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Are "open source CRM" systems really open source?
I read an interesting article claiming that Sugar CRM can no longer be considered an open source CRM software. In your mind, what makes a particular CRM software truly open source? Do the companies that claim to be open source fit that definition?
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7 Answers
Most companies that claim to be open source have two product lines, one that is open source and another that is proprietary.
In general, the open source product is much less functional and is less well maintained or supported than the proprietary product.
The goal of the open source product is to generate free publicity and get customers hooked on their technology. Many then find that they need to upgrade to the proprietary version at a cost that may be higher than other proprietary products.
So are the these companies "open source"? Well, on the one hand, they really do have an open-source offering. On the other, they are certainly not following the 'open source business model' of giving away the software and just charging for services. It really depends upon your definition and why you are looking for an open-source solution.
Most people choose open-source software because it is free. This is reasonable, but you should bear in mind that with CRM, the cost of customizing the software, training your users and maintaining the system may far exceed the cost of the software itself. A better business metric is therefore the TCO, not the initial software cost.
Another reason is that they may wish to obtain access to the source code to fix bugs or take over maintenance if the provider goes under. This is an interesting point, but these packages typically contain millions of lines of code and only the largest organizations can afford the developer resources to maintain them. Further, you may be able to obtain source code access or at least get the software placed in escrow for a proprietary product.
A third reason is that some people strongly believe that all software should be open-source and will not consider anything else. I consider this to be a matter of faith and beyond the realm of business oriented discussion.
If you are considering buying a CRM system, I recommend the process described at http://www.focus.com/ugr/research/crm/how-pick-right-crm-helpdesk-bpm-vendor/ It is equally applicable to open-source and proprietary products.
As an employee of the leading open source CRM solution - SugarCRM - I can say that yes, we are in fact an "open source CRM." The confusion lies in the history of open source and the misconceptions around the evolution of the free software movement.
Rather than re-hash a lot of misconceptions - I will let our CEO (and one of the members of the team that coined the term "open source") explain it - with a link to a great post on my blog by Larry Augustin:
http://www.crmoutsiders.com/2010/07/15/some-thoughts-on-open-from-sugarcrm-ce...
Simply put - SugarCRM and other commercial open source applications are designed to meet the needs of businesses seeking AGPL (or some other OS licensed code) solutions, as well as meet the needs of businesses seeking software solutions that provide access to source code, without having to redistribute code.
Just my $.02
-Martin
Simon - good points all the way around.
My company is an xTuple ERP Development Partner. xTuple is an open source erp solution that fits the model you discussed. There is a totally free version known as PostBooks that includes the complete CRM functionality of all the licensed versions of the product. We make money selling services along with selling the licensed versions. Most companies can meet their needs with PostBooks, but advanced MRP, multiple site or lot/serial control are some of the requirements that are addressed through a licensed version. In a sense we may be "hooking" a company on our technology, but its reassuring to know that if your requirements grow you can simply migrate to a licensed version.
In keeping with the open source philosophy all the pricing is readily available on our website and you don't have to identify yourself or otherwise request the information - its right there under pricing and typically priced less than comparable proprietary solutions. http://bit.ly/xTuple_pricing
Specific to the CRM question, xTuple's CRM functionality was recently listed 4th in the top 10 open source CRM list. http://bit.ly/dcb50P While you may not want or need the additional functionality of accounting, sales, inventory, etc. the compete CRM functionality is included in the totally free open source PostBooks version, and there are many companies simply using PostBooks for CRM.
Do you get all the CRM functionality? Check. Is it free? Check. Is the database free? Check (PostgreSQL). Do you get the source code? Check. Is there a free world-wide user support community? Check
That would be my definition of an open source CRM.
Open source software of any type needs a critical mass of developers, users, etc. to make a viable product and community. In order to reach this critical mass, the software needs to be good enough for people to use. This means either a small group of developers working in their free time, or a paid group with some sort of funding.
In general, free work only takes you so far. So to keep the open source project going, you need some sort of business model. Either you can give away part of the software and sell part, or give it all away and sell professional services (or of course some hybrid of these models, like SugarCRM has).
I've worked quite a bit with SugarCRM and the free version is a fine starting point for lots of projects. It's especially good for showing to end-users and helping them decide what they really want. The module builder is simple for most people to add fields and change labels to fit your business. You can then get developers to add things for you (there are lots of good overseas SugarCRM developers), or upgrade to paid versions of SugarCRM.
What you need to decide (perhaps after a pilot project, but before committing major resources) is what your organization's software development is for a CRM project. If you are willing to have on-staff developers, your way forward will be different than if you expect a turnkey solution from a solution provider.
One more aspect I would like to add is that the spirit of Open Source is also one of extension. In other words, Open Source offers a company like SugarCRM the ability to have localized versions of their product initially developed and to have a growing number of 3rd party "extension" applications developed. These applications extend the breadth and capabilities of the application quicker and more efficiently than a licensed model ever could.
Many of the 3rd party extension applications start life as Open Source code that is shared and improved upon. This is the real value of Open Source and why Open Source CRM like SugarCRM drives innovation.
"Sugar Professional Edition and Enterprise Edition are distributed under a commercial license" ... Larry Augustin .... http://www.crmoutsiders.com/2010/07/15/some-thoughts-on-open-from-sugarcrm-ce...
So, SugarCRM is not an Open Source company. It is a proprietary software company with an Open Source offering (and a damned good one at that).
There are threats as well as opportunities with the proprietary versions of SugarCRM. See my blog here: http://salesagility.com/index.php/open-source-crm-blog.html
I concur with Simon when he says that most Open source business models have a open source(with limited features) model and a proprietary version where you have to pay for the enhancement. At OpenERP though we have decided not to follow this philosophy. Our CEO Fabien Pinckaers recent post (Free as in Freedom, not free as in Free services http://bit.ly/cFTK5f ) which was on this very similar lines. Every organisation has their own business model and revenue sources and it is not fair but to say that one is open and the other is not.
But under ideal conditions(and licensed environments) the model is when you provide the source code of everything you derive from your desk with the partners and the community
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