Click here to close now.

Welcome!

Open Source Authors: Irit Gillath, Pat Romanski, Carmen Gonzalez, XebiaLabs Blog, Glenn Rossman

Related Topics: Open Source, Java, SOA & WOA, Cloud Expo, Apache, Security

Open Source: Article

Five Pitfalls to Avoid with Open Source ERP

Do you want your ERP system to be a hobby and passion

Don't you just love spending millions of dollars to license a commercial ERP package? And then I bet you feel warm and fuzzy about hiring a bus-load of expensive consultants to come and tell you how to run your own business, following so-called ‘best practices' built into an inflexible ERP package. And just when you thought you were going to realize all the benefits of ‘off-the-shelf' software, you find you have thousands of lines of custom code lashing together old systems you didn't dare remove, third-party bolt-on solutions to plug gaps in the ERP software vendor's package, and customized reports, forms and enhancements no-one ever thought someone in your industry could ever need.

Open Source - an Escape from the Commercial ERP software Nightmare?
Then along comes open-source ERP. Kudos to OpenBravo, Compiere/Consona, OpenERP, xTuple, opentaps etc.

Open source (for those who don't already know) means that you get free software, you can extend and modify the source code, you pay no license or maintenance, and you don't need an army of external consultants. Amazing! Too good to be true!

Er, actually, it is too good to be true. Open source ERP is great for some people, but not for everyone. Here's why.

Five Pitfalls to avoid with Open Source ERP

  1. Open source ERP systems were often built on a shoe-string budget and, despite their commercial advantage, sometimes the number of active customers (not downloads) is in double digits. That means 25-100 other companies before you who have tried and tested the software. Not the tens of thousands of companies who have experienced the joys and pains of a top-tier commercial ERP system like SAP, Oracle or Microsoft Dynamics.
  2. Support is not included in the free software option. So if you encounter a bug (and based on the limited number of active users, you are quite likely to) then you are on your own. Of course all open source ERP vendors offer a support option, at a cost. At a minimum you need this and it should be the basis of any budget comparison.
  3. Most ERP open source software vendors now offer a basic version which is open source, and a version with "bells and whistles" on a paid basis. Compiere started this trend by updating their user interface to web-technology and then charging money for it. Hang on a minute - if the bell or whistle is so important, then how can you do without it? Is the open source version really useful without these bells and whistles? Is the difference in the free vs. paid version going to get bigger or smaller over time? Sorry to burst your bubble, but I have not yet found an open source ERP vendor that is a registered not-for-profit charity. They are in business to make money, and one sure-fire way to make money is to charge for things like features that you probably, honestly speaking, need.
  4. Open source by definition allows customers, partners and ex-employees to take the source code and turn it into a new offering. Sometimes the new open source package addresses a number of gaps in the earlier package; sometimes the author of the new package is greedy and wants to make a fast-buck without writing their own system, or sometimes the new system results from a personality conflict. Either way, it means that your ERP vendor might not have actually written the open source ERP package they claim to be expert in, or perhaps not all of it.
  5. Open source ERP vendors are not making much money. No profits must mean lower prices, so a great deal for the customer, right? Wrong. The one thing you need out of your ERP vendor is for them to stick around. You are literally betting your business on their software application and you are going to need to rely on them for years, maybe even decades to come. The last thing you want is your ERP vendor to go out of business, be acquired by another ERP vendor (who you can bet will slash future development on their step-child) or decide to invest their time and energy pursuing something else.

Open Source ERP Is Not for Everyone
To be fair, open source ERP is great for some people. There are many happy customers using open source ERP. Most of them have bright and tech-savvy staff on hand who are not just willing, but even relish the idea of rolling up their sleeves and fixing bugs or designing enhancements. That's why open source users are so vocal on forums as compared to commercial software users. They are the pioneers on the front-line of new technologies, blazing the trail of open source ERP adoption and adaptation. And they're proud of it.

Are you that kind of company? Or are you in business to do something else, like, er, what you set up your business for in the first place?

The Community to Complexity Conundrum
Some open source software is spectacularly successful, Java itself being the poster-child. Go to sourceforge.net and you will find tens of thousands of cool open source applications, downloaded millions of times every day. Here is an important factor to consider: community to complexity. It works as follows: The most successful open source software has a huge community in proportion to its complexity.

For example, open source software like Java, which started out life as a simple language became huge purely because of the community. On the other end of the spectrum, ERP is arguably one of the most complicated enterprise software applications imaginable ....but because it is so specialized it simply does not have the community large enough to match its complexity.

Some technology leaders bend this rule by investing millions of dollars into their own open source offerings to gain traction, such as what Sun did with Java or Google with Android. Open source ERP vendors don't have the funds to do this so they must rely on their small community battling with a hugely complex open-source set of applications.

Is Your ERP a Hobby or a Tool?
So the take-away is this: Do you want your ERP system to be a hobby and passion, or something that just works in the background? Do you want to get into the nuts and bolts of the package or get something that is easy for non-tech savvy subject matter experts to deploy and use?

More Stories By Richard Minney

Richard Minney is co-founder of iBE.net,, a developer of business management software for SMEs. He has nearly 20 years of ERP experience as a developer, consultant and project manager. Previously he was executive VP for Product Innovation at HCL-Axon, responsible for the company's successful ERP add-on solutions business. Before that, he was co-founder of Feanix, a $20m SAP systems integrator with clients like Sikorsky Aircraft and Pratt & Whitney. He spent nine years at U.K.-based Druid Group plc, building SAP’s first industry add-on solution for aerospace and defense. He began his career at Ford and Rolls-Royce. He has a Masters in computer integrated manufacturing from Cranfield University, and a MA in engineering from University of Cambridge, Oxford. You can reach him at [email protected]

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The cloud is now a fact of life but generating recurring revenues that are driven by solutions and services on a consumption model have been hard to implement, until now. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss how a top European telco has leveraged the innovative recurring revenue generating capability of the consumption cloud to enable a unique cloud monetization model to drive results.
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from mere Big Data to smart data. He will argue that today’s hybrid cloud storage solutions, with commodity...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...