ERP Software

Is Open Source the Answer?

Open source ERP or Enterprise Resource Planning solutions are on the rise.  However, if you take all the companies in the world with an Enterprise Resource Planning solution and count the ones with an open source ERP solution, you will not have to count very high.  As technology evolves and more companies acquire open source Enterprise Resource Planning solutions, it is likely that we will see more and more businesses opting for this type of Enterprise Resource Planning system.  We all like to see someone else “give it a successful go” before we try.  And, this is what seems to be the case with open source Enterprise Resource Planning solutions.  Everyone is waiting around to see how open source ERP solutions work for someone else.  The bravest companies that are currently adopting open source ERP solutions are those companies that have already taken it upon themselves to customize the heck out of their existing proprietary software.  These companies feel comfortable and have the staff to customize an open source ERP solution to suit their needs.  However, not all companies have the staff or the courage to take a chance with an open source ERP solution.  If fact, many companies hire the Enterprise Resource Planning vendor for system maintenance and technical support issues. This way the Enterprise Resource Planning vendor holds their hands so to speak.  Large companies typically welcome this hand holding, which is understandable when you have thousands of employees.  Small companies are typically more set up to take on an open source ERP solution.  Small companies typically have less capital than large companies so an open source Enterprise Resource Planning solution fits the bill.  If executives at a large company select an open source ERP solution and the project fails miserably, their jobs may be on the line.  The way to play it safe may just be to stick with a proprietary supported Enterprise Resource Planning solution. 
Approximately twelve percent of Enterprise Resource Planning customers in the United States are using an open source ERP solution.  This number is predicted to increase by a few percent over the next year.  And, this prediction seems quite plausible considering the state of our present economy.  It will be interesting to see what happens in the Enterprise Resource Planning world as we embark on the year 2011.

Written by :

kristine H