Odoo Is Like a Unicorn, How?

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All Odoo interested people must have heard the big news by now. For those of you who haven’t, well, Summit partners announced a big investment of €180M in Odoo. This was an undisclosed, unicorn sized company valuation, acquiring shares that belonged to XAnge, meaning they are now out of the big picture. Nevertheless, the news is still amazing and Odoo operating alongside Summit also means a bright future. Moving back to the €180M, this is a lot of money. Enough money to make Odoo stand out, but the founder of Odoo states “This is a lot of money. It’s great for our ego…but it won’t impact the company, or the community, as there will be no cash injected in the company.”

The most reoccurring question is why didn’t Odoo do a capital increase? The answer is simple; they did not need to. Having a growth of 60% each year makes Odoo enough profitable as it is. The CEO says he intends to keep most of the shares to help maintain the long term commitment to both the project and to the open source community. Why? Because Odoo would not have made it this far if it wasn’t for its open source business model.

Open Source: A Key Competitive Advantage

You can find a simple software like MailChimp or a complex whole software like SAP but they only cover one need. What to do when you want a better software covering multiple needs. That is where Odoo comes in, a complete software that is both simple and affordable. This is what makes Odoo different, the fact that it is not like every other software just targeting developers or system administrators. Instead, it includes marketing officers, inventory workers, project managers and even the finance and accounting department. The second best thing about Odoo is that it is an open source product, and we all love working with an open source, as it gives us the inner satisfaction that we are contributing to something useful. That inner advantage aside let’s look at the other two main advantages we get from an open source model.

The two competitive advantages we gain are as follows.

Low Customer Acquisition Cost

Cost of marketing everywhere nowadays is pretty expensive, amounting to about 30% of a company’s revenue. But let’s look at Odoos cost, what is it? Probably the best and cheapest you can get, Word of mouth. Now what makes this possible is the happy customers using Odoo, and there is about 7 million users. For a complex product in a B2B market this number is a big deal, it is huge compared to Oracle who has only 18,000 customers on NetSuite. Let’s look at some more breath taking figures. Odoo has over 100k leads per month, bearing in mind they have a limited marketing investment, and has a network of 4000 partners all around the world. Getting many “free quality leads” per month when marketing costs are high is a major competitive advantage, something that would not have been possible without our amazing open source community. All in all, this helps increase efficiency, which brings us over to our next point.

A Fast Development Model

Odoo has finished your headache of having to move back and forth from various platforms to manage all your business activities. In fact, it has bought everything to one place for you and made sure to make it affordable and easy to use. A combination no other company has been able to figure out and pull off together. Like we have already discussed above you can find both simple and complex software’s but none of them have the undermining combination that Odoo has to offer. What made this model fast was that it was able to crack the challenge other companies were facing regarding price and complexity. Being open source allowed them to work with communities all across the globe, in return getting tons of feedback and contributions allowing the company to evolve. And in addition, the community made 25,000 more apps making Odoo the biggest enterprise app store in the world.

What’s Next?

This exchange is just the beginning of a long relationship and is also proof of confidence from the market. However, this does not change anything for us, our focus remains on developing a great product. The main aim is to make this product available to a large number of companies, which is all that matters. Together with the community an amazing software has been built, but there is always room for improvement, always time to find more ways to help employees do more, in less time.

This is just the start of things.

 

Rolustech is an Odoo Expert firm and has completed several projects in Odoo CRM Migration, Customization, Implementation, and more. Contact us now for a FREE Business Analysis. We will be glad to assist you!

 

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