Open Source ERP: what it is, how it works, and how it compares to SAP ERP

What is open source ERP and what are its main features? Find out in the following article on our blog.

Photo Ernani Dorador Martínez

Ernani Dorador Martínez Follow

Reading time: 4 min

Adopting an ERP system is a strategic step for any organisation seeking operational efficiency, process integration and digital sustainability. Although I have knowledge and practical experience in the implementation and use of SAP ERP, in this article I present a comparative analysis based on market research, technical studies and specialist references, with the aim of offering a balanced view of open source ERPs and SAP ERP.

Throughout the text, I will discuss what open source ERP is, its main features, most commonly used examples, benefits, application scenarios, and a direct comparison between both models, considering key aspects such as costs, security, and maintenance, to support informed decision-making aligned with each organisation’s technology strategy.

Choosing an ERP (Enterprise Resource Planning) system is a critical decision for a company’s operational efficiency and digital sustainability. Among the options available on the market, open source ERPs have been gaining prominence for offering flexibility, technological autonomy, and cost reduction, while established solutions such as SAP ERP remain a benchmark in large corporations.

In this article, you will understand what an open source ERP is, its main features, practical examples, benefits, when this solution is most appropriate and, finally, a direct comparison between Open Source ERP and SAP ERP, considering costs, security and maintenance.

What is an open source ERP?

An open source ERP is a business management system whose source code is publicly available, allowing companies and developers to access, study, modify and adapt the software according to their needs, respecting the adopted licence (GPL, LGPL, among others).

Like any ERP, it integrates areas such as finance, inventory, sales, purchasing, production, human resources and projects into a single database. The key difference lies in technological freedom, which allows for in-depth customisation and greater control over the system.

Main features of an open source ERP

Open source ERPs share some fundamental characteristics:

  • Access to source code, allowing for advanced customisation.
  • Modular architecture, with only the necessary modules installed.
  • No or low licensing costs.
  • Active community of developers, contributing to continuous evolution.
  • Flexibility of implementation, whether in the cloud, on-premise or in hybrid environments.

These factors make open source ERP highly adaptable to different organisational realities.

Examples of open source ERPs

Among the most widely used open source ERPs on the market are:

  • Odoo (Community Edition) – One of the most popular open source ERPs in the world, with a wide range of modules and a solid ecosystem.
  • ERPNext – Widely adopted by small and medium-sized enterprises, with a strong accounting component.
  • Dolibarr – Lightweight, modular ERP widely used in Europe.
  • Tryton – Geared towards environments that require rigorous financial and accounting control.
  • ADempiere / iDempiere – More traditional ERPs, known for their robustness.

Benefits of open source ERP

Adopting an open source ERP brings significant advantages:

Cost reduction: As there are no proprietary licences, the investment is focused on implementation, support and evolution, reducing the total cost of ownership (TCO).

Flexibility and customisation: The system can be adapted to actual business processes, rather than the other way around.

Supplier independence: Avoids vendor lock-in, allowing you to change partners without changing systems.

Constant evolution: Global communities contribute improvements, corrections and new features.

Open Source ERP is particularly useful when:

  • The company has specific or non-standardised processes.
  • There is concern about medium and long-term costs.
  • There is an internal team or specialised partner to support the system.
  • The IT strategy prioritises autonomy, scalability and innovation.

Conclusion

Open source ERP should not be understood solely as a more economical alternative, but as a management and technology strategy. It is particularly suitable for companies that value flexibility, autonomy, continuous evolution and control over their processes and data.

On the other hand, SAP ERP remains an excellent option for organisations that require global standardisation, a high level of regulatory compliance and corporate stability, and that have the financial and operational structure necessary to sustain this model.

In summary, there is no ‘best’ ERP in absolute terms. The most appropriate choice depends on the size of the company, its digital maturity, the complexity of its processes and its long-term strategic vision. Rigorously evaluating these factors is what guarantees a successful investment in ERP.

I invite readers to discover and read my other articles, in which I share analyses, experiences, and reflections on ERP, digital transformation, and technology strategy, always with a practical and decision-making approach.

Share it on your social networks


Communication

Contact our communication department or requests additional material.