Typically, when SMEs scale beyond their spreadsheets, they are presented with two proven ERP solutions, namely the cost-effective Odoo ERP solution and the enterprise-level SAP Business One. The global ERP market is projected to grow from $106.22 billion in 2026 to $281.58 billion by 2034, showing its popularity and functionality to businesses.
However, the wrong ERP can cost a growing business money, time, momentum, and often its competitive edge. That’s why it is important to put more thought into choosing an ERP that actually fits your needs. Understand your needs and scope of improvement to select a suitable ERP and plan SAP or Odoo ERP implementation accordingly.
Why This Decision Matters Now
If you are growing a business, you will soon reach a point where manual processes don’t work for all operations. Your biggest cues will be delayed access to critical sales and inventory data and hours spent compiling reports from different systems, which slows down decision-making.
Even customer service is taking a hit.
Since the stakes are too high for growing businesses, they are consciously considering how to implement integrated ERP solutions into their operations. As a result, today Odoo has over 13 million users and more than 44000 integrated apps that come with an implementation frame of 1-6 months. Similarly, SAP Business One has over 83000 global customers.
It is proven that poor ERP choices can hamper productivity and cause implementation failures. That’s why it is recommended to match ERP capabilities to your growth targets, complexities of operations and budget limits when deciding on the best system. To do this, understanding the systems and your niche requirements is the first step to ensure ERP success.
What Makes Odoo Different?
Odoo reinstates the idea that businesses should not pay for functions they don’t use or need. Being an open-source modular platform, Odoo enables businesses to start small and scale as their operations expand.
This is how it has transformed business software and has become a popular solution for SMEs across 170 countries. Developers offer around 4,4000 apps and Odoo modules to help businesses select as per need.
Top Advantages of Odoo ERP
Modular Flexibility: Odoo system’s architecture enables business owners to select essential components based on their immediate needs. This flexibility frees them from worrying about or paying for unnecessary Odoo 19 features. It allows companies to start with Accounting and CRM first and gradually move on to add Inventory and Manufacturing modules as their operations grow.
Open-Source: It allows businesses to view, modify, and adapt code according to their needs. This flexibility to customise lets businesses address immediate requirements first and tweak functions as per their brand goals and beliefs.
Speed: SMEs can implement Odoo systems within one to 4 months based on the complexity of needs. The software’s modular architecture and user-centric configuration further ensure quick installation, saving both time and resources.
Cost Structure: The Pay only for what you use pricing is transparent and proves quite cost-effective for SMEs who are just starting.
These features make Odoo suitable for budget-conscious small and medium businesses that need rapid deployment and high customization and have in-house technical resources.
What Makes SAP Business One Different?
SAP Business One offers small and medium businesses access to enterprise-grade functionality. It lets SMEs get enterprise-level power without going through enterprise-level complexity. Research shows that 72% of medium-sized enterprises are adopting SAP Business One to enhance their digital transformation process and overall operational efficiency.
This feature has earned SAP Business One over 1.2 million active individual users globally. Notably, the software is more popular among businesses and regulated industries that require sophisticated management, multi-currency capabilities and audit trails.
Top Advantages of SAP Business One
Enterprise-Grade Foundation: It’s built on SAP’s architecture that’s backed by decades of enterprise software development. SAP Business One lets businesses consolidate financial inventory, sales and purchasing operations into one integrated system.
Industry Solutions: Its vertical modules let businesses address challenges across operations like manufacturing, distribution and retail. The platform also offers over 300+ integrated apps that support industry-specific customisations.
Structured Support: Businesses can access professional training programs, certification and support instruction throughout implementation and ongoing operations.
Scalability Path: The platform allows seamless upgrades to broader ecosystems as businesses grow and scale operations.
These features make SAP Business One ideal for SMEs that require structured implementation, industry-specific solutions and longer SAP integration planning and support.
Odoo vs SAP Business One: The Comparison
Odoo vs SAP Business One Comparison Table
| Parameter | Odoo | SAP Business One |
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| Cost | Cloud Subscription:
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| Scalability | User Capacity:
Deployment:
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| User Experience |
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| Industry Fit |
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| Integration and Third-Party Apps |
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| Reporting and Analytics |
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| Support and Ecosystem |
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| Security and Compliance | Security features:
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Cost and Budget
Odoo pricing starts at approximately $24.90-$31.10 per user every month for the Standard plan, and $49.00-$61.10 per user per month for the Custom plan. Meanwhile, the Odoo ERP implementation cost typically ranges between $10,000 and $75,000 for an SME. So, one year’s cost for 50 users could amount to nearly $40,000-$100,000 in the first year, including implementation, with ongoing costs of approximately $20,000-$25,000 annually thereafter. Notably, the community version of Odoo is available for free for self-hosted deployments. Additionally, a One App Free plan is available with unlimited users on Odoo Online.
