Blog

AI advancements have pushed ERP systems to a critical inflection point in 2025. While generative AI remains in the experimental phase, its impact on application interaction models is still evolving. To stay competitive, buyers will explore AI-centric ERP solutions; however, finding mature, AI-driven systems may prove challenging.

Another key factor that could significantly impact ERP rankings in the coming years: is whether cloud nativeness will continue to drive procurement cycles. While migrating legacy systems to the cloud has been a major focus recently, this trend may lose relevance once AI agents reach maturity. At that point, systems with legacy data models could become just as user-friendly as their cloud-native counterparts.

Despite ongoing changes, several established factors remain relevant and were considered in our evaluation this year. These include whether a system is designed to support diverse business models or emphasizes suite-centric capabilities with pre-integrated, industry-specific solutions.

For instance, a large enterprise engaged in frequent M&A may prioritize a robust global financial core over extensive operational features or specialized integrations for individual business units. Horizontal solutions typically emphasize global and generic ERP capabilities, while industry-specific functionality is often delivered through third-party solutions. Conversely, what suits an enterprise may not align with a startup’s needs.

Broader industry trends are equally relevant, such as solution consolidations or vendor acquisitions, which often reshape a system’s architecture and scope. Additionally, consider adjacencies like community strength and market momentum. Each ERP system has its unique strengths, and identifying the right fit requires careful analysis of specific needs and efficiency goals. Join us as we explore the top ERP systems.

10. Odoo

Odoo is a solid choice for smaller companies transitioning from QuickBooks or Xero, consolidating operations previously managed through spreadsheets, add-ons, and disconnected applications. It provides essential transactional processing across ERP, CRM, and HCM categories, all within a unified data model and app suite.

Ideal for budget-conscious businesses, particularly those with in-house developers, Odoo’s modular design enables flexible app purchasing for startups unable to commit for longer term fixed costs. However, its data model lacks tight integration, which may concern companies requiring strict financial control. This limitation can be especially challenging for less experienced firms struggling with internal processes and data management.

Another drawback is Odoo’s limited support for advanced ERP processes and transactions, typically found in more mature systems like Acumatica or NetSuite. How does this impact growing businesses looking for scalability without excessive customization costs? While Odoo offers a compelling entry point for startups and smaller enterprises, does its multi-country management capability outweigh its constraints in advanced ERP functionalities? Compared to competitors like Zoho and ERPNext, is Odoo’s connected data model enough to justify its ranking? To see how Odoo stacks up against the top ERP solutions of 2025 and find the best fit for your business, download the full Top ERP Systems in 2025 Report now.

9. Acumatica

Acumatica is an excellent choice for companies transitioning from smaller ERP or MRP systems. However, businesses without experienced CFOs, operations executives, or controllers skilled in process and data translation for ERP systems may face challenges. Founder-led companies, in particular, might find implementation demanding due to the need for expertise in translating manual processes. Adapting to Acumatica’s structured data model—with its intricate business rules for enhanced financial control—can be a hurdle for those unfamiliar with such systems.

Acumatica’s versatility makes it a strong choice for businesses with diverse operations. But how does it compare to more mature ERP systems in terms of advanced features like dimensional inventory and global localization? While its cloud-native design and marketplace extensions offer flexibility, can they fully bridge the gaps in deeper operational capabilities? With competition from AI-first systems and dominant players like NetSuite and Sage Intacct, will Acumatica’s recent Professional Services edition be enough to gain market share? Download the full Top ERP Systems in 2025 Report now to see where Acumatica stands among the top ERP solutions.

8. IFS

Like other upper mid-market ERP solutions such as Infor LN, QAD, and Sage X3, IFS offers extensive functionality, particularly suited for companies with asset-intensive and field service operations. Uniquely positioned in the market, IFS appeals to enterprises seeking mature, industry-specific capabilities—reducing the need for extensive customization compared to vanilla ERP systems like SAP or Oracle. It serves as a strong alternative in the upper mid-market space, offering both best-of-breed asset management and field service capabilities, as well as a comprehensive ERP solution tailored for asset-centric industries, including telecom, energy, construction, MRO, airlines, and IT field services.

IFS’s complex data model and advanced asset scheduling make it a strong fit for upper-mid-market companies, but does its need for experienced internal teams and external advisors pose a challenge for growing enterprises? With its cloud-native architecture and global multi-entity capabilities, is it the best choice for businesses nearing the $1 billion revenue mark? As IFS expands in North America and invests in AI-driven acquisitions, will its unclear generative AI roadmap impact its competitive edge against other top ERP solutions? Download the full Top ERP Systems in 2025 Report now to see how IFS compares in this year’s rankings.

7. Epicor Kinetic

Epicor Kinetic is the company’s flagship solution. It excels in supporting manufacturing companies with structured processes. Its unique data model and BOM structure are key. It also has strong planning for dimensional inventory. This makes it ideal for industries like metal, fasteners, and fabrication. It works well for aerospace, automotive, and medical device manufacturers. Epicor Kinetic supports complex planning across various business models. These include manufacturing, distribution, and construction. Its advanced features manage WBS-centric processes. This allows efficient management of large programs with centralized cost tracking.

Epicor Kinetic is designed for companies beyond basic transactional processing. It offers a sophisticated data model. This model surpasses entry-level ERP systems like Acumatica and NetSuite. It targets businesses needing advanced manufacturing capabilities like MRP, allocation, and scheduling. Successful implementation requires deep expertise in process and data coding. It’s less suitable for founder-led companies without experienced executives. The rigid revision model can be challenging. Companies with poor SKU and BOM structures may face issues. Strong internal capabilities and advisory support are crucial.

