1. Open ERP
Open Source Business Model Explained
- Fabien Pinckaers, CEO Tiny -
Cercle du Lac, 2010
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2. Fabien Pinckaers
CEO OpenERP
● Director of 4 companies
● Web Development
● Tiny SPRL
● Tiny At Work (Canada)
● Tiny ERP India
● Projects:
● Auction-in-europe.com (1997-Today)
● Openstuff.net (1998-2005)
● OpenERP (2004-Today)
● Author of Management Books
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3. OpenERP
Open ERP, The product
●
Editor of Open ERP
●
Full featured enterprise management software:
accounting, crm, sales mgt., manufacturing, project mgt,
stocks, document management system, etc.
●
80 employees, self-financed and profitable
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4. Introduction
A disruptive Open Source Management Software
 A strong product:
• Full featured ERP (500 modules).
The most advanced on the market
for SMEs.
• A well known mark: Open ERP
• Happy references (La poste, ENA, …)
 A very healthy ecosystem:
• A dynamic community (1000/300
contributors) Revenues & Staff
• A strong partner network (22
countries) 800 730 100
90
700
• A world-wide demand (85 leads per 600 65
80
70
day) r
500
410 60
t
n
u
o
u 400 50 c
e d
 A profitable business: K
300
310
32 40
a
e
H
182 30
• Team of 85 employees 200 15
109 20
100 3 10
- 0
2005 2006 2007 2008
Revenues Net Result Total Headcount
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5. Open Source / Free Software
How did we achieve this ?
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6. Open Source / Free Software
It's all about freedom !
 Open Source Licence (GPL)
 The freedom to:
• Run the program
• Study the source code
• Distribute the software
• Redistribute
 The snowball effect !
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7. Fast growth / Low R&D Budget
Tiny, because size matters !
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8. Marketing & PR
Open Source + Concentration effect:
Strong brand & real market penetration
Google Trends: OpenERP/Netsuite
✔
Netsuite: 80M€ in sales and
marketing in 2008
✔
OpenERP: 200k€ budget Sales &
Marketing in 2008
Partners : over 60 in 22 countries References
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9. Monetization & Open Source
But how to make money ?
… lots of money
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10. SAP's Income Statement
Let's have a look at competitors that make
lots of money...
Proprietary Business Model (*) Open ERP
25%
25%
15%
20%
45% 45%
20%
32%
20%
8% 5%
30% 30%
Other Support Licences Sales R&D Cost G&A Other Support Sales R&D Cost G&A
Services Maint. Marketing Services Services Maint. Marketing Services
(*) Based on SAP's annual financial report 2008.
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11. Business Model
Partner
SaaS Editions Support
Services
Small Projects (0-50 users) XXX X
Medium Sized (<100 users) XX X
Bigger Projects (>100 users) XXX X
Partners XXX
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12. Summary
A lack of 25% in sales (no licences) but:
● Fast growth of the product (low R&D costs)
● Low sales & marketing investment
● High distribution of the mark & product at
low costs
No licences revenues...
… but higher margins !
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13. More Information ?
• Open ERP : http://openerp.com
• On Demand Offer: http://odoo.com
• Fabien Pinckaers
• sales@openerp.com
• +32.81.81.37.00
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