Why SME’s & SMB are Selecting Open Source ?

Enterprise Resource planning – ERP software used by big organization to manage their business process and to gain competitive edge in the business area. Any ERP software is selected to streamline their internal business processes. But now the focus of an ERP software implementation is changing from big organization to small and mid sized companies or SMB’s. Previously this was not the case with SME’s as any ERP implementation required heavy investment, time, effort money and due to high risks

Today SME’s are implementing ERP  and business software to gain the advantages of a Proper enterprise resource planning tool and this is because of Open source ERP  software available in the market easily with different modules to start with. Open source ERP software is attracting small and medium sized enterprises to implement ERP solution to manage their business. Another part is lots of ERP vendors started implementing ERP solutions for SME & SMB as the market is huge.

Let’s have a look on the most powerful points where SME are opting for Open source ERP solutions for their businesses.

Costing : One of the most important factors affecting SME to opt for Open source ERP software is the cost. As Open source allows you free code and installation and the company doesn’t have to pay heavy software licence fees every year, which was one of the case with the proprietary ERP software. Hence being costing is one of the factor and Open source ERP doesn’t involve any license fees and maintenance cost.

Easy and quick implementation : As being open to the community and lots of implementation material available online it get easy to implement open source ERP  with the help of technical team, SME’s can also opt for vendor implementation options if require.

Flexible: Another important point of selecting Open source ERP  software is the flexibility and customization ability in the tool, which is very difficult with the proprietary software and that too it involves high investment for certain customization.

Freedom: Open source provides you with the freedom, freedom from the vendor locking, freedom from licensing and so on. The source code of the Open source ERP software is with the client where he can modify in further future and can take support from the vendor whenever necessary.

Training and support: The support and bug fixing gets easy as communities are open to help for the bug fixing part; also the training after the implementation is minimal as compare to the Proprietary

We have covered some of the advantages on why SME’s are opting for open source ERP software but there are disadvantages too if not selected properly. It is necessary for an SME to do a proper study of their business processes before selecting Open source ERP package accordingly. There are lots of Open source ERP software available in the market some of them are OpenERP , OpenBravo, Compiere and so on. . Normally open source ERP software are targeted to those companies whose needs are not covered by the normal ERP  software available in the market and organization whose processes are not standard

----------------------------------------------