What was declared a coming trend a few years ago is now history. Open source ERP has not been able to assert itself despite the glorious future it was believed to have. Lack of functionality and high customisation costs are reasons for the low level of success.
Open source - a model for success outside the ERP world
Open source is a term that in IT tends to be associated with office applications and operating systems such as Linux, Open Office and Mozilla. But not with ERP systems. A few solutions offer the open source alternative - in other words, an ERP system that is open source, not subject to any user restrictions and can be modified. Otherwise, there are at most add-ons for the software, for example as CRM-Module.
Open source ERP is not accepted
But why is this form of ERP an option for so few?
On the one hand, it is due to the Complexity of the ERP systems. The high time expenditure and the many years of experience with softwareProgramming have been a major component of a good ERP solution. Open source solutions do not yet come close to the functionality and quality of the systems of this "older generation". This is why most users rely on other systems, as the smooth running of ERP is essential for the success of the company.
Higher costs for customisation
Another reason for the limited success of open source solutions is the high Adjustment effort. To create a Open Source ERP can be used by a company, major customisations are often required. As the time required to have the necessary customisations carried out by the company's own IT department is too high, an external software service provider must be commissioned. This in turn results in high Costs. This is why most companies opt for a standardised industry solution. Customisation is kept to a minimum, the function of the ERP is guaranteed by the provider and the management is not dependent on the knowledge of its own IT department.
No allies for open source ERP
An important role in the failure story of open source ERP is played by the Lack of sponsors of this ERP option.
A large number of the successful projects were launched as a counter to the dominant software providers. The open source projects were supported by large corporations that wanted to reduce their dependency on the providers. Oracle, for example, promoted Linux, in order to gain market sovereignty from Microsoft in the area of operating systems and office applications. Google is supporting Mozilla, for example, in order to Search engine to spread.
In the field of ERP systems, small and medium-sized software companies are competing with market leaders such as SAP or Microsoft. This eliminates the need to support open source projects in order to promote independence from the providers.
No major differences in the sales models
As "free" ERP software is generally licence-free, the providers earn their money through services such as software implementation, Customization, training or support. In addition, the open source providers Maintenance costs required. However, the more popular providers of free ERP software are orientated towards the sales models of standard solutions. This means that licence and maintenance costs are charged. However, these open source providers that charge licence fees usually also contractually guarantee the solution, as is the case with "normal" solutions. ERP software usual. If this is not guaranteed, these costs are not incurred, although this entails many risks for the company's success. Ultimately, the costs incurred for an ERP system whose function is guaranteed hardly differ - whether it is a "non-free" or "open source" system.
Conclusion
Due to a lack of quality and performance, a high need for customisation and little support from the upper echelons, open-source ERP solutions will continue to play only a minor role in the business software sector. The few manufacturers will probably only be able to make a name for themselves on the ERP software market with individual components or isolated solutions. Despite the predicted success, the risk of freedom with an open source ERP solution is too high for most companies. In addition, there is still plenty of room for improvement in terms of functionality and performance.
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