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RE: Odoo v9 Community and Enterprise editions

by
Van Hirtum Johan
- 05/11/2015 13:10:57

This is a right analysis ! When OpenERP  has simply a good aftermarket offer = provide companies with a upgrade script one a year and have good help desk where companies can rely on to know how they can accomplish tasks in Odoo, than their business will be easily profitable. When 1.000.000 companies pay 3000 eur/year you have 3.000.000.000 eur what is more than enough money to led 10.000 good programmers work on the program and 10.000 people give support to the customers…. And most companies will agree on a 3 or even 5 year contract, if the promised help is there, so you have a stable revenue base. This is a far better way than license fees…. But of course, you must offer some real value, otherwise many companies choose some other solution or buy the help they need somewhere else then from OpenERP….

  

 

Van: Anders Wallenquist [mailto:anders.wallenquist@vertel.se]
Verzonden: maandag 11 mei 2015 17:12
Aan: Community
Onderwerp: Re
: Odoo v9 Community and Enterprise editions

 

Den 2015-05-11 15:10, Antony Lesuisse skrev:

> I am curious about your deployements, do you mean that the Odoo instance is

> always running on the intranet only inside the building of the company ? Do

> the employee access the instance from outside the office using a VPN to

> connect to the intranet.

 

90 percent of our customers are using OpenERP/Odoo as an ERP-system for 

employees only. Sometimes on local servers, sometimes cloudservers 

accessible only for employees.

 

This will probably change over time with all new fancy web functions. At 

this time all of our modules developed for customers using some sort of 

"web access" or public functions can be found at github. If someone 

wants the code its easy to point them in the right direction.

 

Yes we charge our customer for module development and customizations (in 

fact the vast IT developments occurring in the worldare customizations). 

The model with transparent development and equivalent cooperation that 

free software gives an opportunity to do are the most efficient way to 

develop systems. On the other hand there are just e few companies that 

have a successfull licence selling model and a very, very long line with 

companies that are unsuccessfull.

 

We have studied some ERP-companies and their business model for a couple 

of years now - for example IFS Industrial and Financial System. In the 

year 2000 they had a revenue from licences of 96 MEUR, product 

development cost of 52  MEUR, selling and dristributions cost of 170 

MEUR, aftermarket services 120 MEUR, (negative total revenue) and 2600 

employees.

 

To generate revenue they set a goal that the development cost and 

selling/distribution would fully be financed by license selling in ten 

years time. With the same personell and cost costume they should sell 

licenses for 320 MEUR.

 

Failed to do do that they outsources nearly all development to the 

philipines.

 

2013 licens selling +53 MEUR (half 2000), selling and distribution -90 

MEUR, product development -26 MEUR, aftermarket services +220 MEUR 

(double 2000), 867 employees and positive cash flow.

 

In thirteen years IFS failed to increase license selling but doubled 

aftermarket services. Development cost are half, but i'm not sure the 

development phase have increased even if phillipine programmers cost a 

fraction of a swedish. Aftermarket services are not as sexy as licenses 

but the only thing that have made the company survive was staff cuts and 

better aftermarket services. If they instead had dropped the licence-fee 

I'm sure the installed base should be significant larger. With a larger 

installed base the market for aftermarket services also are larger. If 

they published their source code as free software and also manage to 

build a professional community the development cost would decrease, 

development phase increase.

 

The same pattern was true for MySQL AB, they had their revenue from 

aftermarket services and the "enterprise"-licens model or selling 

dual-licenses never worked. I havent seen the figures for MariaDB but am 

pretty sure that they point in the same direction.

 

Without revenue from license selling you have to depend more on the 

customers (via community) to develop the functions you think the product 

need. You have to make incentives for that and have to be more 

transparent. Without revenue from license selling you have to develop a 

portfolio of aftermarket services that is easy for the community to buy 

or resell.

 

Regards,

 

Anders Wallenquist

>

 

> On 05/11/2015 12:55 PM, Anders Wallenquist wrote:

> > Den 2015-05-11 11:13, Stefan skrev:

> >> On 11-05-15 10:47, Alexandre Fayolle wrote:

> >> > This is BS.

> >> >

> >> > I don't know specifically about Akretion. As far as Camptocamp is concerned:

> >> >

> >> > 1. our customers' instances are typically not reachable over a public IP

> >> > address.

> >> > 2. the customer specific code is released under AGPL to the customer. If

> >> > he chooses to change partners for maintainance, he has the source code,

> >> > and the new partner is allowed to modify and redistribute the code

> >>

> >> Same for Therp.

> >

> > Same for Vertel

> >>

> >> Cheers,

> >> Stefan.

> >>

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> >

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>

 

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