What is SAP? (Complete Guide + 2025 Reviews)

SAP, an acronym for “Systems, Applications, and Products in Data Processing”, is a global leader in business software. It is aimed at organizations of all sizes, from SMEs to multinationals, who are looking to optimize their operations. SAP's promise is to provide a central nervous system for the business, by unifying and streamlining all business processes. In 2025, SAP continues to dominate the market for enterprise resource planning (ERP) by integrating cutting-edge technologies such as artificial intelligence and machine learning.

screenshot SAP website

What is SAP for? (Use case)

SAP is used to integrate all of a company's functions into a unified system. This makes it possible to collect, store, and process data from various departments such as finance, human resources, production, and sales. The overall benefit is a 360-degree, real-time view of the business, which significantly improves decision-making, efficiency, and productivity.

For a SMES, for example, SAP Business One can unify order, inventory, and accounting management. A major manufacturing company will use SAP S/4HANA to plan production, manage its complex supply chain, and analyze financial performance in real time. For the e-commerce sector, SAP makes it possible to improve the customer experience by consolidating data across all touchpoints.

Key features of SAP

SAP solutions, including the modern SAP S/4HANA suite, are built around modules designed to cover all business functions. Here are the most important features:

  • Financial Management: This module centralizes accounting, management control, treasury, and financial risk management, providing a clear view of the financial health of the company.
  • Supply Chain Management: It optimizes all logistics flows, from purchasing and inventory management to production planning and distribution.
  • Sales and Distribution Management: This function takes care of the entire sales cycle, from quote creation to invoicing and shipping, improving customer order management.
  • Human Resources Management: Through solutions like SAP SuccessFactors, it covers recruiting, talent management, talent management, payroll, and workforce analytics to align human capital with business strategy.
  • Analytics and Business Intelligence: With the HANA in-memory database, SAP provides predictive analytics tools and real-time dashboards for informed decisions.
  • Customer Relationship Management (CRM) : It integrates customer data to personalize interactions, manage marketing campaigns, and optimize customer service.

screenshot SAP HANA cloud central

Advantages and limitations of SAP

Advantages:

  • Full integration: SAP centralizes all data and processes, eliminating information silos and improving collaboration across departments.
  • Robustness and reliability: It is a proven solution, used by thousands of businesses around the world, recognized for its stability.
  • Adaptability and Scalability: SAP's modular system makes it possible to adapt to the specific needs of each company and to evolve with its growth.
  • Improved decision making: Access to real-time data and powerful analytics tools enable leaders to make faster and better informed decisions.
  • Process automation : Many tasks, such as generating accounting entries from inventory movements, are automated, reducing errors and increasing efficiency.

Boundaries:

  • High cost: The cost of licensing, implementation and maintenance can represent a very significant investment, especially for SMEs.
  • Complexity: Implementing SAP is a complex project that requires time, resources, and specific expertise.
  • Rigidity and resistance to change: The interface can be perceived as unintuitive, and businesses often have to adapt their processes to how the software works, which can lead to internal resistance.

How much does SAP cost? (Prices 2025)

SAP prices vary considerably depending on the solution chosen (for SMEs or large companies), the mode of deployment (Cloud or on-premise) and the modules required. Often, the prices for the most complete solutions such as S/4HANA are only communicated on quotation, after analyzing the specific needs of the company.

However, for SMEs, SAP offers more standardized offerings with SAP Business One:

  • Starter license (Purchase): Approximately €1,140 per user, designed for start-ups and limited to a maximum of 5 users.
  • Limited License (Purchase): Around €1,400 per user, for access to specific functionalities (e.g. finance or logistics).
  • Professional License (Purchase): Approximately €2,700 per user for full access to all SAP Business One features.
  • Professional Cloud Subscription: The cost is around €91 per user per month for full access in cloud mode.
  • Limited Cloud Subscription: The price is around €47 per user per month for restricted access.

For more advanced solutions like SAP S/4HANA Cloud, pricing is often based on a full user equivalents (FUE) model, with costs that can start around $180 per user per month for basic features. These rates are indicative and depend heavily on the volume and modules chosen.

SAP Business One

Our opinion on SAP (Test & Recommendations)

Our analysis of SAP confirms its position as the undisputed leader in ERP. The power and functional depth of its solutions, especially S/4HANA, are unparalleled. For a large company with complex processes and international operations, SAP is often the most logical choice to ensure integrated and efficient management.

SAP's greatest asset is its ability to provide a single source of truth for the entire organization, which is a major strategic advantage. However, this power comes at a cost, not only financial but also in terms of implementation complexity. Businesses need to be ready to invest heavily in training and change management.

SAP is best suited for medium and large businesses that need a solution that is robust, scalable, and able to handle high complexity. For SMEs, SAP Business One is a great gateway, offering a simplified version of the power of SAP.

Final grade: 4.5/5

Alternatives to SAP

  • Oracle ERP Cloud: A direct competitor to SAP, particularly powerful in financial management and suitable for large companies.
  • Microsoft Dynamics 365: A flexible and well-integrated alternative to the Microsoft ecosystem, often perceived as easier to use than SAP.
  • NetSuite : A cloud-native ERP solution, highly appreciated by medium-sized and fast-growing businesses for its flexibility.

Integrations available with SAP

One of the strengths of SAP is its open architecture that makes it easy to integrate with a multitude of third-party systems. SAP Integration Suite, for example, makes it possible to quickly connect SAP systems with other cloud or on-premises applications. Integrations are possible with CRM like Salesforce, e-commerce platforms like Shopify, or even tools from the Microsoft ecosystem. Platforms like MuleSoft or native API connectors ensure smooth communication between SAP and the rest of the company's application landscape.

How do I get started with SAP? (Quick guide)

  1. Define your needs: Identify exactly which processes you want to improve and what goals you want to achieve. This step is critical to choosing the right SAP solution and the right modules.
  2. Choosing an integration partner: Implementing SAP requires expertise. Work with an SAP certified partner who understands your industry.
  3. Plan data migration: Prepare for the migration of your existing data to the new system. Data quality is essential for the success of the project.
  4. Train your teams: Anticipate resistance to change by implementing a solid training plan to familiarize your employees with the new processes and the interface.
  5. Deploy and optimize: Launch the solution gradually if possible, then work continuously with your partner to optimize the use of the system.

To support you in integrating SAP into your project, do not hesitate to contact TurnK experts for a personalized consultation: https://www.turnk.co/contact.

FAQ

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What is SAP in IT?

In IT, SAP is an enterprise resource planning (ERP) that allows companies to manage all of their resources and processes (finance, logistics, HR, etc.) within a single and centralized platform.

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What is the role of SAP in a business?

SAP's role is to act as the company's central nervous system. It connects departments, automates tasks, provides real-time data, and helps leaders make strategic decisions to improve efficiency and drive growth.

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Why do businesses use SAP?

Businesses use SAP to standardize and streamline operations, gain a unified view of their business, and improve productivity and competitiveness. Its robustness and scalability make it a preferred choice for managing complex processes on a large scale.

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What is the price of an SAP license?

The price varies enormously. For SMEs, an SAP Business One license can cost between €1,140 and €2,700 to purchase, or from €38 per month when subscribed. For large companies, solutions like S/4HANA are priced on a quotation basis and represent a much larger investment.

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Who are SAP's main competitors?

SAP's main competitors in the ERP market are Oracle, with its Oracle Fusion Cloud ERP solution, and Microsoft, with its Dynamics 365 suite. Other players like NetSuite, Infor, and Workday are also important alternatives depending on the size and needs of the business.

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