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Is open source ERP the same as free ERP?
What are my options for finding a free ERP system? Does open source mean free?
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6 Answers
Hi Christy,
For the most part "open source" ERP and "free" ERP are not the same thing.
In the software space the term, "open source," refers to the fact that system's source code is accessible to anyone. This allows for tighter customization for business needs, and the development of third party applications to tie into the system. Most open source software systems are free, but be aware that there are some systems that are offered for free that are not open source.
The advantage of an open source system from the perspective of a business owner is that it is often a more cost effective option. One can obtain the basic system for a low cost, and then simply hire an IT person to come in and make changes to the code ultimately customizing the system to meet the needs of the business.
Unfortunately I do not have any solid recommendations for free ERP vendors as I typically work within the CRM space. I do know that Compiere boasts open source ERP and CRM solutions along with Opentaps, so this might be a good starting point for you.
Best of luck!
Just my 2 cents... and I suspect that others will agree... Be wary of the lure of source code that is modifiable. I won't go long here - just suffice it to say that once you modify any program's code, you've crossed the boundary regarding who will/can help you, and what the arrangements will be. Modified code can be appealing early on, but can easily turn into an expensive quagmire when it's time to upgrade. (Now this concept is totally different that simply changing settings or creating custom reports that can often be easily migrated/upgraded to a new version.)
Finally, free software has an obvious advantage on the front-end, but software publishers have to eat too. Unless they're making money in other ways, be careful.
No open source ERP is not free ERP. I don't work in that space, but most open source vendors have a "free" program, but the enterprise systems usally come with some price. However it is much lower than any ERP vendor.
Also, just because the code is free, nothing else is. You still have to have people install it, do the data transfer from the old system, do training, etc.
So no its not free.
Hey Christy,
Yes there is "free" open source ERP in the sense that there is no license fee. You can download for free open source PostBooks from xTuple. This is a complete package of client, database and report writer. The download version comes configured for a single user, but you can find the instructions to make it multiple user at www.xtuple.org - where you will also find a robust community for tips and advice.
PostBooks has limitations (single company, single site) and for your requirements you may need a licensed version. So you'll want to look at what each of the editions has to offer.
ERP is a complex animal and depending on your background and experience (and maybe how much your time is worth) you might be able to install, configure and implement the application without any outside (here's where free goes away) help. Otherwise you would engage one of xTuple's solution providers for assistance.
Of course the reason you implement ERP is to make your business more efficient - meaning you reduce your costs as a percentage of your revenue, so any ERP should be "free" because you are recovering the cost through increased profitability.
An advantage open source ERP has of over proprietary solutions is that the initial license is far less and the implementation and support are also less - so getting to your break-even point is that much easier.
And remember you will want a some one to stand behind you in the future, so selecting an open source ERP solution that has a stable company and implementation provider network supporting it is critical.
Hope that helps
Christy,
Sorry all that and left out our website. So please visit us for more information, a demo or to download PostBooks. www.opensurgegroup.com
There is a lot of confusion out there over this. Open source means that the "source code" is open or available to anyone. It is really just a philosophy for developing and enhancing software. Many systems were developed this way. Familiar examples would be Linux, or the internet itself. There are thousands of others.
"Free" could refer to freedom, or lack of restrictions, or it could be referring to the cost. In reality, there aren't any systems that are "no cost" since there is always labour involved which could be internal or external, and should be considered as part of "total cost of ownership". Having said all that, you really should look at all factors when doing comparisons, like fitness for a particular purpose, flexibility, control, support, risk etc. in addition to cost. All of this depends on your needs, since everyone is in a different situation.
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