As we head into 2011, we’re expecting incremental but constant change to occur in the ERP applications arena. Faster deployment times and ease of customization will become even more important issues than ever for customers. Against this backdrop, commercial open source ERP vendors may win over additional customers, particularly if they can field apps tailored to those twin needs. That’s one reason why xTuple has been bringing more capabilities to market this year, some designed specifically to woo smaller firms, others aimed more at larger organizations.
Increasingly, we hear about commercial open source apps providers seeking to appeal to customers that don’t have a particular open source agenda, but are simply in search of cost-effective alternatives to their existing ERP software or are looking to take on their first full-blown business apps. Some of these customers, both small and large, are also seeking more modular, flexible apps offerings as alternatives to the bigger, more comprehensive suites from larger players.
|The 451 Take|
|While 2009 saw xTuple double its paying customer base, this year’s focus for the commercial open source ERP vendor has been on putting features in place designed to broaden its appeal to new sets of potential users. The timing for such a move is good since the ERP apps space is undergoing change, both in terms of ongoing consolidation and more user interest in SaaS or hybrid deployments. In offering a range of options for users, including Cloud Access, xTuple is positioning itself well in line with these trends.
The acquisition of rival Compiere by Consona holds both pros and cons for xTuple and its peers. On the plus side, xTuple has already picked up some former Compiere users and partners; conversely, the sale may cause some user nervousness about opting for a commercial open source player, and we do hear rumors of possible further consolidation. Ultimately, we anticipate that many of this year’s moves from xTuple will bear fruit in terms of more customers ? perhaps some AS/400 refugees from Infor and Oracle’s JD Edwards ? and existing users picking up more modules.