ERP Software Advice recently put together an analysis on Consona’s recent aqcuisition of Compiere. In their report, Why the Technology Matters – An Analysis of Consona’s Acquisition of Compiere, they suggest that while most software buyers don’t care about underlying technology, they still want software companies to:
- continue to add new features and fix bugs quickly;
- evolve to the next generation of technology; and,
- remain “strategically viable,” not just financially viable.
Ironically, underlying software technology is a huge determinant of an vendor’s ability to deliver on these three requirements. This is the very reason Consona bought Compiere.
“It’s not about the open-source business model or Compiere’s customer base. Instead, it’s all about the technology,” says author Don Fornes.
This statement is further supported by a quote from Consona CTO Steve Bailey:
“Compiere is the world’s leading open-source ERP solution and the products are brilliantly architected. They run on a fully open-source stack (e.g., Java, Linux, JBOSS, Postgres), utilize a browser-based AJAX UI based on the Google Web Toolkit, and are fully operational either on premise or on a utility cloud platform like Amazon…”
So why is this relevant for software vendors and buyers? Because there is a big shift underway from client/server systems installed “on premise” to cloud-based or software-as-a-service systems that are hosted in a secure data center and accessed through a web browser. Moreover, the open source movement is producing underlying technology that is not only free, but increasingly really good stuff. Software vendors that don’t make the transition will wither on the vine.
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