Traditionally, businesses and organizations use to keep a tab of every activity on paper. This makes reporting and tracking difficult, moreover, it also increase the cost on the part of enterprises to maintain an archive. To make things easier ERP software was introduced. One of the significant benefits it offers was, it increases the productivity of employees and also enhances security. However, the implementation of ERP takes a minimum of 17 days. In early 2020, 93% of businesses have seen a sudden success after implementing ERP. However, after the wake of the pandemic, only 2% claim to observe a drop in their annual success in 2021.
From the above-stated facts, you can identify how important ERP implementation has become for the business. But, we have observed a sudden trend among the businesses on whether you choose to open-source ERP solution or a closed-sourced. To help people like you, who are on the hunt to implement ERP or to upgrade the system, this article is for you.
Here in this piece, you will find a brief introduction to open-sources and closed-source ERP, significant differences among these two operating systems, and recommendations based on analysis. Lastly, the world is too big, and to get the right ERP Consultants, this article will equip you with the practical knowledge that you need.
Also Read: How To Choose the Right Odoo Partner?
What is Open Source ERP & Closed Sources?
It is an enterprise resource system that is free and requires no license purchase on the part of the business. In addition to this, an open-source system (OSS) allows businesses to grow without any restrictions. Simultaneously, OSS offers a highly customizable solution to businesses that aim to fulfill every need on a micro and macro level.
On the other hand, closed sourced ERP requires one to purchase a license, and self maintains and customizes the system. Unlike OSS, closed sourced solution has a higher running cost.
Difference Between Open & Closed Source ERP
As the name implies, the code of open-source is freely available to the developers. This means they can customize and create a solution for their client without any restriction. However, the code of closed sourced is not disclosed, and to get any assistance, one has to contact the owner of a particular system, e.g. Microsoft ERP. Some other significant differences are as follow:
- OSS requires no License, but to use a SaaS service one has to pay a minimum subscription fee on a recurring basis. However, the closed source requires a license to operate along with the renewal cost.
- Another significant difference is the freedom to redistribute code which OSS offers and closed-source doesn’t. In some cases, it also results in vendor lock-in.
- Third thing is, open-source requires expert-level customization since the developer only has the code. Therefore to build a custom solution for a business a developer has to integrate multiple applications. This makes the ERP unique. And, you can hire any Odoo developer among the certified Odoo partners available worldwide. But closed source doesn’t offer such liberty. You have to consult the designated ERP solution provider and has to go through a systematic process to resolve a problem.
Learn More: Understanding The Difference Between Odoo Functional & Technical Consultants
Benefits of Open-Sourced Odoo ERP
Here are some significant advantages that one can enjoy after implementing an open-sourced ERP solution:
- Flexible In terms of Customization – The first thing on our list is customization flexibility. Odoo ERP is open-sourced, this makes custom solution development for small and large-scale businesses super easy. Moreover, Odoo has dozens of in-house applications can one can integrate and optimize solutions. Unlike closed source, Odoo offers low-code development solutions by using which you can create your own solution and workflow.
- Free Community Support – Since Odoo is open-sourced and anyone can customize the solution. Therefore, it has a huge community of Odoo developers. This makes support and problem resolution easier.
- Little to no Vendor Lock-In – In addition to what we have said above, Odoo ERP offers no vendor lock-in option. However, to get the right solution you have to consult a certified Odoo Partner. As they have the required experience and more insights than the non-certified ones.
- Low Upfront Cost – In comparison to the closed-source ERP system, open-sourced ERP solution offered by Odoo is considered highly competitive.
- Scalability – Another benefit of using Odoo is, you can scale the system with your growth. This means you won’t have to buy multiple versions as your business grows, rather you can optimize the one you have, this also reduces the cost of data migration.
- Comprehensive Control over Customization – The last best thing about the Odoo is, its customization. Since you only get the code, therefore by consulting the right Odoo consultant you can develop a unique solution that offers solutions to your every business need.
Read More: Odoo Customization, Why You Should Opt For Certified Odoo Consultant & Partners
What Makes Odoo The Best Open-Sourced Solution
To the question of what makes Odoo the best ERP solution despite being open source, here is a brief answer. Odoo has over a thousand Odoo partners that are working worldwide and Odoo also has a community of Certified Odoo developers, to whom you can reach out to minor and major Odoo customization problems. In addition to this, Odoo has dozens of in-build applications that one can integrate with the Odoo. On the other hand, if you don’t the application offered by Odoo then you get your preferred application integrated with your system. Lastly, Odoo ERP is being used by thousands of enterprises worldwide, and simultaneously, thousands of Odoo Partners are offering competitive prices for ERP customization. This means you can mix and match your needs, evaluate the expertise of Odoo specialists and select the one that offers you the right services at the right prices.
Conclusion
Often people confuse open-sourced ERP solutions with closed sources. The basic thing that you need to know about these two is, the prior one is usually licensed free and you can customize the ERP solution to match your business need from scratch. However, the closed-sourced ERP doesn’t offer such liberty to the buyer. In addition to this, open-sourced ERP is developed by crowdsourcing, this means the growth of a system is dependent on the developer community and you can reach out to the Odoo Community for quick assistance and problem resolution. Unlike closed source, you won’t have to invest much in hardware maintenance since Odoo is cloud-based.
To know more about Odoo ERP implementation, customization, and after-service support reach out to Techloyce.
