Everyone knows that Enterprise Software is bloated with un-necessary fat. And the fat shows clearly in the way sales happens. In the latest book by Venture Capitalist Ben Horowitz, he shares a story where in order to please a customer, they went and acquired a company, whose product was liked by the purchasing manager, so that they could bundle its software with theirs and win the contract. So clearly politics wins and the product is something that is incidental. I assume a whole bunch of million dollar deals happen like this. I have personally heard a story from from a smart sales person who sold a software worth Rs 1cr to a very large Indian corporate house and that software barely was ever used. I knew he was not bluffing because the purchaser, a high ranking corporate manager was standing next to him. Relationships sell, not products.
Contrast this with Consumer Software Products. Apple sells a beautiful piece of hardware (a computer + phone) and a complex operating system with amazing design for just $600 and makes 39% margin on it. I am sure the software that goes in the iPhone is worth thousand times more and is infinitely more complex than the piece of crap sold by Ben Horowitz or the smart sales guy. The difference is only in the volume. Given enough volume, great software need not be bloated or expensive. This gap between consumer and enterprise software is what ERPNext plans to bridge.
With ERPNext, we are going one step further. Not only are we pricing the product way below the market but also giving it away for free. To remove the fat, we did away with our entire sales team and started to make it easier for our customers to download and use our product for free. What this has done is that it has given us traction and a community. This community is our marketing engine that has consistently taken the ERPNext brand forward and we take pride when ERPNext is proposed as one of the “mature” open source ERP on third party forums. Whats more, this strategy has attracted sponsors who have volunteered to pay us money to accelerate the development.
Being an Open Source product, opens up opportunities that are usually not accessible to proprietary products. Software vendors and partners are already bundling ERPNext along with their offerings and plugins are being built. As the publisher, our focus is on continuously improving the quality of the product and helping the community with deployments and functional help. We so much diverse feedback, it is only natural that the product keeps improving.
To take this platform to the next level, we are hosting a conference in Mumbai on September 25th where we plan to bring together users, developers and partners to brainstorm ideas and identify opportunities growth. We would also like to invite the larger Indian software ecosystem to participate in this community driven and open source project.
To register for the conference, please go to the ERPNext Conf. site.
