Compiere – Open Source ERP solution for distribution and service industries; includes CRM, accounting, inventory management. Free Trials
Open source software is defined as one that can be distributed and used freely – without paying a license fee to a company. Linux is the most famous open source software to date. Linux is an operating system. There are many open source software available today that can allow you to perform functions like – create documents and presentations, run web servers and databases, create graphics. Given below is a list of some of the most effective open source software.
Open source software is free to download therefore lower in cost. Flexibility and customizability Extensive active builder and user communities that forms a good technical support base. Many open source applications run on multiple platforms including Windows and Linux. Adherence to established standards, which is a high priority for open source software development. Ability to use and link to other open source software
Most proprietary software comes without the source code, which is the code originally written by the programmer. Without this code you do not have right to change the way the software is developed. When you buy proprietary software you are essentially buying the right to use the software in a specific way, and in many cases the company that developed it owns the software, and you just purchase rights to use it.
The main difference between commercial support for proprietary software and commercial support for open source software is that the proprietary software is obligatory and the open source software is optional. If you opt out of paying for support for proprietary software, you lose the right to use it in most cases. The costs incidentally tend to be quite high for proprietary software.
Perceived advantages of proprietary software include:
1) Reliable, professional support and training available;
2) Packaged, comprehensive, modular formats; and
3) Regularly and easily updated.
The downside however is that it is:
1) Costly, and
2) has closed standards that hinder further development.
Open source accounting software has the advantage of:
1) Low cost and no license fees;
2) Open standards that facilitate integration with other systems; and
3) it is easily customizable.
The down side is:
1) Lack of professional support;
2) Evolving developer communities;
3) Lack of release co-ordination; and
4) Erratic updates. However, with such a large development and user-base, many discussion forums and help sites are available for users.
So what is the right solution for you and your organization? Generally, for smaller organizations and projects, Open source solutions seem to suffice. The difference in cost more than makes up for the perceived disadvantages mentioned above. Larger organizations seem to require more robust, high-quality product with high levels of service and support. They want responsibility, reliable assistance, and support from their suppliers.
ERP(Enterprise Resource Planning) software has traditionally been used by large corporates to integrate and automate diverse departments across the enterprise. For a long time, smaller companies purchased individual accounting and payroll packages and then migrated to expensive ERP solutions as they grew. They did not have much options as ERP solutions were costlier and required magnitude and many employees to justify their use.
Now, with many Open Source Accounting software coming out, it is possible for SMEs to go in for ERPs at an earlier stage. There are several in the market including Compiere, ERP5 and Fisterra. Companies have to carefully study individual requirements and test out these softwares to determine suitability.