Story of Odoo: Open-Sourced Competitor to Oracle, SAP
breakoutstartups.substack.com
breakoutstartups.substack.com
The good; The OCA (community association), the people (both community and Odoo), the basic framework gets you up and running fast. You can tell it’s grown over time, and it’s got sharp edges, but you can get what you need done. Not necessarily in the prettiest way. The backwards compatibility and desire to not break the core APIs is generally good from what I’ve seen so far. Individual modules depends how much Odoo themselves lean on it afaict. GitHub access for partners and direct source access to both enterprise and community editions has been extremely helpful.
The bad; imho testing is a pain. The ORM uses Polish notation to build filters, which if you’re used to SQL is frankly irritating to work with. The ORM itself is quite clever, but it’s also not like any ORM I’ve worked with. The dev docs aren’t great, beyond the basics. The quality of modules in the “App Store” is extremely hit or miss. Odoo official “support” as a partner is questionable. I feel like they’re under pressure to get you to pay up to be a partner and then some period of time you might get help later. Anecdotally I’m led to believe our partner account manager has been pushing us hard to host a local event at our own cost (I’m not that involved with that side). The last few versions have seen more accounting features drop out of community edition. Some of the official apps are basic.
Is it better than SAP, Dynamics, etc.? Probably not. Is it good enough given the price point and flexibility, for smaller businesses? Probably, especially if the business has been tying together lots of apps adhoc.
Does this mean they are removing features from the open-source edition and limiting those features to enterprise users?
Here is a blog that explains the right balance between Odoo Community and Odoo Enterprise: https://www.odoo.com/blog/odoo-news-5/post/odoo-community-en...
ERPNext has reasonable traction too (~5k+ stars on GitHub, 12k+ forum members) and is used by some very large enterprises.
Disclaimer: I am the founder of ERPNext
Lots of marketing hyperbole which puts me off.
they really push you towards enterprise.
Odoo on the other was just a big pain. None of the workflows was automated. The consultant had no idea how goods receipt works. Not sure how much of it was the fault of Odoo and how much was due to a bad installation and bad custumizing. Regardless, this experience kicked Odoo of my list potential ERPs right away.
Somehow you see especially "enterprise" software being written as a kind of proprietary platform, often like a kind of jvm or .net clone, with some half-baked ORM and lots of moderately documented (at best) infrastructure ("framework" ugh, usually feels like a straightjacket), on top of which one can develop "modules" that are all intertwined and create a dependency hell and a huge dependency on the proprietary platform.
I don't see the point. There are enough open platforms that are at least as good to create "enterprise" functionality, including database frameworks etc. Why would one use a proprietary framework that you have to adapt to, instead of a general purpose platform with some libraries that you can pick and choose from?
The feature set is unstable though. From version to version they will remove first class features from COMMUNITY EDITION to ENTERPRISE.
Biggest for me was financial accounting, which was removed.
Some new large features to trickle down to COMMUNITY also, so the pendulum swings both ways. However I don't see this instability as anything good for the community edition users.
These companies will happily take the goodwill and source contributions that come from being open source and then eventually try to monetize by abandoning their open source license.
One can then imagine that the competitive edge of this new software is subsidized by their customers' developers who contribute the modules needed to cover corner cases (like addresses in Japan, those are hard!).
I agree with your point in general (Gitlab, for example), but this kind of software lives in an enterprise bubble which in my experience has much less 'true' open source behaviors anyway. If this model works for anyone, it's enterprise.
They aren't hard but indeed easy and very logical. It all started with the Chinese system of starting with the largest geographical entity and going to the most specific one [1]. Later its adopted both in Korea and Japan. It's been the same for dates Year-Month-Day (largest, smaller, smallest). There is no confusion whether it's DD/YY or MM/YY. Funny enough the currency symbol for Yuan and Yen is same character (¥).
So if you understand Chinese, Korean or Japanese language the systems are same.
In Japan the addresses start with the largest geographical entity and proceed to the most specific one. [2]
[1] https://eastasiastudent.net/china/mandarin/postal-address/
[2] https://en.wikipedia.org/wiki/Japanese_addressing_system
- Some building have one or more entrances or various sides of the block. Knowing the block does not give you any information on how to enter the building and so you basically just have to know the building you're going to or use maps/directions. In Western countries the number on the street is the main entrance of the building in most cases
- Building names are often foreign in the downtown areas and can be confusing for locals + nonlocals to interact about. For example, pronouncing "Bienvenu Mansion" with my American accent can be confusing to the Japanese due to their particular Katakana readings of foreign words.
My original point isn't very strong because in computing that isn't an issue since it's a problem for time of delivery or arrival, but I was just highlighting one random complexity of which there are millions globally that these ERPs need to handle.
Even in Europe each place has their own way of address e.g. an Italian address will be different from a Swiss, French or a Belgian address system.
ERP's are able to handle it for many years this complexity, now we should be able to make it easier.
But if we look at some open source foundations, they are pretty much that (but usually in a non-profit form, why would that be? /s).
All the decisions we took have never been influenced by VC, or a goal of large returns. Quite the opposite: we always execute for the long term (e.g. growing the community), rather than short term benefits.
