Are open source ERP systems really cheaper?
Posted: Wed Jan 29, 2025 8:51 am
From a cost perspective, an ERP solution with open source software is only superficially cheaper. You save on license fees, but you pay more later when you adapt it to the company's business processes. Developer communities are quite active, but you only find out whether the necessary and indispensable industry know-how is actually available to the extent required after a lot of time and money has been invested in custom programming.
If it turns out that the functionality of the basic software is not adequate to reflect the company processes, you may have gained experience, but you have already spent a lot of money and are still miles away from a functioning ERP solution.
To return to the comparison with office programs: a lot of what is perhaps missing in open source office software is basically nothing more than a "nice-to-have" if it is missing in the open source version.
You can still work well with the solution and use workarounds if necessary. However, portugal gambling data if an ERP software lacks a core function that is essential for the company or if the system maps it incorrectly, this can have serious consequences. To put it figuratively, compare this to this: you go swimming in the sea with an air mattress. However, if your air mattress has a hole that you didn't know about beforehand or that you accidentally caused, you will be annoyed afterwards and be happy if you don't drown or can at least swim independently without an air mattress.
Sales Models for Open Source
Since open ERP software is generally free of license fees, providers earn their money through services such as software implementation, customization, training or support. The more popular providers of free ERP software in particular are based on the sales models of standard solutions. This means that license and maintenance costs are sometimes charged.
However, these open source providers, who charge a license fee, usually also contractually “guarantee” the solution, as is usual with “normal” ERP software. If this is not guaranteed, these costs are waived, which, however, brings with it undesirable risks for the company’s success.
The costs ultimately incurred for an ERP system whose functionality is guaranteed - whether it is a "non-free" or "open source" system - ultimately differ little. Open source providers in the business software environment therefore distribute the free ERP software in the usual way and sometimes even include license fees. They operate in a similar way to well-known Linux distributors such as Suse or RedHat.
If it turns out that the functionality of the basic software is not adequate to reflect the company processes, you may have gained experience, but you have already spent a lot of money and are still miles away from a functioning ERP solution.
To return to the comparison with office programs: a lot of what is perhaps missing in open source office software is basically nothing more than a "nice-to-have" if it is missing in the open source version.
You can still work well with the solution and use workarounds if necessary. However, portugal gambling data if an ERP software lacks a core function that is essential for the company or if the system maps it incorrectly, this can have serious consequences. To put it figuratively, compare this to this: you go swimming in the sea with an air mattress. However, if your air mattress has a hole that you didn't know about beforehand or that you accidentally caused, you will be annoyed afterwards and be happy if you don't drown or can at least swim independently without an air mattress.
Sales Models for Open Source
Since open ERP software is generally free of license fees, providers earn their money through services such as software implementation, customization, training or support. The more popular providers of free ERP software in particular are based on the sales models of standard solutions. This means that license and maintenance costs are sometimes charged.
However, these open source providers, who charge a license fee, usually also contractually “guarantee” the solution, as is usual with “normal” ERP software. If this is not guaranteed, these costs are waived, which, however, brings with it undesirable risks for the company’s success.
The costs ultimately incurred for an ERP system whose functionality is guaranteed - whether it is a "non-free" or "open source" system - ultimately differ little. Open source providers in the business software environment therefore distribute the free ERP software in the usual way and sometimes even include license fees. They operate in a similar way to well-known Linux distributors such as Suse or RedHat.