Odoo ERP – Open Source Overtakes the ERP Giants

ERP systems are the backbone of modern enterprises. They connect business processes such as accounting, human resources, sales, and production on a single platform. For decades this market was dominated by vendors like SAP, Microsoft Dynamics, and Oracle. These systems were considered without alternative, even though they came with high licensing costs, complex implementations, and strong dependencies.

In recent years, however, an open-source project has been reshaping the market: Odoo. With its open architecture, modular structure, and global community, it is steadily gaining significance. Odoo demonstrates that open source is not only suitable for small applications but can also conquer the demanding ERP market.

This article explains why Odoo, with its philosophy, is increasingly overtaking traditional vendors, what advantages it brings to businesses, and why hosting locations in Switzerland, Germany, and Austria – as offered by peaknetworks – make a decisive difference.

The History of Odoo

Odoo started in 2005 under the name TinyERP, a lightweight solution for small businesses. It was later renamed OpenERP to emphasize its role as a comprehensive open-source ERP system. With growing popularity and functionality, it was rebranded to Odoo in 2014.

Today Odoo is one of the most widely used open-source ERP systems worldwide. It is developed by the Belgian company Odoo S.A., which offers both the free and open Community Edition as well as the commercial Enterprise Edition with extended features.

The global community is a key success factor. Thousands of developers and integrators worldwide contribute modules, improvements, and translations. This open development model accelerates innovation and ensures that Odoo stays closely aligned with real business needs.

With more than 13 million users, Odoo has reached critical mass, making it a serious competitor to traditional ERP giants

The Open-Source Philosophy in the ERP Market

Transparency

Unlike proprietary systems, the source code of Odoo Community is freely accessible. Companies can see exactly how the system works and adapt it without restrictions.

Independence

While traditional ERP systems often lead to vendor lock-in, where one provider dictates all the rules, Odoo allows full independence. Businesses can freely choose between hosting providers, develop their own modules, or engage external integrators.

Collaborative Innovation

The strength of Odoo lies in its global developer community. Thousands of modules cover a wide spectrum – from industry-specific extensions to highly specialized integrations. Emerging trends such as AI, mobile applications, or automation quickly find their way into the system.

Contrast with Proprietary Systems

SAP, Microsoft, or Oracle follow centrally controlled product strategies. Changes are slow and costly. Odoo grows organically and dynamically, driven by the actual needs of its users.

Features and Modules of Odoo

Odoo is modular. Companies can start small and expand step by step. Key modules include:

Accounting

The accounting module is at the core of any ERP system, and Odoo offers comprehensive features here. Invoices can be created and posted automatically, payments reconciled directly via bank feeds or import files, and dunning and tax logic are integrated.

Multi-currency support is particularly valuable for international businesses, as exchange rates are updated automatically and applied correctly. Standardized reports such as balance sheets, profit-and-loss statements, and tax returns are available at the click of a button. Tight integration with purchasing, sales, and inventory ensures accounting data flows automatically, reducing errors and manual work.

CRM and Sales

Odoo’s CRM is far more than a contact database. It covers the entire sales process – from lead generation through quoting to deal closing and invoicing. Leads can be captured automatically from forms, emails, or campaigns, giving sales teams a complete overview of their pipeline.

Its value lies in the integration with other modules: a quote becomes an order without duplication, invoices are generated automatically, and inventory updates instantly. Dashboards and analytics provide real-time insights into conversion rates, forecasts, and individual performance. The CRM becomes a control center for the entire business.

Purchasing, Inventory, and Manufacturing

The interaction of these modules makes Odoo especially strong for manufacturers. Purchasing can automatically generate proposals when stock levels drop or production needs arise. Supplier management and pricelists are included.

The inventory module works in real time. Every receipt, transfer, or delivery is tracked instantly. Serial numbers, batch tracking, and expiration dates are supported, as are multi-warehouse scenarios.

Manufacturing benefits from bills of materials, routings, and shop floor feedback. Production orders can be triggered automatically by sales or stock rules. Quality checks can be built into workflows, ensuring deviations are detected early. Together these modules cover the entire supply chain.

Human Resources

The HR module covers the full employee lifecycle – from recruitment to personnel files, time tracking, absences, and expenses. Leave requests are digital and workflow-driven. Timesheets feed both payroll and project costings.

