|By Richard Minney||
|October 4, 2012 07:00 AM EDT||
Don't you just love spending millions of dollars to license a commercial ERP package? And then I bet you feel warm and fuzzy about hiring a bus-load of expensive consultants to come and tell you how to run your own business, following so-called ‘best practices' built into an inflexible ERP package. And just when you thought you were going to realize all the benefits of ‘off-the-shelf' software, you find you have thousands of lines of custom code lashing together old systems you didn't dare remove, third-party bolt-on solutions to plug gaps in the ERP software vendor's package, and customized reports, forms and enhancements no-one ever thought someone in your industry could ever need.
Open Source - an Escape from the Commercial ERP software Nightmare?
Then along comes open-source ERP. Kudos to OpenBravo, Compiere/Consona, OpenERP, xTuple, opentaps etc.
Open source (for those who don't already know) means that you get free software, you can extend and modify the source code, you pay no license or maintenance, and you don't need an army of external consultants. Amazing! Too good to be true!
Er, actually, it is too good to be true. Open source ERP is great for some people, but not for everyone. Here's why.
Five Pitfalls to avoid with Open Source ERP
- Open source ERP systems were often built on a shoe-string budget and, despite their commercial advantage, sometimes the number of active customers (not downloads) is in double digits. That means 25-100 other companies before you who have tried and tested the software. Not the tens of thousands of companies who have experienced the joys and pains of a top-tier commercial ERP system like SAP, Oracle or Microsoft Dynamics.
- Support is not included in the free software option. So if you encounter a bug (and based on the limited number of active users, you are quite likely to) then you are on your own. Of course all open source ERP vendors offer a support option, at a cost. At a minimum you need this and it should be the basis of any budget comparison.
- Most ERP open source software vendors now offer a basic version which is open source, and a version with "bells and whistles" on a paid basis. Compiere started this trend by updating their user interface to web-technology and then charging money for it. Hang on a minute - if the bell or whistle is so important, then how can you do without it? Is the open source version really useful without these bells and whistles? Is the difference in the free vs. paid version going to get bigger or smaller over time? Sorry to burst your bubble, but I have not yet found an open source ERP vendor that is a registered not-for-profit charity. They are in business to make money, and one sure-fire way to make money is to charge for things like features that you probably, honestly speaking, need.
- Open source by definition allows customers, partners and ex-employees to take the source code and turn it into a new offering. Sometimes the new open source package addresses a number of gaps in the earlier package; sometimes the author of the new package is greedy and wants to make a fast-buck without writing their own system, or sometimes the new system results from a personality conflict. Either way, it means that your ERP vendor might not have actually written the open source ERP package they claim to be expert in, or perhaps not all of it.
- Open source ERP vendors are not making much money. No profits must mean lower prices, so a great deal for the customer, right? Wrong. The one thing you need out of your ERP vendor is for them to stick around. You are literally betting your business on their software application and you are going to need to rely on them for years, maybe even decades to come. The last thing you want is your ERP vendor to go out of business, be acquired by another ERP vendor (who you can bet will slash future development on their step-child) or decide to invest their time and energy pursuing something else.
Open Source ERP Is Not for Everyone
To be fair, open source ERP is great for some people. There are many happy customers using open source ERP. Most of them have bright and tech-savvy staff on hand who are not just willing, but even relish the idea of rolling up their sleeves and fixing bugs or designing enhancements. That's why open source users are so vocal on forums as compared to commercial software users. They are the pioneers on the front-line of new technologies, blazing the trail of open source ERP adoption and adaptation. And they're proud of it.
Are you that kind of company? Or are you in business to do something else, like, er, what you set up your business for in the first place?
The Community to Complexity Conundrum
Some open source software is spectacularly successful, Java itself being the poster-child. Go to sourceforge.net and you will find tens of thousands of cool open source applications, downloaded millions of times every day. Here is an important factor to consider: community to complexity. It works as follows: The most successful open source software has a huge community in proportion to its complexity.
For example, open source software like Java, which started out life as a simple language became huge purely because of the community. On the other end of the spectrum, ERP is arguably one of the most complicated enterprise software applications imaginable ....but because it is so specialized it simply does not have the community large enough to match its complexity.
Some technology leaders bend this rule by investing millions of dollars into their own open source offerings to gain traction, such as what Sun did with Java or Google with Android. Open source ERP vendors don't have the funds to do this so they must rely on their small community battling with a hugely complex open-source set of applications.
Is Your ERP a Hobby or a Tool?
So the take-away is this: Do you want your ERP system to be a hobby and passion, or something that just works in the background? Do you want to get into the nuts and bolts of the package or get something that is easy for non-tech savvy subject matter experts to deploy and use?
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 26, 2015 12:00 PM EST Reads: 128
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 26, 2015 11:00 AM EST Reads: 437
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 26, 2015 10:00 AM EST Reads: 278
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 26, 2015 09:45 AM EST Reads: 357
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 26, 2015 09:30 AM EST Reads: 367
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 26, 2015 09:00 AM EST Reads: 471
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 26, 2015 08:45 AM EST Reads: 261
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 26, 2015 06:45 AM EST Reads: 393
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 26, 2015 06:15 AM EST Reads: 299
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Nov. 26, 2015 03:45 AM EST Reads: 691
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 26, 2015 03:00 AM EST Reads: 305
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 26, 2015 02:00 AM EST Reads: 191
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 26, 2015 01:30 AM EST Reads: 436
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 26, 2015 12:00 AM EST Reads: 527
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Nov. 26, 2015 12:00 AM EST Reads: 287
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 26, 2015 12:00 AM EST Reads: 487
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 25, 2015 10:00 PM EST Reads: 396
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 25, 2015 09:00 PM EST Reads: 369
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Nov. 25, 2015 08:30 PM EST Reads: 370
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 25, 2015 05:00 PM EST Reads: 304