9 Advantages of using Open-Source ERP
9 Advantages of Using Open-Source ERP
Productivity is important for any company’s success. Higher productivity equals higher performance, and this is a tried-and-true strategy to out-perform the competition. ERP systems enable businesses to acquire a more comprehensive view of their operations. When it comes to purchasing and maintaining an ERP system, businesses generally get confused when it comes to choosing the right one. Most companies prefer open-source ERP systems because they provide greater control and flexibility than proprietary software.
Here’s a rundown of the most important benefits you’ll get as a company if you adopt open-source ERP.
- Eliminate the Pricey Licensing Process–
Open-source ERP systems are developed by a community, yet they accept input from organizations and people all over the world. Whereas traditional ERP systems enable only company-approved developers and do not allow off-the-shelf development, making it expensive for businesses to obtain a license. The Open-source ERP offers complete license rights to any person or organization who downloads and installs a system. This normally comes at no cost, and there are no recurring fees for upgrades or renewals.
- Minimum Cost to Deploy and Manage-
The cost of ownership of an open-source system is almost half that of commercial solutions when you include all the costs related to implementation, licensing, support, and customization. They are not just less expensive in an enterprise environment for similar or higher capacity, but also allow businesses to start small and expand quickly. Given that organizations are frequently budget-constrained, it simply makes more sense to explore open-source ERP.
- Withstand Variations-
The nature of each firm is unique, as is the functioning inside the business, so how can a conventional ERP operate well for every organization? Using a standard ERP system necessitates that the firm modifies its processes to accommodate the ERP system’s functionality. The major advantage of using open-source ERP is that it can be quickly customized to match the demands of the firm. You can quickly update the ERP with customizations as the processes in the firm change with expansion. Open-source ERP not only helps organizations expand but also evolves with them.
- Hosting Options-
Instead of forcing clients to use cloud-based ERP, Open-source ERP gives them the option of using both on-premise and cloud hosting. Open-source ERP can be self-hosted, which means it can be installed on the client’s own infrastructure or on a cloud-based server. It enables organizations to select the most appropriate hosting for their ERP system with ease.
- Vendor Lock-in Savior-
For businesses that use proprietary software, vendor lock-in is a common issue. Problems arise when firms are unable to switch to a different vendor without incurring significant costs or disrupting their operations. Growing organizations are especially vulnerable to vendor lock-in because the out-of-the-box solutions that made sense for them when they started out no longer work for them as their business expands. In such a case, there is only one solution: open-source ERP. Many businesses that have been entrapped in vendor lock-in have switched to open-source ERP.
- Developed Resources from the Community-
Users of open-source ERP have immediate access to the huge resources of their user and development communities. This can contain program modules to enhance functionality, code snippets, and the ability to share or exchange ideas and resources with others in the community. The Open-source ERP community can act as a talent pool for programmers and operators who can help enterprise clients with technical assistance or system maintenance.
- Protection, Upgrades, and Upkeep-
For upgrades, security patches, and system maintenance, businesses that employ proprietary software must rely on the program manufacturer or vendor. An open-source ERP system, on the other hand, puts the control of the platform’s update, maintenance, and security management in the hands of the users. The user can use their in-house IT expertise or project communities as a resource.
- More Scalability and Flexibility –
Adopting an ERP system is a major financial and resource investment, particularly for mid-size and small organizations. Businesses with access to the source code, on the other hand, can easily alter and scale in an open-source ERP. Businesses must utilize ERP that not only addresses current business demands but also future business needs, and open-source ERP meets all of these criteria.
- More Agility to the Business-
Open-source ERP increases technological agility by providing multiple solutions to problems. Open-source prevents your firm from being stuck because a specific capability isn’t accessible from a developer. Rather than waiting for them to provide that feature, you can build it yourself.
Understanding the advantages of open-source ERP helped companies in making the switch from their legacy system, and they are now reaping the benefits. Open-source ERP is the way of the future. Web, mobile, and cloud solutions are increasingly being built on open source platforms. Learn how our expert developers and support teams can assist you in migrating from proprietary vendors to open-source software, as well as in selecting the database, platform, and solution that best meets your needs. Contact us today.