Looking for the best ERP software in 2025 for your small business? With so many options like SAP, NetSuite, Microsoft Dynamics, and Odoo on the market, choosing the right one can be overwhelming.
Among all ERP platforms, Odoo stands out in 2025 for its affordability, quick setup, and flexible modular design—making it a strong fit for fast-growing SMEs.
Yet, despite all of this, Odoo remains one of the most popular ERP software options for SMEs.
But how does Odoo compare to other ERP software such as SAP, NetSuite, and Dynamics 365? What are Odoo’s key differences and advantages over its competitors? And why should you consider Odoo as the best ERP solution for your small business?
As you read this article, we will answer these questions in more detail so you will clearly understand how Odoo can benefit your small business in 2025.
What is an ERP?
Before we dive into the comparison of Odoo vs ERP software, let us first define what an ERP is and why you need one for your SME.
ERP is an acronym for enterprise resource planning. Essentially, it is a software system that enables companies to automate various business processes, such as inventory management, sales, human resources, accounting, and manufacturing.
Also, ERP software helps you to automate your operations, improve your productivity, reduce costs, and enhance customer satisfaction. Ultimately, this enables you to make better business decisions and increases your ROI.
There are two types of ERP software:
- On-premise ERP
- Cloud-based ERP
To use on-premise ERP software, you install and host it on your own servers, while cloud-based ERP software is hosted and managed by a third party.
Typically, on-premise ERP software requires more upfront investments, maintenance, and customization, whereas cloud ERP software is typically more flexible, scalable, and affordable.
A Quick Introduction to Odoo ERP
Odoo is a cloud-based and open-source ERP solution that offers over 7,300 applications to manage various aspects of the business, such as accounting, sales, inventory management, project management, and HR management.
The best part is that Odoo is modular, meaning that you can choose and install the modules that you need for your business, such as CRM, accounting, e-commerce, project management, inventory, manufacturing, etc. As a result, growing businesses can start with a few apps and add more over time.
Odoo’s Standard plan now starts at $7.25/user/month (billed yearly) or $9.10/user/month (billed monthly), with access to all apps on Odoo Online. For businesses needing Odoo Studio, multi-company support, or on-premise hosting, the Custom plan is available at $10.90/user/month annually.
[Source: Odoo Pricing]
In 2025, Odoo released version 18 with key improvements like a Progressive Web App (PWA), simplified navigation, and faster mobile access, making it even more SME-friendly.
How can SMEs benefit from an ERP Solution like Odoo?
As an SME, you might think that ERP software is only for large corporations and that you don’t need one for your business. However, this common misconception can limit your growth and potential.
There are many ways in which ERP software can benefit SMEs, such as:
• Streamlining Business Operations
To compete successfully in the modern business world, a small company needs to handle complex operations more efficiently. This is where ERP software can help by automating and integrating accounting, inventory, sales, and human resources tasks. Consequently, this eliminates manual tasks, errors, and redundancies and improves efficiency and accuracy.
• Reducing Cost
ERP software can help you optimize resources and expenses and avoid unnecessary waste and duplication. ERP software can also help you lower your IT and operational costs, as you don’t need to invest in hardware, software, or maintenance.
• Better Productivity
Saving time and resources is inversely proportional to the output and quality of your product or services. Using ERP software provides you with real-time data and insights into your business performance, allowing you to monitor and measure your progress and results.
• The Best Customer Experience
With the use of ERP software, you get a 360-degree view of your customers, their needs, preferences, and feedback. This empowers you to deliver faster and better products and services, which inevitably translates into a better customer experience and boosts customer loyalty.
A 2025 report by Panorama Consulting shows that 88% of SMEs that implemented ERP systems reported better decision-making and 68% saw improved customer satisfaction.
Odoo vs SAP, NetSuite, and Dynamics 365: 5 Key Differences
Now that you know what an ERP is and how it can benefit your SME, let us compare Odoo vs other ERP software and see how they differ in terms of features, benefits, and drawbacks.