On the other hand, SAP Business One’s subscription on average is $110-$219 per user per month for cloud Professional licenses, with Starter at $38-$149 and Limited at $47-$112 per user per month. Perpetual licenses range from $1,350-$3,500 per user as a one-time cost, plus 18-20% annual maintenance fees. Implementation cost would be between $25,000 and $500,000, depending on the scope and customization. For a year, the cost for 50 SAP Business One users would be around $150,000-$300,000 in the first year for cloud Professional with implementation, or $135,000-$175,000 one-time for perpetual licenses plus $27,000-$35,000 annual maintenance. Notably, there’s no free version available.
Implementation Speed
In case of standard deployments, Odoo can Go-live within 4 to 6 weeks for basic implementations, 2-3 months for medium complexity projects and 6-12 months for complex deployments. Companies can opt for a phased rollout and start with core modules first and add other functionalities over time. On the other hand, SAP Business One can Go-live within 3-6 months of following a structured methodology. This stage is supported by complex data migration and configuration. Odoo ERP implementationcan be faster for small to medium-sized businesses, which makes it crucial for businesses that need a quick operational boost.
Customization and Flexibility
Odoo’s open-source architecture allows businesses to make unlimited customisations to their ERP, while its Python-based development can access a vast developer pool. With over 40,000 community and third-party apps available in the Odoo App Store, plus approximately 47 official core applications, the software also offers a lot of options to choose from. It also allows smooth third-party integrations and helps modify core functionality. This makes Odoo more adaptable for businesses with evolving requirements.
Meanwhile, SAP Business One’s proprietary system allows controlled customisation and requires SDK-based development or partner support. Its network of over 500 certified partners further offers structured solutions. Above all, the standardised modules ensure consistency with some flexibility.
Features and Functionality
Odoo’s integrated suite covers CRM, inventory, sales, manufacturing, accounting, project management and HR modules, while website builder and e-commerce are integrated natively. The Standard and Custom plans include all official Odoo apps for a single per-user fee, which provides comprehensive business management capabilities.
SAP Business One comes with financial management and regulatory compliance capabilities. It also has advanced analytics and business intelligence tools and supply chain management features. It also offers strong multicurrency and multi-entity support for international operations. The platform includes comprehensive modules for financial management, sales and customer management, purchasing and inventory control, production and MRP, service management and reporting.
Scalability
Odoo lets companies scale to over 1,000 users. It offers optimal performance for 5-200 users and allows to add modules incrementally. The flexible user pricing models ensure accessibility, while cloud and on-premises deployment options ensure flexibility. Companies can choose between Odoo Online (cloud), Odoo.sh, a managed hosting with development tools, or self-hosted on-premise deployments.
SAP Business One is designed for companies with revenues between $1M-$200M. Its structured growth path to SAP S/4HANA and proven performance with over 200 users make it suitable for scaling businesses. Additionally, its enterprise integration is ready and in tune with the SAP ecosystem. The platform can support 10-20 users, but can handle larger deployments with proper infrastructure.
User Experience
Odoo also offers users a modern, intuitive web interface with a very consumer-like design. This helps minimise users’ learning curve. The platform is fully web-based and mobile-responsive, which allows users to access from any device without investing in any special software. Meanwhile, its clean, consistent UI ensures users familiarity across modules. The interface accommodates both technical and non-technical users effectively.
On the other hand, SAP Business One has a traditional ERP interface, which requires structured training and a steeper learning curve. While its business-focused UI is powerful, it is less intuitive for casual users. This means companies have to be thorough and extensive for onboarding. Similarly, power users and finance professionals adapt well, but employees accustomed to consumer-grade software struggle initially. Its mobile access is also limited.
