The purpose of this post is to help you calculate the cost of hosting an enterprise quality iDempiere instance. Here is an iDempiere hosting cost calculator where you can plug in the features you want, and the spreadsheet will estimate your monthly cost. The cost ranges between $8 per concurrent user per month for small installations to $3 per concurrent user per month for larger installations.
If you are comparing Open Source ERP to proprietary ERP, please make sure you bring this calculator along with your iDempiere demo to the negotiating table. You will not find a proprietary ERP pricing table like this one…
The cost calculator outlines the cost and count of each server based on your prescribed complexity of the installation. For example, you get to choose if you want a firewall, test environment, hot-standby replication, or advanced monitoring. The calculator will determine if you need load balancing and connection pooling based on the requested concurrent user setting.
I hope this helps. To learn, configure, audit and scale iDempiere, join the ERP Academy.
Assumptions and Details
- The cost of servers is derived from Amazon’s EC2 pricing for Linux in Virginia.
- I assumed 100% utilization for any given server.
- I took the cost of the server (upfront and monthly costs) and averaged it over three years to derive an effective monthly rate.
- I used the Enterprise iDempiere Hosting architecture discussed here.
- I included the typical ancillary tools needed to keep iDempiere stable, scale-able and secure.
- I included the cost of EC2 servers, EBS storage, S3 storage. I did not include the cost of data transfer.
- I conservatively assumed each user session uses 300MB and only 75% of a server’s memory is available for session management.
- I conservatively assumed 10 concurrent users per core.
Important Note about Costs
The cost calculator shows a “budgeted” value (not an “estimated” value). The budget value shows the cost that will help guarantee success is almost all cases; where as an estimate value is the cost that is expected given known details and concessions. The estimated cost will always be less than the budgeted cost.
Let’s apply this concept to the below 35-concurrent user example. This example calls for a total of 7 servers: a load balancer, a dedicated services machine, a dedicated database server, two WebUI servers, a monitoring server and a test server. This setup should “guarantee” high performance success for 35-concurrent users; however, the question is “can iDempiere perform well with fewer servers?” The answer is yes. One might argue that a company could get away with just 3 servers: a production database server, a production WebUI server and a test server. The total monthly cost for these three servers is about $90 per month. This is a fraction of the below $200 budget per month.
I like expressing projects and details in terms of “budgets” instead of “expected” values. This helps set appropriate expectations – something that just about everyone appreciates.
35 Concurrent Users
100 Concurrent Users
200 Concurrent Users
Maximums and Minimums
This calculator is best used for installations that range from 20 to 400 concurrent users. It is possible to scale this architecture beyond 400 concurrent users; however, to really break the barrier (say 1000+), we will need to change iDempiere’s architecture to take better advantage of database read replica instances. In today’s world, iDempiere can only use one database instance. There are tricks to emulate a ‘single write – multiple read’ environments; however, each trick has its drawbacks.
The overwhelming majority of data read by iDempiere is stale data – meaning that the data was created in a previous session and there is no expectation that the data has changed in the few milliseconds that it takes for a read replica database to update to a master write database. By making iDempiere read smarter and allowing a pool of iDempiere WebUI application servers to read from a pool of database read replicas, the database write master can be isolated and optimized for write-centric operations.
The concept of making a Web application read-replica aware has become common over the last few years; however, ERP and accounting systems are more complex. The extensive use of temporary tables to optimize complex and high volume calculations in ERP systems makes reading from replicas more challenging.
I look forward to witnessing the blazing performance of the first true 2000+ concurrent iDempiere Open Source ERP system.
What is the best way to Learn iDempiere and ADempiere?
I teach an on-line class that covers how to learn, configure and audit open source ERP. It uses iDempiere as the reference ERP. Here are the course frequently asked questions. I have learned much over the last fourteen years, and I have much to share. I look forward to seeing you there!!
Why consider Open Source ERP?
Open source ERP gives you every opportunity to prove or disprove its ability to support your company’s ERP needs on a timeline that satisfies your organizational needs. With open source ERP, you do not face the same financial constraints nor do you face the same conflicts of interest as with commercial ERP. Instead, you invest in the appropriate skills and knowledge for your people and processes. Best of all – if open source ERP cannot solve your company’s needs, you can safely justify spending the additional $2K to $5K per person per year for life of your commercial ERP to help drive your organization’s success.
