Most Powerful Open Source ERP

5 Reasons to Chose Express Open Source ASP and ERP5 Express

A list of arguments in favour of Open Source ERP and ERP5.
  • Last Update:2007-09-17
  • Version:1
  • Language:en

ASP (a.k.a. Application Service Provider, On-Demand Software or Software As A Service) has gained growing popularity in the last 10 years because it is often the most economical and fastest way to implement a business application in an organisation.

With ASP, companies can save on the following expenses:

  • Server hardware: servers used by an ASP can be shared by multiple customers which results in shared amortisation.
  • Server space: servers used by an ASP are hosted in very dense data centers which optimise the cost per square meter per server.
  • System administration: system administration is handled by the ASP and is often automated.
  • Software configuration: software configuration is often simplified so that the ASP service can be used by more people.
  • Software maintenance: software maintenance and upgrade is handled by the ASP and is often automated.

ASP only adds one extra cost and constraint: Internet bandwidth. This cost is neglectable for business applications and Internet bandwidth is sufficient. However, ASP may not be suitable in certain areas such as multimedia.

If we consider a typical business application for a typical small company in Western Europe, the cost savings of ASP can be evaluated a following (yearly amounts):

Item Yearly Cost Saving (€)
Amortisation of dedicated server 500
1 m2 of Office Space 150
System administration (12 days) 2400
Software configuration (5 days) 1000
Software maintenance (2 days) 400
Total 5450

The cost savings brought by ASP are often higher for a company because of other factors such as:

  • the use of Web technologies which reduce deployment costs;
  • the fact that companies use multiple business applications (ex. ERP, CRM, telephone service, messaging, etc.);
  • the fact that with some ASP, companies are often forced to adopt simpler and leaner business processes which they would not have adopted with a more flexible approach.

ASP however poses a couple two issues: security and competition.

The first problem with most ASP is that the data is in the hands of the ASP company rather than in hands of the customer. There is often no way for the customer to keep an entire backup of the ASP data.

The second problem with most ASP is that their software is secret which prevents any competition. It even creates a risk that the ASP compnay may stop providing the service without any possibility for the customer to keep on using the application and migrating his data with another provider. The size and the number of customers of the ASP has no influence on this risk since merger / acquisition are as probable as bankrupcy for end customers. One should also be aware that the lack of competition may even lead to a situation in which all the cost savings generated by the ASP approach are "stolen" from the customer by the ASP company.

Those two problems are solved by Open Source ASP and in particular by ERP5 Express.

What is an Open Source ASP

Many ASP companies use open source software which they customise but are not open source ASP. Two criteria can be used to define an Open Source ASP:
  1. A true open source ASP uses the same source code as the one available online to the community to provide its service.
  2. A true open source ASP provides a way for the customer to download the application data in its native standard. Exporting the data in CSV, ODS or XLS format is often not sufficient to protect data. It is also not enough to verify that the data can be used with the public source code of the open source application.

5 reasons to chose Open Source ASP

Own your data

Data is the most expensive item in a business application. It is even more expensive to build than the application software itself and its value grows everyday.

With Open Source ASP, customers can backup their business data in its native format and reuse it as they wish.

Own your software

A true open source ASP uses the same source code as the one available online to the community. This garantees to unsatisfied customers that they can run their application on their own server at any time.

Own your future

Open Source ASP garantees that in case of banrupcy or acquisition of the ASP company, the community can still maintain the software.

Leverage competition

A true open source ASP uses the same source code as the one available online to the community. This garantees to customers that they will always find a service offer at reasonable price with high enough quality.

Contribute

Developer may contribute to the source code of an open source ASP and improve the service provided by the ASP company.

ERP5 Express: an Open Source ASP for ERP / CRM

With ERP5 Express: customers can

  • download the native Data.fs file of the Zope application server and use it as is to run their application on any platform.
  • use exactly the source code published at http://svn.erp5.org to run their application on their own server or using any ISP.
  • ask more than 10 independent companies to support.

ERP5 Express is a true Open Source ASP.