Difference of Opensource ERP and Proprietary ERP

We all know ERP is not just a simple software, Which is a complex solution for businesses and enterprises. The software that a company chooses is a matter of concern when it comes to running complex business operations since software preference is what ultimately undermines business performance. When compared to small and medium enterprises, this decision is more challenging because of the budget and cost-effective design.

There are various ERP solutions available in the market. Microsoft Dynamics, SAP, ERPNext, Tally, Odoo ERP..etc. The list has not an end. When we plan to choose/implement an ERP for our business system, we have to think twice and consider more things.

One key point for small and medium-sized businesses is the local and cloud hosting decision. Cloud-enabled ERP provides various advantages for small and medium-sized businesses compared to traditional/conventional ERP hosted on a local server. One of those essential benefits is the element of adaptability and versatility. When the decision statement over to conclude cloud or traditional ERP, the next part to consider for proprietary and opensource ERP. Both licensed and opensource have cons and pros.

Comparison:Opensource ERP:

1. Active Community: Regular security updates and bug fixes. community helps to find a solution
2. Lower cost of Ownership: Only capital expense for customization and implementation. Zero cost License Fee.
3. Minimal Reliance: Open source is flexible, distributed, and has a dynamic group that operates on it, thereby reducing dependence on a single supplier. Therefore, it erases the fear of orphaned goods, the loss of sellers, and the cessation of assistance.
4. Open Standard: The community keeps to open standards when it comes to data formats and communication. This makes a highly interoperable open source.

Proprietary ERP:

1. No Active Community: Comparing to opensource, Regular security updates and bug fixes takes a long time. The quick solution for the problem is limited.
2. Higher Cost of Ownership: Operational expenses would include mainly licensing fees, and capital expenditure, in addition to the sunken maintenance and service costs.
3. Higher Dependency: Users of proprietary applications are more or less at the vendor's mercy. Additionally, once the program is incorporated into the business system, changing vendors will possibly be a costly process
4. Opacity: Users can neither modify nor debug the closed source ERP. You'd be able to report errors and dump stacks to vendors but you'll have to wait to get them repaired.

Odoo / OpenERP is a comprehensive suite of business applications including Sales, CRM, Project management, Warehouse management, Manufacturing, Financial Management, and Human Resources just to name a few. Odoo / OpenERP offers a choice of over a thousand modules. Odoo / OpenERP is available in the cloud or on-site and is most suited for small to mid-sized companies. With more than a thousand downloads/installations per day, Odoo / OpenERP is one of the most used open-source solutions in the world. It has a dynamic community, is flexible, and can be adapted to your needs. It can be put in production rapidly thanks to its modularity and is easy to use. Also Odoo contains an App store that includes 15000+ apps modules. Microsoft Dynamics, SAP, ERPNext...etc are Proprietary ERP software. When compared to Proprietary ERP software, the Price of odoo implementation is average.

Kevin John is a leading tech blogger generally featuring various Erps and business automation software. He recently focused his attention on Odoo Erp and various aspects of the software in the business.