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Proprietary software vendors drive on average 25% of their revenues from Licenses. How does OpenERP do without license revenues? OpenERP revenues are indeed services based.
The software can be downloaded for free, but we will never claim that deploying an ERP can be done for free. It requires services from OpenERP and our partners. In order to secure the right level of support to our customers, we offer Online and Onsite subscriptions. Online Subscriptions is a monthly fee which allows our customers to use the Software in a SaaS mode. Onsite subscriptions is an annual fee which provides bug fixing, security alerts and migration services for customers who wish to deploy the software on their premise.
Our Open Source model also allows us to maintain a lower cost structure thanks to:
The absence of license revenues is more than offset by the benefits driven from the Open Source model