The Midmarket Storm: Why Odoo is Brewing Up Something Big
S2, #28: Uncensored thoughts of a CEO of an ERP implementation company about the cloud crossroad, the solution, and signs to come.
The midmarket ERP storm is brewing - and you'll never guess who's at the eye of it.
With SAP forcing complex cloud migrations, businesses are frantically seeking flexible, tailored solutions.
This is where Odoo comes in. As an open-source powerhouse, Odoo shakes up the industry with user-friendly, modular ERPs that let you pay only for what you need. Its momentum is undeniable, solidified by a monumental alliance with "Big Four" titan KPMG.
But why exactly is this unassuming disruptor causing such a stir as savvy leaders abandon rigid on-premise ERPs?
Read on for all the juicy details...
The Start of The Problem: The Cloud Crossroads
Did you enjoy the comic? Well, I did. And I had to admit I had way too much fun making it.
SAP's cloud push has sent shockwaves through the midmarket, forcing businesses to confront complex transitions and potentially ballooning costs.
Note how I highlighted the word “potentially ballooning cost.” It’s because the exact cost increase is difficult to pinpoint, such as:
Variable Pricing: SAP uses a complex, tiered pricing structure based on factors like user licenses, modules deployed, and industry specifics. This makes it hard for me to give you the prediction of a universal price increase.
Negotiation Power: Businesses with significant bargaining power may negotiate lower migration costs or secure favorable cloud pricing structures - which is quite unfair for businesses that are “less renowned.”
Subscription vs. Perpetual Licenses: What I can tell you for sure - traditionally, businesses purchased perpetual licenses for SAP software. Moving to the cloud would involve a subscription model, leading to recurring costs instead of a one-time purchase.
Read more about the Odoo Total Cost of Ownership (TCO) breakdown. If you are lucky enough, you can find a downloadable resource that could help you understand ERP pricing better.
The Solution: Rise of Adaptable Software
There are literally new waves of ERP solutions built to meet the specific needs of midmarket businesses. One of them is Odoo. Solutions like Odoo ERP prioritize user-friendly interfaces, modular designs, and cost-effective deployment.
PS: Except for the Odoo Studio. Still don’t know how I feel about that one. Let me know if you are interested in knowing why.
You need to pay only for the functionalities you require, and the intuitive design empowers your team to hit the ground running. It is easy to imagine that in this new environment, businesses have a lot more choices and flexibility when selecting an ERP solution.
One thing I can tell mid-market businesses seeking a smooth and strategic path to the cloud, an adaptable solution like Odoo or other smaller ERPs connected that provide big data connectors can offer a compelling alternative to the one-size-fits-all approach of traditional enterprise systems.
I’d wager the “big data” approach would provide a good processing load time, be able to tackle complex workflow, accommodate the number of users using the system, and is still much more budget-friendly in comparison to ERP giants.
If you want to read more about our implementation process, I’d recommend giving these two a read:
Why Odoo, Industry Recognition, and A Sign of Things to Come
As an ERP implementation specialist for most of my life, I've witnessed the ever-evolving landscape of enterprise resource planning.
One of the most significant recent developments is the burgeoning recognition of Odoo explicitly designed for the mid-market (and why I am glad I went with selling Odoo instead of other ERP systems).
A prime example of this trend is the strategic alliance formed in May 2023 between Odoo, a leading open-source ERP solution, and KPMG, one of the "Big Four" accounting and professional services networks. This powerful collaboration signifies a major shift in the industry.
I can guarantee you that KPMG's move is not in isolation.
A growing number of midmarket businesses are actively considering or planning to move away from traditional, on-premise ERP solutions.
From what I can see, this shift is driven by a desire for greater:
Flexibility: Midmarket businesses require solutions that can adapt and scale alongside their growth trajectory.
Affordability: Traditional ERP systems can be cost-prohibitive, with hefty licensing fees and ongoing maintenance expenses. Adaptable solutions often offer subscription-based pricing, reducing upfront costs and providing predictable budgeting.
User-friendliness: Complex interfaces and lengthy implementation times hinder productivity and adoption rates. Adaptable solutions prioritize intuitive user interfaces and streamlined implementation processes.
The Future Beckons
The midmarket is on the cusp of a major transformation, and adaptable ERP solutions are at the heart of this revolution. By prioritizing flexibility, scalability, and affordability, these solutions address the specific needs of midmarket businesses.
So, business leaders, embrace the change, explore your options, and guide your company toward a future fueled by a truly adaptable ERP solution.
If you ever need someone to talk to about an ERP design for your specific needs and budget, shoot us a message.
To check out some of our Odoo implementations for mid-market clients in various industries, check out some of these articles:
1. Astra Auto Trust
2. Allnex
2. Carrefour
3. Aneka Tuna
5. Gojek
6. Pour un Sourire d'Enfant (PSE)
Want me to discuss something specific? Connect and message me on my LinkedIn page: www.linkedin.com/in/gasparddessy or my personal email at gaspard@portcities.net.