Industry Fit
Odoo is more suitable for small to medium businesses, startups and growing companies that need flexibility and cost-effectiveness. Its features excel in retail, e-commerce, professional services, light manufacturing and hospitality spaces where core processes evolve frequently. Companies with limited IT resources could also benefit from Odoo’s ease of use and community support. Overall, it is ideal for organisations that prefer agility, quick implementation and ERP adaptability.
SAP Business One typically targets established SMEs and mid-market enterprises in manufacturing, distribution and wholesale with complex operations. The platform is suitable for businesses that require strict compliance, multi-country operations and sophisticated financial management. SAP Business One is also better for those scaling into the SAP ecosystem and seek enterprise-grade business intelligence.
Your Decision Framework – Which Software to Choose
Choose Odoo for your business when you:
- Need to Go-live in the next 3 months
- Have budget constraints
- Would require extensive customization for your unique processes
- Want the flexibility to add or remove modules as and when your needs evolve
- Have access to in-house technical resources or access to Odoo implementation partners
- Seek a modern, easy-to-use interface that supports quick team adoption
- Need integrated e-commerce and customer support tools
Example: A manufacturing company with over 70 employees that’s growing 30% annually and has $10 million in revenue needs a CRM. The company has a budget of $75000 needed to consolidate its QuickBooks, spreadsheet, as well as legacy inventory system. It wants to Go-live before its peak business season. For such companies, opting for Odoo ERP services would be a smarter option.
Choose SAP Business One when you:
- Operate in a heavily regulated industry that demands strict compliance
- Require sophisticated financial management and compliance reporting
- Seek industry-specific functionality and suitable solutions
- Plan to scale $50M revenue in the next 3-5 years
- Value structured professional support and could use formal training programs
- Want proven integration with the SAP ecosystem to understand scalability in the future
- Have at least a $200,000 implementation budget and a 4-6 month timeline
Example: A distribution company with over 150 employees and a $45 million revenue is expanding its operations beyond domestic boundaries. It required multi-currency capabilities, strict audit trails and compliance. It has an implementation budget of $350,000 and plans to initiate a phased rollout across locations in 5 months. Given its scope and requirements, it could do better with SAP Business One.
Questions to Ask to Before Choosing the Best ERP for your Business
- What’s your actual implementation budget, including licensing, customization and training?
- How quickly do you expect the system to become operational to ensure business continuity?
- Do you have unique processes that could require customization beyond standard modules?
- What’s your 5-year revenue projection and growth trajectory?
- Do you have an in-house IT team or need vendor support?
The Implementation Reality of the Best ERP for SMEs
In our decades of experience, we have realised that the implementation approach and skills can make or break your technological upgrade. Gartner says 70% of ERP failures could occur due to poor user adoption and non-alignment with business strategies.
So, both Odoo and SAP Business One can succeed only if you work with experts who understand your business needs and scope.
TechVaria’s proven Odoo ERP implementation methodology of key phases help lower risk. As professionals, we approach it through structured discovery of operations and scale, plan phased rollouts and implement comprehensive change management.
Based on our learnings, to succeed with ERP, you need to start in phases. We always recommend going live with core processes such as financial, sales and inventory modules. Subsequently, you can add to the complexities as your operations go into full swing.
Plan data migration properly and work with clean legacy data to save months of corrections after implementation. Budget is crucial for this to work, so make sure to keep aside 15-20% of it for refinements after you go-live.
Based on this, we can say that neither Odoo nor SAP Business One is better than the other. When it comes to choosing the right ERP for your business, it boils down to context and usage. For instance, Odoo is great when it comes to delivering flexibility and extensive customisation at a reasonable cost, which is what growing SMEs need for quick deployment and scaling.
Similarly, SAP Business One offers access to enterprise-grade structure and industry-focused functionality, which makes it suitable for established companies that have complex requirements, regulatory obligations and have a planned scaling target to meet.
Regardless of which software one picks, the success of it will depend on how smoothly it is implemented. That’s why we stress selecting an ERP implementation partner who understands your business needs, planned growth trajectory, alongside the technology.
Professionals who know the ins and outs of the industry demands and your operational needs will support your sustainable growth through tailored SAP or Odoo ERP solutions.
Talk to us to book your free consultation today.
Techvaria professionals also offer ERP assessment sessions and complete Odoo implementation checklist to offer you suitable solutions tailored to your needs. As certified Odoo implementation partners, we will help you discover the best ERP for SMEs and facilitate implementation that will boost your operations and efficiency and offer measurable ROIs.