Epicor Kinetic has evolved with modern cloud capabilities and a familiar Microsoft Dynamics-style interface, but do its financial management tools still lag behind competitors? With recent acquisitions enhancing field service, S&OP, and PIM, has Epicor truly differentiated itself, or does its suite-centric approach blend in with other ERP vendors? Its generative AI announcements are among the most exciting in the space, but will it outpace competitors in delivering AI-driven innovations? Download the full Top ERP Systems in 2025 Report now to see where Epicor Kinetic stands in this year’s rankings.

6. Infor CloudSuite LN/M3

Infor LN and M3 are Infor’s flagship solutions. They cater to distinct micro-verticals across industries. Both are built on the Infor OS platform. They share similar suite capabilities. These solutions are well-established in the upper mid-market. They target companies with $250 million to $750 million in revenue. They are for businesses outgrowing entry-level ERPs like Acumatica, Infor CSI, or NetSuite. Infor LN and M3 offer mature capabilities for complex manufacturing and distribution. They provide a suite experience similar to SAP and Oracle. Key features include PLM, WMS, WFM, BI, and a supply chain collaboration platform.

Infor LN is designed for discrete manufacturing sectors, including automotive, aerospace, and high-tech industries. In contrast, Infor M3 specializes in process and apparel manufacturing, serving industries like fashion, food & beverage, and chemicals. Both solutions excel in supporting advanced global operations, particularly for multinational companies seeking cost synergies across regions. Their native capabilities effectively address global trade and compliance requirements, making them a strong choice for international business operations.

Infor LN and M3 serve enterprise companies well in a two-tier ERP strategy. But does their limited industry focus restrict growth opportunities for businesses pursuing diversification or M&A? With a complex data model and BOM structure requiring significant expertise, are the operational efficiencies worth the investment? As Infor shifts toward a platform-driven approach rather than major functional advancements, can it stay competitive in an evolving ERP landscape? Download the full Top ERP Systems in 2025 Report now to see where Infor LN and M3 rank among the top ERP solutions.

5. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central, designed for SMBs, is a natural choice for companies transitioning from smaller ERP, MRP, and accounting systems such as QuickBooks, Microsoft GP, Odoo, Katana, or Fulcrum. Competing with NetSuite, Sage Intacct, and Acumatica, Business Central offers a robust ecosystem with numerous industry-specific add-ons. However, successfully leveraging this ecosystem requires expertise in evaluating unproven code from VARs and ISVs. A solid approach of system architecture is essential to prevent conflicts between plugins and ensure unpainful implementation.

Business Central is particularly well-suited for companies with diversified global operations looking to consolidate all entities into a single database. This is useful for streamlined reconciliation and tracking. While add-ons can extend its functionality for complex industrial operations, its core design aligns best with industries such as non-profits, the public sector, FMCG, and F&B distribution. It is also a strong fit for light assembly manufacturing, telecommunications, media, technology, energy, and utilities.

Business Central’s strong consulting ecosystem and global adoption make it a popular choice, but is it the right fit for companies needing more advanced operational capabilities beyond financial reporting? As Microsoft leads AI-driven innovation, how will Business Central’s alignment with this strategy shape its future compared to other ERP solutions? With many vendors still refining their AI approaches, will Business Central’s stability give it a competitive edge? Download the full Top ERP Systems in 2025 Report now to see where Microsoft Dynamics 365 Business Central ranks this year.

4. Oracle ERP Cloud

Oracle ERP Cloud remains a top choice for large enterprises across diverse industries, including media, telecommunications, construction, energy, oil and gas, and healthcare (following the acquisition of Cerner). It is particularly well-suited for organizations with strong internal IT expertise and a need to integrate various proprietary and third-party software systems, such as patient claims management or utility billing solutions.

Oracle ERP Cloud is an ideal solution for global companies using it as their corporate financial ledger while maintaining other systems at the subsidiary level. Its robust financial capabilities support organizations requiring ledger-level security and hierarchical financial reporting. They might require this whether by line of business, function, or fund. Additionally, it offers seamless integration with a powerful HCM suite and a natively embedded EPM solution.

Oracle ERP Cloud is a strong choice for financial services and insurance, but does its limited success in product-centric industries make it less viable for manufacturing and supply chain-heavy businesses? With many enterprises using it primarily as a corporate ledger, does it provide enough operational depth at the subsidiary level? As competitors like Microsoft and SAP push AI-first strategies, can Oracle ERP Cloud maintain its leadership without a clear roadmap for innovation? Download the full Top ERP Systems in 2025 Report now to see how Oracle ERP Cloud ranks this year.

3. Microsoft Dynamics 365 Apps

Microsoft Dynamics 365, now referred to by various names for different industries—such as Supply Chain Management or Project Operations—has become one of the most in-demand ERP solutions for upper mid-market and large enterprises. While Microsoft doesn’t disclose specific revenue figures for its Dynamics portfolio, estimates suggest that the business unit generates several billion dollars in revenue, significantly smaller than SAP but notably larger than many smaller ERP vendors.

Microsoft Dynamics 365 is particularly well-suited for large global organizations, especially in regions where niche ERP solutions are less prevalent, such as Eastern Europe, South America, or Australia. These regions present unique localization challenges that require tailored solutions to meet specific country- and province-level compliance needs. In many cases, organizations deploy Microsoft Dynamics 365 primarily for accounting and financial reporting, while relying on specialized operational systems for subsidiary-level functions.

