When Odoo announced its dual licensing model in 2015, many open source advocates were disappointed. It felt like watching a trusted ally "sell out" to commercial interests. They missed a crucial truth: sustainable open source needs more than code.
It needs a solid foundation for growth.
If you dismiss Odoo as "not really open source," you might be missing what it takes to build an open-source product that can compete with ERP giants.
The Uncomfortable Truth About Open Source
Let's be honest: most successful open-source projects today use some form of hybrid model. GitLab, Elastic, and MongoDB balance community editions with paid tiers. Why?
Ideological purity doesn't pay developers' salaries or fund innovation.
The real question isn't "Is it 100% free?" but rather "Does it preserve the freedoms that matter?"
What Odoo Actually Offers
The Community Edition is genuinely free and open:
- LGPL v3 licensed [OSI-approved, legitimately open source]
- Complete ERP functionality—not a crippled demo
- Full source code access for modification and extension
- No vendor lock-in, ever
Yes, Enterprise modules are proprietary and require a commercial license. But (and this nuance matters) their source code is viewable. You can read it, understand it, and extend it. It's not a "black box" closed-source system; it's "source-available under commercial license."
Why This Model Had to Happen
Odoo's founder, Fabien Pinckaers, was brutally honest when announcing the change: the old partner-only model generated limited funds for R&D. That's pocket change compared to what SAP or Microsoft spend monthly. To build something that could genuinely compete, Odoo needed a sustainable revenue model.
The results demonstrate real business impact:
- Over 13 million users worldwide are benefiting from continuous innovation
- A thriving ecosystem of 7,500 partners building industry-specific solutions
- 40% annual growth and €5 billion valuation funding for further development
Why Open Source Advocates Now Champion This Model
Here's what convinced even the skeptics: Enterprise revenue directly funds Community development. Every paying customer subsidizes the free version that startups and nonprofits rely on. It's not abandoning open-source principles—it's ensuring their survival.
More importantly, this model delivers what matters:
- Real ownership: Your data and customizations remain yours
- Full flexibility: Modify anything, integrate everything
- Community power: Active development from contributors worldwide through the Odoo Community Association (OCA) and other channels
Making Business Sense of Your Options
Let's cut through the philosophy and look at what matters for your business:
The Community Edition Path
- Zero licensing costs, forever
- Complete control over your system
- Access to hundreds of pre-built modules via the Odoo Community Association (OCA)
- Freedom to switch partners or bring development in-house
The Enterprise Edition Advantage
- Advanced features that transform operations
- Official support and regular updates
- Still more flexible than proprietary alternatives
- Direct support for continued development
Both paths free you from traditional ERP limitations: control your data, own your solution.
Many businesses choose Enterprise for its advanced features: integrated manufacturing planning, multi-location retail management, and automated financial consolidation across companies.
But the real power of Odoo's approach lies in its flexibility: Those who want to go far can build with the Community Edition. Those who want to go fast can work with an Odoo partner like Portcities. And those who want both? They can start with Community and add Enterprise as they grow.
The Implementation Truth
Let's address the elephant in the room: Free software doesn't mean free implementation. Free also doesn’t mean effortless.
Odoo Community Edition is 100% free and open source, but successful ERP implementation is first and foremost a human project.
Whether you choose Community or Enterprise, you'll need:
- Professional configuration to match your business processes
- Change management to ensure smooth adoption
- Training to empower your team
- Guidance to optimize your workflows
This isn't a 'gotcha.' It's what makes the difference between a failed and a successful installation. The software may be free, but expertise transforms it into business value.
The Beautiful Paradox
Here's the beautiful paradox: by balancing open-source principles with business sustainability, Odoo serves over 13 million users worldwide who've chosen greater control over their software.
The model succeeds by turning limitations into advantages: Enterprise revenue powers continuous platform improvement, while open-source transparency enables immediate system adaptation.
Next time someone dismisses Odoo as "not really open source," remind them: the best way to protect open source is to make it sustainable. Odoo didn't betray open source principles; it made them work.
Your Next Move
So yes, Odoo is open source. More importantly, it's open source that works: it serves businesses of all sizes through a global partner network.
The question isn't whether Odoo is "pure" enough. Instead, ask yourself if you're ready to join the millions discovering what true software freedom means for their business.
Ready to explore how Odoo can work for your business? Contact Portcities to learn more about your options.