Small-Biz Meets ERP

Open-Source Gaining Ground
In the SMB sector, the ground is slowly shifting to open-source ERP alternatives. Solution providers are exploring low-cost open-source ERP alternatives because they have full control of the software and can easily differentiate themselves. Open-source vendors such as Apache's OFBiz, Compiere and OpenMFG offer well-developed ERP suites.

OpenMFG offers one of the most comprehensive ERP solutions. The company's open-source model abides by an exclusive source-code distribution license, whereby solution providers can get the code after buying the software. OpenMFG provides mandatory classroom sessions, which are included with the $3,000 annual program fee.

OpenMFG's ERP software is built on PostGres and its stored procedures, so solution providers do not have to write code to integrate it with other applications. A database link is all that is required. The OpenMFG software architecture allows solution providers to easily test new features by adding database objects such as event triggers and table fields. The software uses QT as its GUI and comes bundled with open-source OpenRPT to generate reports.

Compiere boasts that its open-source ERP software has had more than 1 million downloads. Compiere is an out-of-the-box ERP product, but with an unusual twist—the software uses a generic model-driven architecture to change the application and add new features. Its open-ended ERP solution arrives with built-in regenerative properties in the source code. Essentially, Compiere developers have abstracted many components that would normally be hard-coded in a finished application.

Whether solution providers go with one of the commercial vendors or an open-source alternative, they will need to offer a range of solutions and an ability to custom fit those solutions to businesses of different sizes. "One of the biggest challenges is how to start separating clients," Solomon said. "They have totally different needs."

Net@Work initially sold just one accounting system, but found that it needed to expand its line to service different customers. "It would often mean fitting a square peg into a round hole, so we brought in multiple ERP solutions from Sage," Solomon said. "When we talk to a prospect, we look at their business and come back with a recommendation. Now we sell Accpac Pro, Accpac Advantage, MAS 90, MAS 200 [and] MAS 500."

ERP solution providers such as Net@Work also commonly find in the small- and midsize-business market that they need to handle hardware and network infrastructure as well as applications. Alternatively, many solution providers catering to the small-business market are finding that being able to deliver integrated business applications, by whatever name they go by, is becoming part of what it means to be a full-service provider as ERP solutions come downmarket.