Microsoft Dynamics 365’s vast consulting ecosystem and strong ISV marketplace give it a unique edge. But does the complexity of navigating these add-ons lead to higher implementation risks? With unqualified ISVs and VARs contributing to a higher failure rate, how can businesses ensure a successful deployment? As Microsoft prioritizes AI-driven innovation, will Dynamics 365 regain momentum despite facing stronger competition this year? Download the full Top ERP Systems in 2025 Report now to see where Microsoft Dynamics 365 ranks in this year’s analysis.

2. SAP S/4 HANA

SAP S/4HANA continues to be the top choice for large enterprises. The large enterprises with global operations and extensive localization needs across multiple continents, with Oracle being its primary competitor. While alternatives like Unit4, IFS, or Deltek may handle the demands of larger enterprises, they often fall short in delivering the robust global compliance and transactional capabilities that SAP S/4HANA excels at. Additionally, SAP S/4HANA stands out for its superior transactional workload handling capabilities, as well as outstanding traceability for large, complex organizations.

SAP S/4HANA is also an ideal choice for companies seeking a best-of-breed architecture tailored to specific functional needs. This architecture allows for operational cores on isolated sub-ledgers, which is particularly crucial for large distribution and 3PL companies managing complex WMS networks. Companies with intricate HCM operations and stringent compliance requirements may need to integrate best-of-breed systems. Moreover, SAP S/4HANA offers the essential capabilities for enterprises requiring sophisticated eCommerce platforms, including features like CDP and CPQ. Its flexibility and enterprise-grade architecture make it a standout solution for diverse operational needs.

SAP’s impressive growth in 2024, fueled by strategic acquisitions and a strong AI strategy, has positioned it as a leading ERP contender, but will its focus on core ERP workflows give it a lasting competitive edge over customer-centric solutions? With initiatives like RISE and GROW targeting the mid-market, can SAP successfully expand beyond its traditional enterprise stronghold? As it aligns with Databricks and enhances adoption rates, will SAP’s momentum continue? Download the full Top ERP Systems in 2025 Report now to see where SAP S/4HANA ranks this year.

1. NetSuite

Securing the top position, NetSuite remains the leading ERP solution. It is recognized for its broad industry success, robust ecosystem, credible marketplace add-ons, and comprehensive functionality. While not as complex as competitors like SAP S/4HANA or Microsoft Dynamics 365 F&O, NetSuite excels in supporting diverse business models, including omnichannel operations, matrix/dimensional inventory, and subscription-based models.

Despite its versatility, NetSuite may not be the best fit for industrial distributors and manufacturers due to limitations in pricing and item master capabilities. However, it performs exceptionally well in lighter manufacturing and consumer-centric industries such as health and beauty, fashion, apparel, and CPG. Its strong financial capabilities, coupled with an integrated HCM solution, also make it a preferred choice for service-centric industries, including smaller banks, credit unions, financial services, non-profits, as well as the technology and media sectors.

NetSuite’s top ranking is backed by its product quality. But how can businesses avoid the common pitfalls of over-customization and integration issues that lead to implementation failures? With no clear AI-first roadmap and limited portfolio momentum, does NetSuite risk falling behind its competitors in the long term? As it enters the field service vertical to compete with Acumatica, will NetSuite’s strategic direction be enough to maintain its position? Or will it be overshadowed by newer market challengers? Download the full Top ERP Systems in 2025 Report now to see where NetSuite ranks this year.

Conclusion

Choosing the right ERP system can be a daunting task due to the many factors to consider. When it comes to critical digital transformation initiatives, where the stakes are high and job security could be affected, it’s important not to base your decision on popularity alone. While systems like SAP may carry a strong reputation, relying on this alone can be a risky strategy.

Instead, adopt a more structured approach to ERP selection by carefully assessing solutions that are tailored to your specific industry or market segment. This thoughtful, strategic process will increase the chances of finding an ERP system that truly meets your organization’s unique needs and long-term goals.

FAQs

With uncertainty surrounding how AI agents will influence transactional applications, many ERP vendors are still in the experimentation phase until clearer expectations emerge across the industry. This phase could lead to intriguing developments, such as new interaction models, architectural changes, or even the potential obsolescence of certain categories. It could also significantly alter the positions of ERP vendors.

In recent years, cloud-nativeness and upgrades to cloud technologies have been a dominant focus for both vendors and customers. Newer cloud-native vendors held an unfair advantage over legacy vendors, mainly because they faced fewer challenges related to backward compatibility. However, this advantage may no longer hold in the new world. In fact, legacy vendors could now have the upper hand over cloud-native vendors, thanks to their more robust backend layers and the ease of integrating AI agents, which, in terms of efforts required, might be simpler than completely rewriting an application with cloud-native technologies.

Ease of implementation is just one advantage; it also offers superior interfaces, potentially revolutionizing the ERP industry and significantly shifting vendors’ positions. As with any technological advancement, new vendors could emerge if building AI-first systems becomes easier than upgrading legacy systems, further disrupting the market. Another key innovation that could have a major impact on the ERP market is the adoption of no-schema databases, once (if ever) proven to provide the same transactional integrity required by ERP applications. While there are significant developments on the horizon, it’s still too early to predict the future direction of the ERP industry. Therefore, for this year, the positions of ERP vendors will remain relatively stable, with some changes.

10. Acumatica

Breaking into the top 10 ERP vendors is no small feat for companies with revenue under $100 million, yet Acumatica has successfully earned its place. However, its presence in segments exceeding $100 million in revenue remains limited, with stronger traction among businesses generating $50–100 million. Geographically, Acumatica’s footprint is also narrower, concentrated in developed markets like the US, UK, and Australia. While Acumatica delivers solid operational capabilities as a true ERP solution, its micro-capabilities are relatively lean for complex industries such as manufacturing. Competitors like Infor, Epicor, and IFS offer deeper functionality for businesses advancing their ERP maturity. That said, Acumatica’s simplicity, affordability, and ease of implementation make it a strong choice for companies moving beyond entry-level solutions like Odoo or QuickBooks.