Our decisions are based on good balance between the good of Odoo Community, and the financial sustainability of the company and partners.
There is no way we will abandon our open source product. To guarantee that on my own, I kept the majority of the shares. (and I work for the project, not the money)
For years, we have had people thinking we will abandon the open source community. But we do that since 15 years now (first VC invested in 2010), and we continue investing massively in our open source version. (Typically, we try to keep a ratio of 80% of what we do is open source, 20% is Enterprise)
Explanation of our model here: https://www.odoo.com/blog/odoo-news-5/post/odoo-community-en...
every of those decisions are speaking against what you just said.
I work for a large enterprise that has basically written its own ERP from scratch. There's a lot of rough edges but it's very tailored for our workflow and processes.
I've toyed with the idea of what I'd build if I could largely take what I know and start fresh (standard exercise in madness, I know) in order to learn about the bits I am not familiar with (I'm more in manufacturing, know very little about CRM and accounting processes).
It was very interesting coming across this only a few weeks ago and seeing this here. Starting it up in a docker container was a snap and it had a number of free modules that were easy to add. It's very basic but gets the point across and was a fun learning experience (and nice because it's in a language I don't currently develop in, python).
Just thought the timing was peculiar and enjoyed hearing about folks here harping on ERP development as soul-crushing. Yes, it can be at times, but I also really enjoy how it lets me really dig into my company's processes. When you get it right, it can make your users sing with joy when you help speed things up or streamline things.
I don't know where I was going with this but just enjoyed the article :)
That is exactly the problem. Most ERP, SAP, Dynamics or Odoo have a fixed workflow pattern. And I argue this is no good for SME. SME dont want to adopt to the 5000 small procedures in a large enterprise, but they still want Software to enable much better efficiency. One of the SME had a very decent ERP work done with Visual FoxPro, and apart from the lack of software update and Internet connection it was doing great.
And for other small business, AirTable and Coda goes a long way.
I still think there could be a lot of work in this space. In terms of CRM, HR, Payroll, Accounting are easy, once you move into Stock, Sales, Invoicing, things become trillion times more complicated.
Edit: One of the difficult thing with off shelf ERP design for SME is that it is highly unlikely a single person in a company that has a deep understanding and overview of every single department and how everything interlinks and play. ( For Enterprise that is 1000+ employees everything is likely broken down into very clear manner. ) It very often these people telling how ERP should adopt to their workflow often end up not fully explaining the implication. And I have yet to see a single, decent off shelf ERP implemented that works.
( Working in the boss views does not mean working in the employees views, very often there is little to no efficiency gained. )
For a little background, Tryton is a fork of Odoo when it was still called TinyERP, motivated by disagreements among TinyERP founders and early developers on the technical and business directions.
See 2016 HN discussion https://news.ycombinator.com/item?id=12985791
I'm involved in both Odoo nd Tryton. For a first approach, I would say they are very different
- by their surface: Odoo tends to be The solution, Tryton focuses on providing best basics.
- by their ambition: Odoo aims first places, Tryton wants to please its members and users.
- by their size: Odoo is a big project, Tryton is a small community.
I pre-configured again both last week for customers. Apart Odoo's gadgets collection, I really prefer Tryton user experience.
Is that a good thing, 15 years in?
At best I can imagine having to use the thing for work, and at least being able to hack in a fix for a bug. Assuming I can actually get the whole thing to build. And that there's any stomach in the organization for customization that isn't on somebody else's liability.
That said, while I enjoyed the six years I worked with it at different companies, I can't say I'd spend my free time on it. But I don't think that's necessary for FOSS to work; Odoo has a pretty good community (OCA), mostly composed of people paid to work with it.
What we do is more comparable to building an open source WIX, Trello, Slack, Pipedrive, ... I would never do something else :)
> Odoo is largely profitable…
What is the difference between "largely profitable" and "not profitable"?
ERP vendor roundups, Magic Quadrant and McKinsey advisories exist in a totally different world.
We have never been hype, but kept focusing on building a great product. Today, there is no competitor anymore that matches Odoo, for the scope and price. We have millions of users, and have a serious impact on SMEs using Odoo.
I don't think b2b software on a slow and complex market ever get momentum. (E.g. over the past 15 years, Salesforce growth has always been below 70%. But if you consistently grow above 30%, it gets huge)
Disclaimer: I'm friends with the devs behind Scipio.
https://github.com/Yenthe666/InstallScript
It runs fine even on Digital Ocean USD5 instances.
Thanks Yenthe666!
There are already 31k employees dedicated to Odoo, working for official partners. (12 per partner on average, 2600 partners) And probably as much in the community. 50% of partners do more than 50% of their business on Odoo; it quickly become their main source of revenues after one or two years.
Margins are high as it's based on highly valuable business services: what you deliver is not your time, but software that transform the company. We charge on average 950€ / 1050$ per day.
I have seen a lot of self-employed or small companies growing fast as they started working on Odoo.
Odoo has a real positive impact on companies using it, as you can see in these interviews of random customers: https://drive.google.com/file/d/0B5BDHVRYo-q5eXZIMnpyNjVYV0x...
IMHO open core is a truely treacherous model that should be avoided at all cost. Better completely closed source than the evil mixture.