Open Source - the BAD News

Before you even think of trying Compiere. What you should worry about. What are the issues? These are stuff that our prospects and clients went through. No holds barred. We tell it like it is.

Open Source - the BAD News

Postby red1 » Tue Sep 07, 2004 10:20 pm

You have heard of the good news but we can tell you the BAD NEWS of Open Source because we have experienced both the good as well as the bad. Before considering Business Apps that do Financials Integration and ERP, let’s consider an even more simpler and ubiquitous Open Source app. known as Linux. We all know its free. Its easy to obtain, either via download or from CDs, and they are quite easy to install today compared to say 3 years ago. We also know that today the cost of using pirated Microsoft Windows/Office suite in Malaysia – at least USD2600 fine, jail sentence up to 6 years for the company’s directors and bad publicity – will drive many to consider Open Source software. Yet proprietary Microsoft that cost about USD500 still commands 85% of the desktop market.
Why is that so? Easy it may sound, it is still too difficult to figure out the learning curve with Open, unwarranted, and unsupported software - how to solve even the various utilities that are needed properly? Or keeping it well integrated with the other office peripherals such as printers, plotters or devices, or even formats such as PDF, JPG or XLS? There is just too much hassle and pain to save USD500.
Now, the only solution through that is to have either lots of Linux experts around, which we don’t or have lots of Linux training for the company’s users, which will cost more in the long run! But for ERP apps this is even more compounded, either in training or having experts around. There are even so much less expertise in this area. The only way out then is for the gods of such software to have mercy on us commoners, so to speak.
Even when the pain of learning is justified where the figure is USD100,000 which is what ERP software similar to Compiere costs today. But can the costs of training remain competitive and at reasonable levels, even right down to Linux training level? What will you do if the answer is yes?!
So would you train your company to save USD500 or USD100,000? We have pondered on these kind of problems and issues and figured out the answer for you. Buy Microsoft XP but save on the business suite that sits on top of it. We are asking you not to save USD500 but save USD100,000. Its that simple!

Thus for us to move more agressively into the market, we have to provide low cost effective training to other IT practitioners, more than just Users, as IT shops will proliferate faster and enrich the marketplace with test case experience and maturity that is really needed to get a quantum leap in value for Compiereans.
red1
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Postby Markus » Wed Sep 08, 2004 1:44 am

Hi Red1,
I have to agree with you to a certain extend. Here in South Africa things might be slightly different: In the past smaller companies did not worry too much about being legal (cost of overseas software being the major issue as well as in non-it related areas, software is seen as a grudge payment!). Now that Microsoft and other major software companies are putting their foot down, even the small companies are scared (lots of them are being closed down because they cannot afford to become legal). Suddenly cost, even as little as $500, becomes an issue if you suddenly have to fork this out for 20 users!
We have just converted our first customer to a complete open source solution (we still have to convince them to use Compiere, hence I am desperatly trying to get to grips with the system :wink: ). They agreed to convert their servers and desktops to Linux, they are going to install OpenOffice and hopefully Compiere. To give you an idea, our costing exercise showed that they would have to fork out about an equivallent of $45000 :shock: to get their current organisation legal (this includes license costs for their current accounting system). Each new user will cost them about $1500 once off. This excludes annual maintenance cost and upgrades. With the Linux solution the cost of setting up, configuring Compiere, Training all users the cost comes to approx. $40000. You might say there is not much of a difference but if you look at the cost of an additional user there is a huge difference: about $100 :D .
Based on their current growth rate, they took no more than 10 minutes to decide on the Opensource path. :lol:
Markus
 
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