Is Acumatica’s focus on cloud-native features like enterprise search and mobility enough to meet your business needs, or could its limited operational depth pose challenges? How does its vibrant marketplace help fill solution gaps, and what risks come with its limited native global localization compared to competitors like NetSuite and Sage Intacct? While Acumatica’s pricing is often viewed as a strength, how might its complexity affect your budgeting? With recent updates introducing a PSA module for professional services, how does this change its suitability for your industry? And with lingering questions about its AI roadmap and presence among larger enterprises, is Acumatica still a top contender for your ERP strategy in 2025? For deeper insights, download the full Top ERP Vendors in 2025 report now!

9. Deltek

Deltek is a specialized ERP vendor with a strong focus on government contracting, construction, and architecture sectors. It has a proven track record of success in small to upper-mid-market accounts within these verticals, offering tailored capabilities and data platforms designed to meet their unique needs. However, its suitability may be limited for companies with diversified business models or those pursuing M&A strategies to expand beyond their core industries.

How does Deltek’s ownership by Roper Technologies impact its growth potential compared to ERP vendors backed by larger private equity firms? What role do strategic acquisitions, such as IntelliTrans, play in strengthening Deltek’s capabilities for regulated manufacturing industries? With its proprietary data and research providing a unique edge, how can businesses leverage these resources for benchmarking and compliance? While Deltek’s subject matter expertise continues to secure major clients, will its slower AI innovation hinder its long-term competitiveness? And as Deltek’s dominance in its niche industries remains strong, is it still the right choice for your ERP strategy in 2025? For deeper insights into Deltek and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

8. Sage

Sage, traditionally known as an accounting software vendor with strong distribution channels through accounting firms, maintains a presence in the ERP market. Their legacy products—Sage 100, 200, 300, and 500—continue to serve existing customers, while Sage 50 competes directly with QuickBooks in the small business segment. Sage’s growth strategy emphasizes newer solutions like Sage Intacct, which targets smaller service-sector accounts, and Sage X3, positioned for larger enterprises and process manufacturing industries such as Food & Beverage and Life Sciences.

How does Sage’s reliance on partner add-ons impact its ability to compete with cloud-native ERP vendors offering richer operational capabilities? With Sage’s legacy solutions still maintaining market presence, what challenges might your business face when transitioning to its newer offerings? While Sage’s strong focus on security and regulatory compliance aligns well with AICPA standards, could these features feel excessive for smaller businesses without stringent audit needs? And with Sage’s AI strategy remaining unclear, how might this uncertainty affect its long-term competitiveness? To explore Sage’s positioning and insights into other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

7. QAD

QAD stands out as a specialized ERP solution designed for supply chain-intensive industries such as Automotive, Food & Beverage, and Life Sciences. With integrated supply chain and PLM capabilities, QAD effectively addresses complex challenges within highly specific micro-verticals—challenges that many broader industry solutions may struggle to meet.

How will QAD’s transition to its new O3 cloud-native platform impact its competitiveness in the ERP market? With its move to AWS, Java, MariaDB, and TypeScript aligning with modern architectures like NetSuite, could this shift improve scalability and flexibility for your business? How does QAD’s acquisition of Redzone—integrating HCM and shop floor processes—enhance its value for manufacturers and industrial businesses? As QAD aligns its cloud transformation with emerging AI trends, could this timing position it for greater long-term success? And with Thoma Bravo’s typical investment timeline nearing its midpoint, how might future ownership changes influence QAD’s strategy? For deeper insights into QAD and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

6. IFS

IFS follows a strategy similar to QAD, Deltek, and Unit4 but distinguishes itself with higher revenue. Like Epicor, IFS has experienced notable growth, recently surpassing the $1 billion revenue milestone. Positioned as a strong alternative for enterprise companies seeking deep operational functionality, IFS offers capabilities that go beyond traditional horizontal ERP solutions like SAP and Oracle. Its enterprise-grade EAM and field service capabilities have helped IFS secure contracts with major airlines and MROs—markets historically dominated by SAP and Oracle—where managing large fleets of service technicians is critical.

How will IFS’s strategic acquisitions and focus on predictive maintenance reshape its role in manufacturing-centric ERP solutions? With its expanding presence in North America, can IFS effectively challenge established players like Infor, SAP, and Microsoft in larger enterprise accounts? While IFS’s AI investments have focused on data-related innovations, how might its approach to generative AI influence its future capabilities? And given IFS’s significant install base of best-of-breed solutions, how should buyers assess its ERP-specific value? To explore IFS’s positioning and insights into other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

5. Epicor

Like IFS, Epicor belongs to the exclusive $1 billion revenue club, offering a diverse portfolio of industry-leading solutions across multiple micro-verticals. Notable products include Epicor Kinetic, Epicor Prophet 21, Epicor Eclipse, BisTrack, and LumberTrack. While Epicor was slower to adopt cloud technologies than some legacy vendors, it has made significant progress. Its Kinetic UI and UX now deliver mature cloud capabilities, including enterprise search. Epicor has also been developing enterprise traceability transactional maps similar to those found in SAP, marking a key advancement for the platform.

