Reasons for choosing open source ERP for small and mid-size businesses

Author: Bit Software
Date: 18- 04- 2011

reasons for choosing open source ERP

Few years ago, only large companies needed ERP software. Now, it can benefit form this technology even the small and mid-size businesses. In a recent article published on erpsoftwareblog, Jeff Pyden stated that the cloud computing technology is faster adopted by businesses with no more than 50 employees. In his opinion, „the emergence of the cloud is yet another step toward making this powerful technology available to those who otherwise may not be able to afford it.”

He indicated five reasons why small and mid-size businesses prefer a cloud ERP solution rather than a traditional one: limited budgets, faster deployment, security and data management, businesses continuity, growth and scale.

The first indicated reason - limited budgets - refers to the total costs of implementing and maintaining an on-premise ERP solution, which „is often not feasible for small businesses”. „It’s difficult for many small and mid-sized businesses to afford the up-front costs of an on-premise ERP solution”, Jeff said. But what is the option? An open source ERP, of course. For example, the total cost of implementation and use of our open source solution, SocrateOpen, is less than the on-premise version.

The faster deployment refers to the fact that „a cloud-hosted ERP solution can be deployed quickly, allowing businesses to start reaping the benefits of the solution sooner”. By streamlining and connecting internal processes, such as finance, sales, marketing, invoicing and others, „organizations can work more efficiently and gain a competitive edge from the beginning”.

In terms of business continuity, with an ERP system in the cloud, „it’s easier to get back up and running after unforeseen interruptions”, said Pyden. In other words, it’s important to consider a solution that is accessible via the cloud, because you will be able to recover data more quickly than from a physical database.

Finally, the „growth and scale” reason refers to changes that occur in a business lifetime, which can becomes larger or fluctuate in size, and in this case the „cloud-based applications can easily scale to accommodate growth”. This means that users can quickly be added or removed as needed.

The conclusion is that the ERP in the cloud is good for small and mid-size organizations, cause „cloud-based applications can provide fundamental business services to young companies at a fraction of the cost”.