Open Source ERP Round Rug Effect
Open Source ERP has what I call a “Round Rug Effect”. If you were to liken the ERP evaluation process to a 10′ x 10′ room, the story would go something like this:
- Oracle, SAP, and Microsoft are a 10′ x 10′ ERP rug in a ten by ten foot room. They cover the room nicely. You will be hard pressed to find a feature or a use case that they do not cover.
- Open Source ERP is like a 10′ round rug in a ten by ten foot room. It will cover the vast majority of the room; however, it will leave the corners bare. The questions are: “Do you live and operate in the corners?” or “Is open source ERP good enough?”. For most, the answers are “sometimes” and “yes”.
If you are in the ERP evaluation mode, you should ask yourself “Should I include open source ERP in my evaluation process?” If you are less than $300M USD revenue, your answer should probably be yes! This answer comes from these concepts:
- Pillars of Cost – Since open source ERP is free, that means that all the cost of proprietary ERP should be allocated to the corners. If you use height to illustrate this allocated cost, the corners turn into tall pillers of cost.
- Cost of Innovation – At first look, the price tag of free open source ERP is the most appealing benefit; however, this benefit soon becomes overshadowed by the flexibility of open source ERP. If organizational leaders take just some of the cost that would otherwise be spent on Oracle or SAP, and they invest it back into the organization’s skills and knowledge of how ERP works, operational efficiency will never look the same again. If you know how to change the system for the better, and you know it will work. Why would you not?
- Monday to Monday Cycle – Business leaders drive innovation in a company. This innovation is no more apparent than in the traditional Monday morning business meeting where a CEO comes in and paints a picture of the next greatest thing. His or her next comments are “Will it work?” and “Make it happen!”. Open source ERP helps your business and IT teams say yes more often. You are no longer completely dependent on a high-priced Oracle Integrators. You are no longer dependent on spending 18% every year to Oracle for software that you have little control over. Your team applies its knowledge of the system and the knowledge of its world-wide resources to create a proof of concept that paints the real picture the following Monday.
- Right Pay Grade – Open source ERP puts the right tools in the right person’s hands at the right pay-grade. there is little more wasteful that paying a $150/hr integrator for something a Jr IT professional should be doing. Open Source ERP removes the artificial barriers that exist in proprietary ERP.
- ERP for Everyone – User licenses/seats are no longer a consideration. This point cannot be stated strongly enough. At first look, you might think this point is about saving money. It is much more than that. You now have the freedom and flexibility of allowing everyone in your company to interact the system that drives your operations. You simply assign the right roles to the right people to give them access to the appropriate information.
ADempiere vs iDempiere vs Openbravo vs Compiere
The ADempiere, iDempiere, Openbravo and Compiere environments are amazingly similar. iDempiere came from ADempiere. ADempiere and Openbravo came from Compiere. Compiere came from Jorg Janke. Jorg came from Oracle. As a result, iDempiere and ADempiere have much in common with Oracle’s ERP in terms of the financial feature set.
This is both good and bad. Good because iDempiere and ADempiere are quite capable to help a company grow beyond $500M USD. Bad because they tend to be more complex in that they account for multiple languages, accounting schemas, currencies, calendars, costing types, costing methods, etc…. If you are a growing organization, and you need a system that will grow with you, and you have the right internal talent/resources, iDempiere or ADempiere will be a big asset for you.
The biggest difference between these products is that ADempiere and iDempiere are pure open source. ADempiere and iDempiere make all feature available for free. Compiere and Openbravo hold back features behind a commercial or paid license.
Here is an article that discusses the differences between iDempiere and ADempiere.
iDempiere and ADempiere vs Odoo
iDempiere/ADempiere (iD/AD) and Odoo (formerly OpenERP) approach ERP from two very different directions. Odoo comes out of the box with very simple options. If you are coming from QuickBooks, and you need a simple ERP system help you manage your business, Odoo will look and feel comfortable.
iD/AD comes out of the box with every feature installed and configured to run a $200M+ USD business. If your business is growing rapidly, and you are willing to invest the time to learn an enterprise accounting system, then iD/AD will give you confidence.
Which one is best for you depends on your internal talent, growth and business complexity. Here is a post to help you learn more.