How does Epicor’s deep focus on micro-verticals give it an edge in industries like metal, automotive, and aerospace? With its fully integrated MES available as a standalone solution, could Epicor be the right fit for businesses seeking advanced Industry 4.0 capabilities? How will Epicor’s recent acquisitions, such as S&OP planning and PIM, enhance its integrated suite—and what challenges might arise for customers needing to replace existing solutions? As Epicor’s leadership shifts focus toward AI readiness, how soon can businesses expect meaningful innovations? To learn more about Epicor’s position and other top ERP vendors in 2025, download the full top ERP vendors in 2025 report now!

4. Infor

Infor’s revenue surpasses that of Sage and Epicor but remains significantly lower than the largest ERP vendors. With its comprehensive product suite, Infor competes with Epicor, SAP, Oracle, and Microsoft, offering enterprise-grade solutions tailored to specific industries. While Infor’s global reach may not match SAP or Oracle, its strength lies in deep vertical specialization. It is also among the few vendors outside the industry’s largest players capable of delivering a best-of-breed architecture similar to SAP, Oracle, and Microsoft. In certain areas, such as workforce management (Infor WFM) and supply chain connectivity (Infor Nexus), its capabilities may even outperform Microsoft’s, which relies on third-party add-ons for these capabilities.

How does Infor’s ability to deliver robust industry-specific functionality give it an edge over smaller vendors like Epicor and Aptean in demanding sectors such as Aerospace, Healthcare, and Utilities? With its recent shift toward a platform-centric approach, how might Infor’s strategy mirror successful models from Salesforce and Microsoft? As Infor announces AI initiatives, what gaps remain in its roadmap for integrating AI-driven innovations? And with new partnerships positioning Infor to target larger accounts, can it successfully expand its presence in enterprise markets? For deeper insights into Infor’s strategy and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

3. Microsoft

Microsoft has significantly strengthened its cloud-native capabilities across its two flagship ERP solutions: suites of applications targeting larger companies such as Project Operations or Supply Chain Management — and Business Central. Similar to SAP and Oracle, Microsoft offers a comprehensive suite of best-of-breed applications to support enterprise architecture, with Azure standing out as a leading cloud infrastructure platform for custom application development. Its seamless integration with the Microsoft 365 Suite further enhances its overall value proposition.

How does Microsoft’s dominance in both ERP and CRM categories enhance its competitive edge, particularly against SAP and Salesforce? With its cloud-native ERP capabilities outperforming SAP in some areas, could Microsoft’s solutions better support your business model needs? While Business Central’s reliance on third-party add-ons may limit its core operational depth, does Microsoft’s extensive developer ecosystem help mitigate these gaps? And as Microsoft positions itself as an AI leader, how might its still-unclear roadmap impact future innovation? For a deeper look at Microsoft’s strategy and insights into other top ERP vendors, download the full Top ERP Vendors in 2025 report now!

2. Oracle

Oracle offers two prominent cloud ERP solutions: Oracle Cloud ERP and NetSuite. Both are highly advanced in cloud capabilities, though they cater to different segments. NetSuite, with its extensive localization and deep operational functionality, is particularly well-suited for small to upper-mid-market companies.

How does Oracle’s deep integration with Java and Oracle databases give it an advantage in industries like media, telecom, and energy? With its strong presence in both enterprise and mid-market segments, can Oracle maintain its ERP leadership despite its growing focus on database and cloud infrastructure? Will NetSuite’s vibrant ecosystem offset Oracle’s slowing ERP momentum? And how will Oracle’s Cerner acquisition shape its influence in the healthcare sector? For a comprehensive analysis of Oracle’s position and insights into other top ERP vendors, download the full Top ERP Vendors in 2025 report now!

1. SAP

SAP holds the largest market share in the ERP space, driven largely by its dominance in enterprise deals, which are significantly larger than mid-market transactions. Its extensive portfolio features best-of-breed solutions, particularly within the SAP S/4HANA Suite, which is favored by enterprise-grade organizations. Key offerings such as SAP SuccessFactors (HCM), SAP Hybris (Commerce), SAP EWM (WMS), Ariba (P2P), and Concur (T&E) further expand its comprehensive capabilities.

How does SAP S/4HANA’s in-memory architecture give it an edge in managing high transaction volumes and complex traceability? With its ability to streamline multi-country operations in a single database, could SAP be the right fit for your global business needs? As SAP continues to refine its mid-market strategy with Rise and Grow, will it successfully capture SMB traction despite lingering uncertainties around SAP Business One and ByDesign? And how might SAP’s Databricks partnership enhance its cloud capabilities in a competitive landscape increasingly shaped by AI innovation? For deeper insights into SAP’s positioning and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

Conclusion

The ERP market is set for significant transformation in 2025, with AI-first strategies likely taking center stage. The traditional advantage held by cloud-native vendors may no longer be as relevant, paving the way for new categories and potentially new vendors offering AI-driven solutions. While AI is expected to be the dominant theme of 2025, other developments, such as no-schema databases, could also have a profound impact on the ERP landscape.

Though it’s too early to predict how these trends will reshape the industry and affect vendor positioning, one thing is certain: ERP as we know it today will look very different in the near future. Who’s ready for an exciting (and possibly uncertain) journey ahead?

FAQs

The ERP system price is complex to understand. It contains several variables impacting not only your costs but the outcome of your project. With several options available, it’s often hard to compare them and assess the actual ERP software cost of ownership.

Although you might appreciate the straightforward ERP System Price with fewer variables, they offer flexibility. Some pricing models could be more affordable than others, depending on your business model.

Therefore, a thorough understanding of different variables of ERP System Price and how they would impact the implementation is essential.

This article will teach you various factors that drive the costs of your ERP project.

