Open Source ERP popularity is raising due to the many benefits it provides as compared to the commercial ERP. Benefits come from its communal intelligence. The required upgrades can be performed by any programmer irrespective of the business affiliation and finances. Many companies are opting for Open Source ERP to avoid the disadvantages and limitations of the commercial ERP. Open Source solves problems like forceful version upgrades, high licensing fees, high maintenance costs and others. It is more flexible and therefore preferred nowadays. This concept has done away with the license fees and this has been one of the reasons of ERP popularity.
Some of the reasons of Open Source ERP popularity are as below:
1. Reduced costs: Implemented of Enterprise Resource Planning system requires a lot of investment and time. A major budget has to be planned and kept aside for the ERP implementation. With open source ERP, these costs have considerably reduced. There are no hefty license fees to be paid and the source code of the software is also available. With the availability of the codes, modifications become easier.
2. Reduced Dependence on Vendor: This is another reason for Open Source ERP popularity as the vendor dependence is reduced. The source codes of the software are available which makes it easy for the organization. It can make the necessary modifications and alterations required on its own without depending on the vendor. The source code is like a guide for the company and it reduces the clashes between the vendor and the company.
3. Ease of Use: Open Source Enterprise Resource Planning technology is easy to use and understand. It handles the functions easily thereby making it easy for the small companies to implement ERP. It is also beneficial for people from the same industries.
4. Flexibility: This ERP popularity has increased because of its flexibility. Open source ERP makes it possible to select the ERP codes according to the needs for partial application. The rest of the codes which are not required can be ignored.
5. Training: No formal training is required for running an Open Source ERP application. It can be easily understood and learnt during working else with some orientation program. It is relatively easy and therefore requires no formal training. This is one reason for popularity of this type of ERP.
6. Security: It does not require bringing everything under the public domain making it less risky. And secure.
Open Source ERP popularity has mainly increased due to the fact that the small and medium companies were not able to afford the traditional ERP software. Due to its cost advantage, these companies can now easily download it from the internet. It does not take as much time as the traditional ERP to implement too. There are no delays due to less vendor dependence and the application can be altered by the company itself. One does not have to employ a big team to manage the implementation or to administer it. These are the reasons why this ERP popularity has increased in the market.
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Source by Peter Filinovich