Free ERP vs paid ERP: Main differences

Differences between free ERP vs paid ERP

The main difference between the two ERP is obvious: The price. And, as a general rule, free ERP is used by SMEs and companies that need little specialisation, while paid ERP is usually used by SMEs and large companies.

Comparisons on free ERP vs payment ERP are useful to know what you need. Having said this, you should know that, depending on the situation and dimensions of your company, you may be more interested in one option or another. In fact, not all SMEs may be interested in free ERP, for example.

At this point, however, it is worth noting that there are other important differences that are worth noting. The key features are:

1. Technical support

Free ERP is stripped of technical support, at least in its free version. It is true, however, that there are free ERP cases where the company offers paid upgrades or activations. When procuring ERP, technical support will always be included, although you will need to check the frequency and service.

This is important, especially if you cannot stop your activity. The rapid resolution of an incident is, in the end, a factor to be taken into account.

2. Maintenance service

The maintenance and hosting service is another feature that makes the difference between both ERPs. An open source free ERP, as a rule, will not incorporate these services. It is possible for this service to be incorporated into free versions of an ERP that is designed to allow you to make a purchase at a later stage.

Paid ERPs, on the other hand, do incorporate all services, which provides security in the event of incidents. Usually, this eventuality is already included in the fee or price you have to pay.

3. Available functionalities

The features available in a free ERP are usually basic. Not surprisingly, many companies offer the basic version so that you can check how it works and, and then decide whether to purchase paid services. In some cases, it may be sufficient for a self-employed person or a SME with very little activity, but there will always be some functions missing. Horizontality is, in this case, a major problem.

Paid ERPs, on the other hand, already offer a higher level of complexity. And this means that you can use them for different functionalities. You can, for example, activate different functionalities according to your needs, as is the case with SAP Business One, which allows you to work in areas such as Accounting and Finance, Inventory and Distribution, Reporting and Administration, Benefits and Customers, and Procurement and Operations.

4. Adaptation

The capacity for adaptation or modification that you have in ERPs is different depending on the type. For example, there are many free ERPs that are open source, allowing you to make modifications to suit your needs. In contrast, the vast majority of paid ERPs do not support this possibility, because they work with the vendor's code.

The truth is, however, that this possibility is only worthwhile if you are an IT professional or have an IT department. If not, you should be aware that this circumstance is of little relevance to you. The reality is that code adaptation is only worthwhile in exceptional cases.

5. Monitoring

This is another of the key aspects, which are not sometimes discussed. Free ERP is not subject to vendor monitoring, while paid ERP is. This is a double-edged sword, as they cannot control you, but neither can they help you as quickly as paid providers can.

As a result, it is important that you be very clear what you want when you decide on one model or another. This is something that, depending on the characteristics of your business or company philosophy, may be of interest to you.

What type of ERP do I need?

You should always consider what features your ERP should have. That said, the general advice we give is always to opt for a paid ERP, but there may be exceptions. So let's summarise:

When should I be interested in free ERP?

There are basically two cases in which you might be interested in free ERP. The first possibility is that your business is a family business, very small in size, or that you are self-employed and all you need is basic control of certain functions. The second case is that you are computer-literate and want to adapt the ERP, so open source ERP will be of interest.

When should I be interested in paid ERP?

The reasons to opt for a paid ERP are many and compelling. The key features are:

1. You can activate different ERP modules according to what you need. This is important because the needs of the company may vary depending on the situation.

2. You will have a quick response to any type of incident. Providers usually have a dedicated support team to troubleshoot problems. This will, in practice, save you time and money.

3. Updates and maintenance are included, so you won't have to worry when they are applicable. One of the problems with free ERPs is that, in the absence of updates, the likelihood of cyber attacks is multiplied.

4. The implementation will be monitored by the provider, which will make it much simpler. This is crucial, especially if you are starting.

5. These tools are usually safer, with the supervision and control of the provider.

For all these reasons, paid ERP is a good option for all types of businesses, large and small. When comparing free vs. paid ERP, the latter is clearly preferable.

Conclusion

The differences between free ERP vs. paid ERP are important. That's why it pays to have a reliable provider who can provide you with practical solutions. Looking for a verified SAP ERP? In SEIDOR Business One we have different products that are tailored to the needs of all types of companies.