ERP Project Cost Categories

Before we start understanding each cost element, let’s first discuss the categories that impact the costs of an ERP project.

Depending on the complexity of the project, the category of costs could vary. For example, the regulatory or public sector space could have many more cost elements underneath hosting costs.

Similarly, suppose the scope of your ERP project extends beyond the traditional ERP capabilities. In that case, you might require several ERP add-ons, creating a further need for several integration platforms. That said, here are the most common categories:

1. ERP Software Licensing Costs
2. Project Implementation Costs
3. ERP Add-on Licensing Costs
4. Integration Platform Licensing Costs
5. IT Infrastructure and Hosting Costs
6. Internal Staffing Allocation and Opportunity Costs
7. ERP Support Costs and Upgrade Costs

ERP Software Licensing Costs

On-prem ERP System Price Option

When it comes to ERP software licensing costs, the on-prem and cloud pricing models could differ significantly. The one-time ERP system price for an on-prem individual license could be 2.5-3x of a SaaS user. Additionally, the on-prem model will require you to pay software maintenance costs of ~25% of your licensing fees each year.

With an on-prem option, since you pay upfront, your first year’s spend is likely to be more. On-prem users are typically more expensive because cloud models allow you to distribute your license costs over several years.

To compare the On-prem and SaaS model differences, suppose that both options support three user tiers.

Also, assume that you have 60 employees in total. Of these, ten are financial and operations admins requiring access to planning modules and financials. Twenty are managers/supervisors who approve POs and assign tasks, etc. The remaining 30 could be shopfloor or warehouse workers. They might require interactions with ERP for data entry, such as labor or material reporting. Here is how you can compute the costs by comparing both on-prem and SaaS options.

Total Spend Calculation

• # of users: standard users = 30, manager users = 20, admin users = 10
  
• SaaS: standard user = $100/month, manager user = $150/month, admin user = $250/month
• Total Annual Spend SaaS for 60 users = 30*100*12 + 20*150*12 + 10*250*12 = $102,000
• Total 5 Year Spend Saas = $102,000*5 = $510,000
  
• On-prem (one-time fee): standard user = $3,000, manager user = $4,500, admin user = $7,500
• Total Spend On-prem for 60 users = 30*$3,000 + $4,500*20 + $7,500*10 = $255,000
• Total 5 Year Spend Including 25% annual Maintenance = $255,000 + $255,000*.25*5 = $573,750
• Assume that you will spend $2,000 per month for hosting, infrastructure maintenance, backup, and upgrades. Even if you decided to maintain your server and hardware, you would spend about the same on Windows, VM licenses, and hardware. You might also pay additional costs for a special internet connection, electricity costs, installation, etc.
• Total 5 Year Spend Including Maintenance and Hosting = $573,750+ $2,000*12*5 = $693,750

Depending on the price offered by the vendor, the on-prem option could be higher or lower.

For the on-prem option, just because you pay one time, there is a prevalent misunderstanding that it is typically cheaper. Once you have accounted for all costs, you would realize that it is rarely the case. These costs could include increased consulting costs and internal efforts to maintain your data center. Additionally, the on-prem option would not scale as quickly. Furthermore, you might also have a significant unused capacity to accommodate for your seasonal spikes in volume.

Concurrent Option

However, there could be potential cost savings opportunities with an on-prem option if you bought concurrent users. While rare with cloud ERP providers, some cloud ERP vendors such as Acumatica also offer this option. A concurrent license allows multiple users to access the same license seat simultaneously. But its cost could be 2-3x of the regular user.

Therefore, if you plan to opt for this model, you may need to analyze your ERP users’ expected usage behavior. If most of your users are seasonal workers or work in shifts, the concurrent option could be appropriate. This option allows your shift workers to use the same license seat without impacting other users’ workflow. It will also help save significantly in licensing costs.

SaaS ERP System Price Option

Named User Option

The named user option, which is the most common cloud ERP licensing model, allows you to pay for each user. Besides paying for each user, some ERP vendors may also have additional surcharges for base costs or a minimum number of ERP users. Additionally, they might increase their ERP system price based on the edition.

The other ERP vendors make it more comfortable with their flat ERP system price per user option without any complications. But the disadvantage of the flat-price-for-all model is that you might pay higher for non-admin users.

Several ERP vendors that serve small-sized customers might also have tiers with their ERP pricing. For example, the starter edition for these ERP vendors could be significantly cheaper. But once you reach 20 users, they might upgrade you to the next tier, increasing your per-user ERP system price.

Consumption-based Option

The consumption-based ERP system price is another standard pricing model that exists for cloud ERP software. The consumption-based price tier design bases on the number of transactions as opposed to the number of users. The transactions could be the monthly volume of sales orders, purchase orders, or invoices, depending upon whichever is higher.  Once you grow the volume, you might need to upgrade to an expensive tier.

The advantage of a consumption-based ERP system price is that you will get an unlimited number of users. However, the pricing model is even more complicated as it’s hard to estimate the expected transaction volume. Also, the perceived fear due to unpredictable costs with expensive tires may keep off several buyers. These tiers, however, could exist even with the named users.

Still, once you understand the model’s nuances, you could have significant cost savings. These cost savings could especially be relevant if you are a low-volume business. Some examples of these low-volume businesses could include high-dollar manufacturing (MTO, CTO, or ETO). They could also include distribution (industrial or machinery), services, or construction businesses.

Entity-based Option

Another ERP system price model for cloud ERP software is to charge based on the number of entities. This pricing model includes entities as an additional variable in its model, together with users.

