the latest offers.

How often does SAP change its pricing structure?

SAP does not disclose specific details about how often it changes its pricing structure. However, pricing adjustments may occur periodically based on market conditions and product enhancements. It is recommended to consult SAP's website or contact their representatives for the most current pricing information.

Can I get a custom quote for SAP services?

Yes, SAP ERP system offers custom quotes for its services, especially for larger enterprises with unique needs. You can contact SAP's sales team to discuss your requirements and receive a tailored pricing proposal that aligns with your business objectives.

What factors influence the cost of SAP plans?

The cost of SAP plans is influenced by factors such as the number of users, the level of customization required, implementation costs, and the specific features and integrations you need. Additionally, the industry you operate in and the size of your organization can impact the overall pricing.

Is there a minimum contract length for SAP subscriptions?

SAP typically offers its services on a yearly or monthly subscription basis, which may involve a minimum contract length. The exact terms and conditions, including contract duration, can vary based on the plan and the agreement you reach with SAP. It is advisable to review the contract details with SAP's sales team.

Is SAP Good Value?

In my opinion, SAP offers substantial value, particularly for large enterprises with complex needs. Its extensive features, including advanced analytics, IoT integration, and industry-specific solutions, cater well to sectors like manufacturing, retail, and professional services. 

The pricing, while on the higher side, reflects the depth of functionality and the strong security safeguards provided. Additionally, SAP's integration capabilities and custom API support enhance its adaptability within diverse tech stacks. However, the onboarding process might be challenging for smaller teams without dedicated IT resources. 

For businesses that require a full-fledged ERP solution with scalable options and advanced support, SAP stands out as a worthwhile investment. Its ability to handle intricate business processes and provide real-time insights is unmatched for large-scale operations.

Verdict: SAP delivers excellent value for businesses seeking a powerful and flexible ERP solution, especially in complex and data-driven environments.

Want to learn more about SAP? Check out their site for additional information.

Price:

From $3,200/user

Trial:

90-day free trial + free demo available

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Kianna Walpole
By Kianna Walpole

Kianna Walpole is the Editor of The CFO Club. Her specializations include financial management, risk assessment, and digital software.