ERP and the perspectives for small IT companies

Many often I read in the big new sites how open source is changing the game for the big industry players. However, it is also changing the game for small players, those that mainly build the local economies in many countries.

Only Spain there are about 1.000 ERP alike business solutions. Most of them are for SME, proprietary software and focused on specific business sectors. The situation is, as far as I know, very similar for many European countries. Dozens of small IT companies developed their business applications that usually sell to a reduced number of local costumers that rank from DVD renting shops to hardware stores.

But this reality has been changing in the last few years. Microsoft Dynamics (Axapta) is taking the space of many of these applications and small IT vendors. Microsoft also has local joint ventures, they have on in Lleida for example, that work building vertical solutions. They are even getting in narrow market niches.

All the markets that mature trend to concentration, and in a few years, there are only going to be a few players left. Sage Group, a large proprietary software vendor, has been joining forces with other proprietary vendors in the last few years. And SAP (that bought Factory Logic) has already spent a billion dollars trying to set up a business SaaS solution focused for SME. Too many big guys looking at a very fragmented marked. Someone is going to get hurt.

ERP industry has been little innovative in the recent years. Open source, that empowers users and developers, may change this letting people from local companies, that know their local business environment very well, leverage their previous experience and innovate with new features and use cases.

What is the future for the small IT companies used to build and sell their home grow solutions? They have two options. Choose the blue pill and become a Microsoft or other proprietary partner or take the red pill and embrace an open solution. Taking the red pill you are going to be able to build your own vertical solutions in the already existant open source business stack of applications, be open standards, be cost effective (licenses are 30% of the cost of ERP proprietary solutions), choose which technologies you want to work with, and more important, have access to the knowledge (in form of source code and other resources) that allows you excel in selling your open source business solutions.

More than 50 companies around the world are already trusting Openbravo to install and deploy ERP based on open source solutions and the number keeps growing every month. Do not let your platform limit your freedom and possibilities.

Tags: OSA, Openbravo

jordi Tuesday 17 April 2007 - 10:11 am | | Default

two comments

muzzol

no conec openbravo, però he gestionat la migració d’una petita empresa a linux i el producte clau era el sistema de gestió/financiació/contabilitat. vaig començar contactant amb la gent de facturlinex i em va decebre molt, basta donar una ullada als seus foros per veure la poca serietat d’aquesta gent.

finalment hem optat per facturalux i estic molt content del tracte rebut i de les possibilitats del producte. vàrem haver de contractar hores per adaptar unes quantes coses, i tot el procés ha sigut molt positiu, encara que no sense entrebancs.

algun dia explicaré amb més detall tota la història.

muzzol, (Email ) (URL) - 17-04-’07 14:00
Jordi Mas

En el programari lliure on ens ingressos es fan a través de serveis (formació, consultoria, suport) és importantissim que aquests siguin de qualitat perquè és que la gent paga. D’històries de gent que és poc professional es troben a tots llocs. L’avantatge és que el programari lliure et permet canviar de proveïdor si aquest no et satisfà, amb el programari propietari aquesta opció no existeix.

Salut,

Jordi,

Jordi Mas, - 17-04-’07 14:06
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