ERP System Implementation Costs

Besides your ERP software license costs, you will need ERP consulting help to make sure the new ERP system configures appropriately. You will also need their help to customize the ERP software as per your business requirements.

The need for an ERP system implementation consultant

If you had never bought an ERP before and used smaller-sized business software such as Xero or QuickBooks, you might mistakenly assume and question the need for ERP consultants and training.

Businesses that assume this might learn the hard way as implementing ERP software is like learning a new language.

Since ERP implementation systems are highly configurable and customizable, even the best ERP system may not provide an optimum throughput if not configured correctly. To calibrate optimally, the ERP consultant must have experience working with similar businesses to reduce their training time on your business.

Additionally, they require mastery of that specific ERP software to recommend appropriate options and structure your data in a way that reduces friction from processes and expedites your business transactions.

Finally, since ERP systems are highly involved in nature, the implementation also includes training your team to ensure that your team can successfully use the product for their day jobs.

How ERP system implementation consultants charge

Since ERP consulting cost line item differs from your ERP software license, you might likely sign two separate contracts with two completely different companies. They might also follow completely different payment terms and structures.

Unlike your ERP software license, ERP implementation costs are project-based and require you to pay one time depending upon the efforts needed to implement an ERP project.

The duration and skillsets required for your ERP project could vary depending upon the complexity of your business operations and your ERP system needs. More straightforward ERP implementation could take 6-9 months, while smaller companies may be able to go live within a few months.

Your ERP implementation duration would also range based on your data’s current state and your process documentation maturity.

Types of ERP Implementation Project Contracts

The pricing model for ERP implementation could vary depending on the engagement model of your consultant. The four most common models exist when it comes to ERP implementation projects.

Time and Material (T&M)

The most common model is time and material (T&M), which essentially charges based on the hours worked.

With a T&M mode, you may want to go for dedicated resources since an ERP implementation project could involve many stakeholders. And if you don’t allocate dedicated resources to the ERP project, resource constraints could cause additional wait times and a longer implementation cycle, increasing your costs and risks. The downside of the dedicated resources is that the ERP consultant might bill you for hours even while waiting for your team to make progress.

Due to the high rate for ERP consultants, you might perceive the T&M mode to be the most expensive. But like other service companies, ERP consulting companies most commonly use them as it offers the least risk for them due to the cost overruns or changed scope. It is also the most recommended methodology as ERP projects are harder to scope and execute as fixed-bid projects.

Fixed-bid

The other standard ERP implementation model includes fixed-bid where the consultant charges based on the project or the scope.

While it might appear attractive at a surface level, it’s tough to assess an ERP implementation scope beforehand.

The ERP consultant might bill you for any scope creep, which might have significant cost overruns. With fixed-bid, you might also not have the flexibility to change the requirements as you gather more information about your business.

Recurring Model

The third and perhaps the most effective for both parties would be the recurring model. This model charges based on per day or month (sometimes distributed over several years).

Computed non-linearly, the average per-hour rate in this model is highly subsidized and lower as the consulting company has a predictable, fixed revenue stream. This model also doesn’t have as much admin overhead compared to the T&M model.

The advantage of this model is that you don’t pay the cost-prohibitive per-hour rate for each ERP consultant. And at the same time, you don’t lose the flexibility you would with the fixed-bid pricing model. However, not every ERP vendor would agree to this pricing model due to the significant risks involved from their perspective.

Whichever ERP implementation project contract you choose, make sure you read the fine lines of the agreement. Sometimes an ERP consultant might claim that they might finish the ERP implementation at half the cost. But the fine lines might include only a certain number of hours in that price that might be valid for a couple of months.

After you exceed that timeline, they might bill you a very high per-hour rate to make up for the lost revenue as part of your fixed bid ERP project contract. Additionally, with this contract, the assumption would be that you will carry out most of the responsibilities and get trained using the documented resources.

Unless you have an in-house consultant with deep familiarity with the ERP system, you will require a lot more handholding than your ERP vendor would provide as part of their fixed bid.

Therefore, the fixed-bid option may appear most lucrative on the surface. It requires significant expertise to make it work. With the other models, you have flexibility and control in measuring and controlling your costs.

ERP Add-on Licensing Costs

Depending upon the complexity of your needs, business operations, and ERP product maturity, you might require several ERP add-ons. The add-ons could be as big as other ERP software with deeper capabilities in a specialized area such as Workday for deeper HR capabilities not offered by your core ERP system. Or it could be a plugin to integrate two software for them to be able to communicate—for example, an outlook or a credit card processing plugin.

These add-ons may not be part of the core ERP software just because not everyone uses them. Or they might be out of the scope of core ERP system capabilities.

Depending upon the publisher of the add-ons, the pricing model and licensing could vary. For example, if the add-on belongs to the ERP publisher, they might align both their products’ pricing, making the purchase experience more comfortable. If your ERP reseller or the ERP consulting company owns the add-on and is built specifically for your ERP software, they might also align with your core ERP system.

However, suppose a company owning the add-on supports multiple ERP software, or the add-on is not necessarily ERP-centric. In that case, the add-on could follow a completely different pricing and licensing model. While your ERP system could be a cloud ERP software, it doesn’t mean that the add-on would be cloud software as well.

Like ERP software, since an add-on is software in itself, the cost categories discussed in this article could apply to the add-on. Besides, you may have a separate consulting company that might specialize in that product, so you need to accommodate their implementation costs as well. Furthermore, you might need to align the user types in both software to ensure that appropriate users can communicate with both systems.

