Open for ERP and CRM business

By David Allinson

The open source model of which Red Hat is a leading proponent with its Red Hat Enterprise Linux (RHEL) platform forms an interesting alternative, not just as an operating platform but also as the basis for some key business applications. It returns control to the user. You can see the code, change it, and learn from it. Bugs are more quickly found and fixed. And when users don't like how one vendor is serving them, they can choose another without overhauling their infrastructure. No more technology lock-in. No more monopolies.

We believe the open source system simply creates better software, whether applications or operating systems. It multiplies one company's development capacity many times over. Everyone collaborates and the best software wins. It's no coincidence that the rise of open source has closely followed the rise of the internet. The perfect breeding ground for collaboration, the Internet moves ideas and code around the world in an instant. As a result, the Open Source model often builds higher quality, more secure, more easily integrated software, often at a vastly accelerated pace and lower cost.

Across the Middle East, enterprises large and small too are looking for more value from their IT investments, flexibility to adapt to new market conditions and the ability to quickly customise or develop applications to match business needs. In this scenario, having the right IT systems in place is not just critical for success but also for operational survival. While large enterprises and government organisations with complex requirements are embracing open source software instead of proprietary alternatives, smaller companies are also increasingly seeking a solid platform for running applications like enterprise resource planning (ERP) for example.

ERP software was originally developed, at costs of tens of millions of dollars, for large enterprise level and government organisations to integrate the flow of business information throughout a company. This has increasingly been adopted by smaller organisations that needed to integrate financial accounting software, supply chain management software, CRM software, and many other business software elements without the high up-front cost for license and implementation of traditional ERP software.

Open source plays several roles when deploying ERP solutions or indeed any other applications. The user can use traditional ERP software and run it on open source platforms like RHEL or opt for existing ERP software developed by open source vendors or even work with Red Hat's JBoss to develop in-house ERP software or customise an existing application. While open source software has many advantages many large organisations are already running major ERP and CRM solutions from SAP and Oracle on the RHEL platform. Both vendors have worked extensively with Red Hat to certify their applications. For others, there are an increasing number of open source ERP and CRM alternatives such as Compiere, Sugar and Centric that are worthy of consideration.

Open source software, whether you opt for readily available software or develop your own, delivers major cost and implementation advantages over traditional software. Hardware costs such as servers can be up to 50 percent lower, because the open source code is less storage and processing intensive than proprietary software. Maintenance and modification of the code is also easier for the same reason. What was once the province of big price tag UNIX boxes can now be addressed with commodity Intel servers running operating software like RHEL. This option gives users more budget to invest in applications.

At the end of the day, arguments about the platform on which you build your IT solutions should be based on business benefit, not on the marketing spin of technology vendors. I believe the open source route makes sense in most cases but every company; every organisation has different needs and different business drivers. While the world of proprietary software still dominates, the two worlds of open source and proprietary software are coming together. Cohabitation is the new word and that can only help users.

Wise counsel suggests that, you should consider the alternatives, with an open mind. Don't be misled by out-of-date perceptions; instead, challenge your vendors or implementers to justify their choice of technology. Take control. After all, it's your business that needs the best-informed choice.

About David Allinson
David Allinson is the General Manager for Opennet MEA, the authorised Master Distributor and Certified Training Centre for Red Hat products in Middle East and Africa. He is responsible for reorganising its Middle East operations. David brings with him over 25 years experience in growing and developing businesses, creating winning strategies to strengthen their position in their individual market segments.