The trend of Open Source ERP popularity is growing fast due to the benefits it provides. It eliminates the initial hefty license fees and the following modification fees thereafter. However, there are more reasons for open source ERP popularity. It brings down the costs by eliminating the dependence on the vendor. Since ERP implementation involves a lot of effort and money, it involves an important mention in the company's budget. It decrees the expenses by providing free cost cost source code and programs. Since the source code is available, the dependency on the vendor is reduced as the source code is taken as a guide. The vendor may be called upon only when required for extreme situations. Too much vendor intervention can cause clashes between the vendor and the company leading to further problems.
Open Source ERP software popularity has increased due to its ease of use. It can handle all the functions with ease and therefore small companies go in for this type of ERP software. This is more flexible as the required codes can be selected and the rest ignored. Also the training required for open source ERP is very less and the security issues are less. The required upgrades can be made by any programmer irrespective of the finances and business affiliations. Due to its advantages, many companies are turning towards this type of ERP to eliminate the drawbacks of licensing, version upgrades and maintenance costs. It can offer customized solution according to the actual requirements of the customer.
Few of the open source packages are Compiere, GNUs, SQL Ledger, Tiny ERP, etc which offer features to design the software. Most of the small and medium scale companies are implementing this because of its low cost and flexibility. These companies can not afford the traditional server ERP system as it is very cost and beyond their budget. Many packages have been developed to cater to the needs of small businesses. The company can pick one of the packages according to its business requirements as each package is different.
The cost factor is mainly responsible for the open source ERP popularity as one can easily download it without costs. Normally no hidden costs are involved and it does not take very long to implement it. As small companies undergo many changes in their developing phases, they require a flexible application that can be scalable according to the growth of the company. Open source offers this feature and can be fitted into any type of business environment.
A delay in production and delivery may arise in the traditional way of implementation by causing delays due to requirement of vendor services every time. In open source ERP, the source code is available and the company can alter the application the way it wants. Also a team is not required to manage open source ERP software and no annual maintenance cost is required. Resources are not needed to maintain the application and so all these features have helped open source ERP popularity in the market.