Introduction
The purpose of this article is to show you, dear prospect or client, that we take seriously the task of ensuring that our collaboration with you will bring you a greater return on investment than the costs incurred. Choosing an ERP system is an important decision—ERP systems are rather not changed too often 😊. Since you are not yet an expert in Odoo ERP, there may be some costs associated with using Odoo ERP that you are unaware of—therefore, we see it as our responsibility to inform you about them from the very beginning.
The following list outlines various factors that will affect the total cost of implementing and maintaining Odoo in your company over the next five to ten years. When comparing offers for ERP systems, you can check whether other companies have provided you with a price for each of the following elements. Some elements may seem obvious, but we don’t know how much you know, so we prefer to write more rather than less.
General Costs
1. Odoo ERP Edition
The first step in implementing Odoo is deciding which edition is right for you: Odoo Community (open-source, LGPLv3 license) or Odoo Enterprise (proprietary license, with access to source code after payment). The choice between these two versions is significant because while the Community version is completely free, it lacks some features available in the Enterprise version, such as updates, mobile app or accounting features - only to mention a few. At Solvti, we guide our clients through this decision based on their ERP goals.
More about differences in Odoo Editions: https://www.odoo.com/page/editions
2. Odoo ERP License (Only for Odoo Enterprise Edition)
The pricing for Odoo Enterprise licenses can be found here. Whether you fall under the Standard or Custom plan depends on how you want to use Odoo. If your answer to any of the following questions is "yes," you will have to use Odoo Enterprise:
- Do you want to manage multiple companies in a single Odoo database?
- Will you be using scripts to automate some workflows in Odoo?
- Do you need to integrate Odoo with external systems?
- Do you need hosting other than Odoo Online? More under 4. Hosting bellow.
- Do you want to use custom modules or extensions?
- Will you use any third-party applications from the Odoo Apps Store?
Q: Can I have some users on the Standard plan and others on the Custom plan?
A: No, you cannot mix Standard and Custom plans within the same instance. Each plan is designed to meet different needs, so you'll need to choose the one that best fits your overall requirements.
3. Odoo ERP Implementation Services
Implementing an ERP system involves activities such as analyzing your current business processes, defining IT system objectives, configuring the system, installing modules, integrating with other IT systems, data migration, user training, risk analysis, and post-implementation support. This work is typically carried out by an implementation partner like Solvti. If you're reading this document, you're likely considering an Odoo ERP implementation with us, and if not, we encourage you to contact us—Odoo implementation is our specialty.
Talk to us to get a personalized quotation for implementation of Odoo in your company.
4. Hosting
You have five hosting options:
- Odoo Online (also called Odoo SaaS): Free of charge, but only available with Odoo Enterprise Edition (both Standard and Custom plans).
- Odoo.sh: Odoo's cloud service with dedicated features for Odoo. Only available for Odoo Enterprise Custom Plan. Not available for Odoo Community nor Odoo Enterprise Standard. The hosting cost varies, but typically ranges from €60-80 per month - independent of amount of Odoo Licenses. More about its features and pricing: https://www.odoo.sh/
- On-Premise: Installation on your server, available for Odoo Community and Odoo Enterprise Custom, but not for Odoo Enterprise Standard.
- Other Cloud Providers: You can host Odoo on almost any cloud service. This option is available for Odoo Community and Odoo Enterprise Custom, but not for Odoo Enterprise Standard.
- Solvti Hosting: If you require hosting but prefer not to use Odoo.sh, we offer our hosting services. This option is available for Odoo Community and Odoo Enterprise Custom, but not for Odoo Enterprise Standard. Interesting when using Odoo Community, you want to ensure your data stays in European Union, you need a highly available Odoo database, or you have some special integration needs, that are not supported by Odoo.sh.
Q: If Odoo Online hosting is free, why would I ever want to use any paid hosting?
A: Odoo Online is limited—you can't use custom developments, third-party modules, or the Odoo Community Edition. Paid hosting provides the flexibility and customization you might need.
Other costs / indirect costs
5. Odoo Version Upgrades
Odoo S.A. releases a new version of Odoo every year. We recommend upgrading your Odoo database every 1–3 years to benefit from the latest features and improvements. Moreover, Odoo only supports the last three versions, meaning older versions do not receive security updates.
If you're not using Odoo Online, migration is a manual process, often performed by the same company that implemented Odoo for you. The migration process can take anywhere from a few hours to several working days or (for large Odoo implementations) to several months, depending on the extent of customization and database size.
To minimize migration costs:
- Implement as few code changes as possible and limit the use of external modules.
