Click here to close now.

Welcome!

Cloud Expo Authors: Kevin Jackson, Harry Trott, Bart Copeland, Lori MacVittie, Ruxit Blog

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.


@CloudExpo Stories
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The IoT market is projected to be $1.9 trillion tidal wave that’s bigger than the combined market for smartphones, tablets and PCs. While IoT is widely discussed, what not being talked about are the monetization opportunities that are created from ubiquitous connectivity and the ensuing avalanche of data. While we cannot foresee every service that the IoT will enable, we should future-proof operations by preparing to monetize them with extremely agile systems.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and ot...
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...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
RingCentral Inc., has unveiled the RingCentral Connect Platform™, a set of tools and services to build, deploy, and manage custom integrations using RingCentral APIs. With this platform, developers can build out-of-the-box integrations with RingCentral to add powerful communication capabilities to business applications. "This is a significant step forward because businesses want to better connect with customers – and communications is at the heart of every customer interaction," said Vlad Shm...
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.
There has been a lot of discussion recently in the DevOps space over whether there is a unique form of DevOps for large enterprises or is it just vendors looking to sell services and tools. In his session at DevOps Summit, Chris Riley, a technologist, discussed whether Enterprise DevOps is a unique species or not. What makes DevOps adoption in the enterprise unique or what doesn’t? Unique or not, what does this mean for adopting DevOps in enterprise size organizations? He also explored differe...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
NaviSite, Inc., a Time Warner Cable company, has opened a new enterprise-class data center located in Santa Clara, California. The new data center will enable NaviSite to meet growing demands for its enterprise-class Cloud and Managed Services from existing and new customers. This facility, which is owned by data center solution provider Digital Realty, will join NaviSite’s fabric of nine existing data centers across the U.S. and U.K., all of which are designed to provide a resilient, secure, hi...
SYS-CON Events announced today that Intelligent Systems Services 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. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
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 sc...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for applica...
The excitement around the possibilities enabled by Big Data is being tempered by the daunting task of feeding the analytics engines with high quality data on a continuous basis. As the once distinct fields of data integration and data management increasingly converge, cloud-based data solutions providers have emerged that can buffer your organization from the complexities of this continuous data cleansing and management so that you’re free to focus on the end goal: actionable insight.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics arc...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...