Integration Platform Licensing Costs

Like add-ons, you might require several integration tools depending upon your add-ons and ERP software’s underlying technologies. If your ERP publisher or consulting company owns the add-on, they might bundle the integration platform as part of the core ERP system. In this case, it might also be cheaper as they might include as part of their core offering to upsell their ERP add-on software.

However, suppose the add-on differs entirely from the underlying ERP. In that case, you might require a specialized integration platform or might pay your consultant to develop the custom integration code if the add-on doesn’t include a pre-integrated option. As an add-on, an integration platform is software in itself and may require you to consider all the cost elements discussed in this article, along with the costs for an ERP integration consultant. You might also need to align all software licenses involved in the integration to ensure you have appropriate licensing privileges to communicate with all software.

IT Infrastructure and Hosting Costs

This cost is only applicable if you decide to go for an on-prem ERP software or private-cloud option or if one of the add-ons may not support cloud options. Estimating IT infrastructure and hosting costs could be even more involved tasks and a project in itself.

As a first step, each software publisher will provide a software and hardware requirement sheet that you can use to estimate the software and hardware needs for your ERP project. After consolidating all software and hardware requirements, you need to work with an IT infrastructure company specializing in provisioning infrastructure or the cloud. Your ERP consultant may have in-house capabilities, or they might partner with another IT firm to provide this capability for you.

Internal Staffing Allocation and Opportunity Costs

Most companies might exclude opportunity costs just because they might not be capable of tracking internal costs. However, this is a critical cost element to calculate the total cost of ownership and compare different ERP vendors. It’s also an important metric to assess the activities that might be cheaper to perform internally vs. externally.

Opportunity Costs Calculation

The best way to calculate your internal costs is to compute each of your internal resources’ hourly rates. For example, if your internal resource’s salary is $X, then their hourly rate wholly based on this salary would be ~X/2K. So, if your resource makes $100K in annual salary, the hourly rate for this resource would be $100K/2k = $50/hr.

If they utilize benefits and vacation, you might have a surcharge of another 30% on top of this rate. So the total rate accommodating these benefits could be $50*1.3 = $65/hr. Additionally, you might want to include marginal admin costs associated with this resource. These admin costs could be their individual need for equipment such as their computers, tools, software license costs, and costs of running their payroll, etc. If this admin marginal overhead could also be 30%, their fully loaded hourly rate could be $65*1.3 = $85/hr. Likewise, you might want to accommodate all your variable costs and proportionate fixed costs to come up with your resources’ fully-loaded costs.

Once you have computed the hourly rate for each of your internal resources, estimate the time they will invest in the project. For example, suppose you have two full-time resources that make $100K in salary, each dedicated to the six-month project. In that case, your internal costs could be $85*168*6*2 = $171,360, where $85/hr is the rate based on $100K salary, 168 is the number of paid hours in a given month, 6 is the number of months, and 2 is the number of resources.

ERP Support Costs and Upgrade Costs

There would be several cost elements that would affect this line item. The number of cost elements could also vary based on the configuration and ERP deployment model selected. The consulting and support costs could be higher for the on-prem model to maintain infrastructure, backup, and hardware upgrades. For the cloud ERP, the major cost drivers include tier upgrade, additional storage required, and the cost to maintain separate test or dev instances.

Infrastructure Support Costs

If you opt for an on-prem ERP, you might want to account for maintaining windows and VM licenses and additional costs, including consulting help to upgrade them. With the cloud ERP option, your ERP vendor will take care of these activities for you, and your licensing costs would include them. The cloud ERP option includes most costs from an infrastructure perspective as part of your licensing bundle.

User Support Costs

The user support would be similar in both options, where the ERP publisher would cover any product-related issues. At the same time, your ERP consultant provides support only for a few weeks after the ERP project implementation.

If several add-ons and integration tools are associated with your ERP implementation, each company owning the code might support their respective products. However, if there is an issue that you can’t attribute to a specific product, or if it is related to your specific requirements, you might not get much help from publishers. The support reps at publishers may not have ERP implementation experience or expertise with your industry so that communication could be a challenge as well.

The best way to ensure that you always have one point of contact and want to invest predictable cash flow in your support costs instead of a steep hourly rate for your ERP consultant is to subscribe to a premium support package. They might cover it on a per-user basis or as a percentage of your license fee to provide one point of contact for all your support needs.

If you didn’t have access to such support from your ERP consultant, you might invest a ton of money in briefing and training each new consultant that you might hire to support you with your issues. The premium support from the ERP consultant would provide a straightforward computation of your support expenses. For example, they might charge $50-$100 per user per month, depending upon the number of ERP users accessing the system.

Version Uplift Costs

With a cloud ERP system, you get the most recent functionality frequently. While you have access to the most updated product all the time, it might be an issue during version uplifts. The newly released functionality may cause merge issues with your customizations. To resolve these merge issues, you would need consulting help. The premium support may include the version uplifts as part of their package.

Tier Upgrade Costs

Some cloud ERP software may also have limitations with their tiers. For example, they might have storage or bandwidth limitations. Once you run out of the provider’s storage or if you need more bandwidth to accommodate your growing user base, your cloud ERP publisher might charge you extra to upgrade.

Conclusion

ERP pricing is not easy to understand. Each ERP software, add-on, and consultant may have their model. And each decision you make may have implications for you. A thorough understanding of your cost elements is essential to avoid any cost overruns and mistakenly selecting options that might appear cheaper on the surface.

When you are ready to dive deeper into understanding different cost elements for all your ERP system purchases, make sure to choose the most economical ERP system appropriate for your business model. Also, make sure you account for all internal and external costs to determine the total cost of ownership of an ERP software purchase.

FAQs