These three ERP giants—SAP, NetSuite, and Microsoft Dynamics—are often the go-to solutions for mid to large-sized companies, but how do they really compare to Odoo in 2025?
SAP: It is one of the oldest and largest ERP software providers in the world, with over 440,000 customers across 180 countries. SAP offers a variety of ERP solutions, such as SAP Business One, SAP Business ByDesign, SAP S/4HANA, etc.
NetSuite: NetSuite is a leading cloud-based ERP software provider with over 37,000 customers across 219 countries. With NetSuite, you can manage accounting, CRM, e-commerce, inventory, and projects all in one place.
Microsoft Dynamics: Microsoft Dynamics is a suite of ERP and CRM software solutions that are part of the Microsoft ecosystem. Microsoft Dynamics offers various ERP solutions, such as Microsoft Dynamics 365 Business Central, Microsoft Dynamics 365 Finance and Operations, Microsoft Dynamics GP, and more.
Need help evaluating ERP options? Talk to our ERP experts.
Here are the five key differences between Odoo and other ERP software, based on our analysis and research:
1. Target market
Odoo caters mainly to SMEs, while other ERP software targets large corporations. SMEs can benefit from Odoo’s scalability, flexibility, and user-friendliness, as well as its affordability.
Additionally, Odoo is suitable for startups, entrepreneurs, and freelancers who need an ERP solution that is easy to use.
However, other ERP software, such as SAP, NetSuite, and Microsoft Dynamics, are more suitable for large enterprises that need a complex and robust ERP solution to handle more advanced and sophisticated business processes, such as global operations, multi-currency, multi-language, and multi-company.
Odoo is now also gaining traction with mid-market companies, thanks to improved performance, partner ecosystem, and vertical apps built for retail, hospitality, and services.
2. Pricing
The cost-effectiveness of a business management system is something that always makes a massive difference in the operating cost of any business. That’s where Odoo’s reasonable pricing structure shines for SMEs.
The Standard plan starts at $7.25/user/month (yearly billing) or $9.10/user/month (monthly billing), and the Custom plan—with Odoo Studio, multi-company support, and on-premise deployment—costs $10.90/user/month annually. Odoo.sh hosting and add-ons are additional.
Conversely, SAP, NetSuite, and Microsoft Dynamics have more complex and opaque pricing models that depend on various factors, such as the number of modules, users, features, licenses, and support.
Microsoft Dynamics 365 Business Central will also undergo a pricing increase effective October 2025.
As of 2025, SAP and NetSuite pricing typically starts from around $99–$150/user/month for core modules, with additional costs for implementation, customization, and ongoing support. Microsoft Dynamics 365 Business Central pricing starts near $70/user/month depending on selected features and storage.
3. Customizability
As we told you earlier, Odoo offers a highly modular solution, meaning that there is a dedicated app responsible for each business function.
Odoo also has a marketplace where you can find and install more than 7300 apps and plugins that extend the functionality and features of the software.
While Odoo remains extremely customizable, Microsoft Dynamics now offers extensive flexibility through the Power Platform, and NetSuite’s biannual SuiteApps updates improve tailored capabilities. SAP has also launched industry-specific extensibility tools.
4. User interface
Odoo has a simple and intuitive interface that allows you to access and manage your data and processes with ease.
However, SAP has significantly improved UX with the Fiori design system and new AI-driven simplifications [Source: Henley Morgan]. Microsoft Dynamics now includes Copilot and immersive UI improvements. NetSuite continues to refine its UI for better user workflows. The interface gap is narrowing.
5. Functionality
For SMEs, Odoo offers a wide range of features and functionalities, covering all the essential and advanced aspects of running a business, such as accounting, CRM, e-commerce, project management, inventory, manufacturing, and more.
On top of that, you get some incredibly unique and innovative features, such as a website builder, point of sale, email marketing, social media, and more.
