hi, this is a little rhetoric question to
- a) confirm that for myself before we are getting really into it
- b) to create an entry here that other people can find whether they have the same question
I will answer it myself below as far my understanding goes and hopefully somebody who knows this exactly can either correct me or confirm.
OpenERP is free software. Free as in freedom & free as in gratis
No matter how many users or databases you want to deploy are or what you want to manage with OpenERP you will not (and will never) have to pay license fees to anybody for the sheer usage of the software including all publicly available Modules.
If you need any kind of professional support (what most people & organization will need) or hosting services at any point you can find whomever is capable of providing such services and pay them for these services they provide to you.
Such a service provider could be:
- OpenERP SA
- any of their partners
- any other company or person of your choice
So, the use of the software is free of charge at any time. Whatever you pay it will be a service provided for this Software. And if you need a service or not is up to your own choice.
Nucleas Research did a TCO Case Study for 2 ERP systems for a biotechnology firm with 2600 employees comparing:
They calculated: JD Edwards Enterprise One on annual cost per user $ 1,250 SAP on annual cost per user $ 5,313
Some of my own calculations on the report:
Because OpenERP doesn't have licence cost I recalculated the above cost without licence cost and only including cost for staff and consulting:
- JD Edwards annual cost per user not including licence cost $ 871
- SAP annual cost per user not including licence cost $ 2,845
Project cost made for implementation of the system:
- JD Edwards $ 17,000 per user
- SAP R3 $ 34,000 per user
My first four conclusion based on these simple figures:
- Cost for licencees are relative very small compared with huge implementation costs and TCO on a per annual basis.
- It is smart from OpenERP SA to invest in OpenERP as opensource software. They can earn much more money in other areas like consulting around OpenERP software.
- A decision maker must have primary focus on bringing down the cost for implementation.
- Open ERP can beat competition when they bring down the cost for implementation and take care the decisionmakers are aware of this.
This is referring to what is called Total Cost of Ownership TCO. It applies to IT domain. A lot has been written; see for instance (http://www.business-case-analysis.com/total-cost-of-ownership.html)]
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|Asked: 3/28/13, 5:07 AM|
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|Last updated: 5/21/15, 2:21 PM|