- Migrate regularly, ideally every 2–3 years.
- If you're using Odoo Enterprise, migration will be cheaper than with Odoo Community.
6. Purchasing Modules from the Odoo Apps Store
Odoo offers one of the largest app stores worldwide: Odoo Apps Store. Some of these modules are paid, and purchasing one will involve both the cost of the module and any associated installation costs.
Installing a module might incur additional expenses, especially if conflicts arise between the newly purchased module and existing ones, which would require a developer to resolve. Moreover, each module adds to the maintenance burden of your Odoo instance, meaning you'll not only pay for the installation but potentially also for future migrations.
Q: If I purchase a module from the Odoo App Store now, will I need to pay for it again when I migrate to a newer version of Odoo?
A: Yes, modules from the Odoo App Store are purchased for a specific version. This means that when you migrate to a newer version in a few years, you will need to pay the module creator again to receive an updated version compatible with the new Odoo release.
7. Additional Paid Services in Odoo
While all Odoo modules and apps are included in one price as detailed here, Odoo offers several paid services provided by third parties, such as AI-driven invoice digitization, SMS sending, or lead generation. These services typically operate on a credit system, where each service, like a single invoice digitization, costs one credit. Pricing of those services: https://iap.odoo.com/iap/all-in-app-services.
Additionally, some modules available in the Odoo Apps Store or custom-built ones may come with extra usage costs. Always ask whether a third party module's cost is a one-time fee or a subscription.
8. User Support & System Administration
An ERP system is only as good as the data entered into it and how you maintain it. We often advise our clients to designate a person to maintain Odoo and educate employees on proper data entry practices. If you haven't had an ERP system before, this may be a new role in your company, representing an additional cost.
For small businesses, this might only require a few hours a month, but larger companies may need one or more full-time staff to act as the first line of support for employees—answering questions, managing permissions, merging duplicate entries, importing and exporting data, managing email templates, and print layouts, etc.
Solvti can take on some of these responsibilities if you're interested - especially when it comes to User Support. Learn more here.
Q: Is it really that important to keep my Odoo database organized?
A: Absolutely. An ERP system is meant to serve you, making your business operations smoother, not more complicated. To achieve this, it's crucial to clearly define your business goals and the reporting / controlling data you need to manage your company effectively. This will guide the selection of modules and how you use them. When employees understand the purpose and value of maintaining an organized system, they’ll be more motivated to keep it in order.
Training is also key! Without proper training, employees tend to resist using the system, claiming they don't have time to update it. With good training, they’ll not only use Odoo enthusiastically but will also discover new features, becoming Odoo ambassadors within your company. This reduces the need to pay external firms for implementing additional modules.
9. System Customizations and Custom Module Development
As Worlds largest open source ERP system, Odoo ERP provides full access to the its source code, offering limitless possibilities for customization to meet your needs. These changes can be made by your IT staff members or outsourced to external firms. Typically, payment is made either hourly or upfront for a specific change or function in the system.
However, it's crucial to be cautious and minimize development where possible. At Solvti, we've encountered Odoo instances so heavily customized that they cannot be migrated to new versions. While it's not that migration is impossible, the cost becomes prohibitively high relative to the benefits of upgrading.
For larger companies, it might be worth having in-house developers to make such changes, but beware—developers often implement requests without considering the long-term business implications. Every change should be evaluated in terms of the immediate development cost and the ongoing maintenance cost, which often hovers around 10-20% annually of the initial development cost. Some firms even structure their offerings this way: you pay once for the module and 20% annually for migration and maintenance.
When you partner with Solvti, you receive a dedicated Solutions Consultant who helps you create a 5-10 year IT plan aligned with your company's business strategy. Often, we advise against certain Odoo customizations because we always focus on what's best for the client in the long run.
Conclusion
By understanding both direct and indirect costs, you can make a more informed decision about implementing Odoo ERP in your company. If you'd like to get a detailed estimate of these costs tailored to your specific needs, feel free to reach out to us. We're here to ensure your investment in Odoo ERP delivers the best possible return.
While this article has focused heavily on costs, the real excitement in discussing Odoo lies in exploring what it can bring to your business and the tangible results it can help you achieve. When partnering with Solvti, we always start by identifying the business goals, KPIs, and financial outcomes you want to enhance through your Odoo implementation. With these two components—understanding costs and setting clear objectives—you’ll be well-equipped to calculate the return on your Odoo ERP investment and make the most out of your new system. We're here to help you not just implement Odoo, but to truly transform your business with it.
