Open source ERP is an enterprise resource planning (ERP) software system whose source code is made publicly available. The open source model allows companies to access the ERP system's code and customize it using their own IT department instead of paying extra for vendor customization services and licensing, as is typically the case with closed source programs.
For open source ERP software to be a viable option, companies must have an IT staff with considerable ERP development and programming skills. In-house ERP support capabilities are also important, as customizations are often not covered under vendor-operated software support.
Open source ERP can be particularly attractive to small to mid-sized businesses (SMBs) that want to upgrade or customize their ERP systems without paying large licensing and support fees.