SAP, NetSuite, and Microsoft Dynamics, in comparison to Odoo, also offer very similar functionalities but are more specialized in certain industries or functionalities, such as supply chain management, HR management, and e-commerce.
All major ERP vendors now release updates faster, often integrating AI and industry-specific tools. Buyers should consider vendor roadmaps, not just current features.
Quick Comparison: SAP, NetSuite, and Microsoft Dynamics ERP vs Odoo
Here is a quick overview of Odoo vs Other top ERP software so you can decide which is right for your business.
| Criteria | SAP | NetSuite | Microsoft Dynamics | Odoo |
| Modular Design | Moderate – improving with extensibility | High – via SuiteApps | High – Power Platform enables rich customization | Very High – open-source modularity |
| Industry Focus | Retail, finance, manufacturing, now expanding AI retail solutions | E-commerce, professional services, software, and more | Broad coverage, especially SMBs | SMEs, service & retail, eCommerce |
| Deployment | On-premise or cloud | Cloud only | On-premise or cloud | On-premise or cloud |
| Innovation | High – AI Copilot “Joule”, retail-specific cloud tools | Moderate – SuiteAnalytics, AI integrations | High – Copilot, AI workflow automation | High – PWA, mobile UI, simplified UX |
| Implementation Time | Moderate to Long (months to years) | Moderate (weeks to months) | Moderate (weeks to months) | Short (days to weeks) |
Why Odoo ERP Is Still the Better Choice in 2025
While major ERPs are catching up in innovation, Odoo’s open-source agility, faster implementation times, and modular ecosystem make it the better choice for SMEs.
- Open-source flexibility and transparency
- Easy scaling through 7300+ modules
- Lower total cost of ownership
- Less technical dependency for customization
- Wide community and growing global partner network
Need implementation help? Explore our ERP Services to see how we can support your ERP journey.
Frequently Asked Questions About Odoo and ERP Solutions
1. Is Odoo ERP good for small businesses in 2025?
Yes. Odoo continues to be a top choice for SMEs thanks to its modular system, faster deployment, and growing app marketplace. Its affordability and ease of use make it ideal for businesses that want to scale without high overhead.
2. How does Odoo compare to SAP in 2025?
Odoo is more flexible and easier to implement than SAP, especially for small to mid-sized companies. While SAP now offers advanced AI tools like Joule, it still requires more time and cost to deploy.
3. What industries is Odoo ERP best suited for?
Odoo works well across retail, services, manufacturing, distribution, healthcare, and hospitality. Sector-specific modules and third-party apps make it highly adaptable.
4. Can Odoo integrate with other systems?
Yes. Odoo offers API support, webhooks, and third-party integration modules, making it compatible with payment gateways, CRMs, e-commerce platforms, and more.
5. How much does Odoo ERP cost in 2025?
The Standard plan starts at $7.25/user/month or $9.10 billed monthly, while the Custom plan is $10.90/user/month with extra features. Odoo.sh hosting is billed separately.
Final Remarks on Odoo vs ERP (SAP, NetSuite, Dynamics 365)
Many other top ERP software products are older than Odoo. Still, Odoo has emerged as a viable replacement for SAP, NetSuite, and Microsoft Dynamics due to its scalability and customizable features.
With the 2025 ERP landscape rapidly evolving, Odoo remains one of the few solutions that can keep pace while staying accessible to small and medium businesses.
Furthermore, Odoo ERP is cost-effective and a better alternative when you don’t have a bigger budget but still require customizations to satisfy complex business requirements.
If you’re still wondering whether Odoo is right for your industry, check out Odoo’s sector-specific apps or consult with our team to get a tailored ERP strategy.
If you are interested in trying out Odoo for yourself, you can visit Odoo’s website and sign up for a free trial. Lastly, if you need any help regarding Odoo’s implementation, feel free to contact us. Our team of ERP experts is always ready to help.
Thank you for reading!
