Deceptive freedom : Open Source ERP

What was declared to be a coming trend a few years ago is now already history. Despite the gloriously believed future, open source ERP could not prevail. Lack of functionality and the high adaptation effort are reasons for the low success.

Versino Financial Suite for SAP Business One Finance

Open source - success model 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 - i.e. an ERP system that is open source, is not subject to any user restrictions and can be changed. Otherwise, there are at most supplements for the software, for example as a 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 expenditure of time and the many years of experience with softwareProgramming have so far been a big part of a good ERP solution. The 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 effort for adaptations

Another reason for the low success of open source solutions is the high Adjustment effort. To create a Open Source ERP for a company, major individual adaptations are often still necessary. Since the time required is too high to have the necessary adjustments carried out by the company's own IT department, an external software service provider must be commissioned. This in turn causes high Costs. That is why most companies opt for a standardised industry solution. The adjustments are kept within limits, 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 market-dominating software providers. In the process, the open source projects were supported by large corporations that wanted to reduce their dependencies 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, for example, supports Mozilla in order to strengthen its Search engine to spread.
In the field of ERP systems, small and medium-sized software companies compete 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 distribution models

As "free" ERP software is generally licence-free, 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 poor quality and performance, a high need for customisation and little support from the upper ranks, open-source ERP solutions will continue to play only a small 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 predicted success, the risk of freedom with an open-source ERP solution is too high for most companies. Moreover, there is still a lot of room for improvement in terms of functionality and performance.

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