Expense reports can be photographed, uploaded, and booked automatically. Integration with accounting ensures proper allocation. Depending on the country, payroll functionality can also be included. This transforms HR from paper-heavy administration into a digital, efficient process.

Project Management

Odoo’s project management is tightly integrated with sales and support. Tasks can be created from sales orders or tickets, managed via Kanban boards, Gantt charts, or calendars, and tracked with built-in timesheets.

Combined with the invoicing module, service projects can be billed directly from logged hours. This gives businesses full visibility from quotation through project execution to billing. Teams benefit from less duplication, clear accountability, and transparency across budgets and progress.

E-Commerce, POS, and Marketing

Odoo provides a fully integrated e-commerce solution. Unlike many standalone shop systems, its webshop is directly linked with inventory, pricing, taxes, and accounting. Orders flow into the ERP without interfaces, stock levels adjust in real time, and invoices are created automatically. Many dedicated shop solutions cannot offer this seamless integration, leading to duplicate data or errors.

Online shops are now the main or even sole sales channel for many industries. Customers expect 24/7 availability, real-time stock, and smooth fulfillment. Companies without a professional online store lose ground to competitors. With Odoo, the shop is natively embedded in the business system – from product creation to financial accounting.

Additional marketing modules cover newsletters, campaigns, landing pages, and social media. The POS module connects brick-and-mortar stores with e-commerce, creating a true omnichannel experience that strengthens customer loyalty and operational efficiency.

Comparison with Traditional ERP Vendors

Odoo vs. SAP

SAP dominates the ERP market, but is expensive and complex. Customization can take months or years. Odoo offers comparable functionality with more flexibility and lower cost.

Odoo vs. Microsoft Dynamics

Dynamics is tied closely to Microsoft Azure, creating dependency on a US cloud provider. Odoo can be hosted anywhere – on-premises, with a European provider, or in the cloud.

Odoo vs. Oracle Netsuite

Netsuite follows a pure SaaS model, giving full control to the vendor and storing data in US clouds. Odoo breaks this by allowing self-hosting and European hosting.

Total Cost of Ownership (TCO)

SAP, Microsoft, and Oracle often incur high total costs through licenses, maintenance, and consultancy. Odoo remains significantly cheaper, especially for SMEs.

Data Sovereignty and Legal Frameworks

ERP systems hold highly sensitive data: financials, customers, suppliers, production. Where data is stored matters.

GDPR

The EU’s General Data Protection Regulation requires companies to maintain full control of personal data.

Schrems II

The 2020 EU Court of Justice ruling invalidated the Privacy Shield agreement with the US, putting transatlantic data transfers on shaky ground.

Patriot Act and Cloud Act

US authorities can access data held by US companies, even if stored in Europe. For DACH businesses, ERP data on US clouds is at constant risk of exposure.

Sustainability and IT Infrastructure

Sustainability is becoming a competitive factor alongside data protection. Hyperscalers consume vast energy, often with unclear standards.

Regional providers like peaknetworks operate energy-efficient data centers, reduce data travel, and pursue transparent sustainability. Businesses focused on ecological responsibility can align their IT with these values.

peaknetworks Odoo Hosting

For companies seeking Odoo’s benefits while securing data sovereignty, peaknetworks Odoo Hosting is a clear solution.

Hosting in Switzerland, Germany, and Austria

All data stays in the DACH region under European law only.

No US Jurisdiction

As peaknetworks is independent of US companies, neither the Patriot Act nor the Cloud Act apply.

GDPR Compliance

The infrastructure is fully GDPR-compliant, ensuring legal certainty.

Sustainability

Eco-friendly data centers ensure IT operations are not at the environment’s expense.

Flexibility and Support

Clients retain full control of instances, backups, and integrations. Support is provided directly from the DACH region.

Conclusion: Odoo and peaknetworks as a Future Model

Odoo proves that open source is a serious ERP alternative. Flexibility, transparency, and lower costs convince more and more businesses.

Combined with peaknetworks Odoo Hosting, the advantages grow: a modern ERP system with full data sovereignty, legal security, and sustainable infrastructure.

The result is a future-proof model for DACH businesses – independent of US providers, free from legal risks, adaptable, and environmentally responsible.