A Step-by-Step Guide to Estimating Your ERP Budget for Odoo Implementation and Migration
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Agitech’s Expertise and Mission
At Agitech, we’ve built a deep understanding of Odoo and have become experts in its implementation. Our team of certified consultants and developers has successfully implemented Odoo for clients across a range of industries, including construction, manufacturing, retail, and services. Given our extensive experience, we are well-positioned to discuss the real costs and considerations involved in an Odoo implementation project.
We believe that our role goes beyond just delivering Odoo solutions; our mission is to educate our clients and prospects about what an ERP project really entails. Many businesses are attracted to Odoo’s competitive license prices but are unaware of the broader scope of what it takes to implement an ERP system strategically. This guide will help you understand the different components of an Odoo project and what you should budget for.
Key Benefits of Odoo
Odoo is an all-in-one business management software that covers nearly every aspect of a company’s operations: CRM, accounting, manufacturing, inventory, HR, project management, and more. Instead of juggling multiple tools, Odoo centralizes everything, helping companies streamline processes, improve data accuracy, and enhance productivity.
Here are four key benefits of Odoo:
- Pay-As-You-Grow
Odoo offers a flexible pricing model, meaning you only pay for the user you need. For example, a startup may initially use Odoo for 1-2 person in the team. As the business grows, it can gradually add users. Access to all Odoo applications are included in the price. - Fast Implementation
Unlike traditional ERPs that take months (or even years) to deploy, Odoo can be implemented quickly, especially when using its standard modules. For example, we recently implemented Odoo for a small retail business in under three months, giving them immediate access to streamlined sales, inventory tracking, and customer management. - Seamless Integration
Odoo’s API allows easy integration with other software solutions. For instance, a client of ours in the e-commerce sector integrated Odoo with Shopify, enabling automatic updates between their inventory and online store. This eliminated manual entry and reduced errors. - Wide Scope of Applications
With more than 80 business apps, Odoo covers nearly all business functions. For example, a manufacturing company can use Odoo for production planning, quality control, and inventory tracking, while a professional services firm can benefit from its project management, CRM, and invoicing tools.
The Downsides of Odoo
While Odoo is powerful, it is not as specialized as some dedicated SaaS tools that focus on a single function. It’s important to understand this trade-off. Odoo aims to cover 80% of your needs across multiple functions but may lack the depth of specialized tools in niche areas.
For example:
- Odoo CRM works well for most businesses, but if your company is focused heavily on lead generation and advanced sales automation, you may find that dedicated tools like HubSpot or Salesforce have more advanced prospecting features.
- Odoo Email Marketing is functional and allows you to send newsletters and track open rates, but for businesses that need deep automation features, tools like Mailchimp or Brevo might offer more advanced functionality.
Essentially, when you choose Odoo, you’re opting for integration and breadth over deep specialization. This is a great trade-off for companies seeking to manage all their operations in one place, but it’s something to consider based on your specific needs.
Understanding the True Cost of Odoo Implementation
Many companies are drawn already came accross Odoo very attractive license prices and marketing billboard 🙂
, but there’s more to consider when planning for an ERP implementation. At Agitech, we believe in full transparency and educating our clients about the realities of implementing a system as complex as Odoo. Below, we’ll explain the four key budget components you should consider when planning your ERP implementation.
Should you be willing to know more about hosting and Odoo license, you may read our article about Odoo edition, version and hosting.
Odoo Implementation Cost Matrix
| Cost Type | Description | Hours/Cost | Example Use Case |
|---|---|---|---|
| 1. Implementation Costs (CAPEX) | |||
| Basic Implementation | Standard Odoo features with minimal customization or data migration. | 50 hours | Small service or product based company with CRM and invoicing needs. |
| Small Business Implementation | Full standard implementation including one complex app (Production, Inventory or Accounting) with studio (light customisation) and more sophisticated data migration. No development. | 100 hours | Service , production or product trading business with basic accounting. |
| Full ERP Implementation | Complex data migration, developments, and more complex app standard implementation. | 200 hours | Manufacturing company using MRP, inventory management, etc. with full accounting. |
| Large-Scale Implementation | Includes custom development, complex data migration, implementation of more complex application (production, accounting, inventory) | 250+ hours | Logistics or industrial company needing a enhanced business flow. A large scale implementation requires a business analysis before we start. |
| Integration with another software | Development required to connect Odoo to another software, coordinate inbetween parties, test and fine tune. | 100 hours | Any company willing to integrate its ERP with a industry specific software. An integration requires a technical and data analysis before we start |
| 2. License Costs, recurring costs (OPEX) | |||
| Standard Licenses | Standard features, no customization or multicompany. This type of license includes all Odoo applications. | €24.90/month per user, 19.90€/month the first year. | Company using basic Odoo functionality. |
| Custom Licenses | Allows customization (Odoo Studio), multicompany, required for Odoo SH or on-premise hosting. | €37.40/month per user, 29.90€/ month the first year. it is important to know that 75% of Odoo licenses are custom licences. As an Official Odoo Partner, we often take care of more demanding project raising this proportion to 90% of our clients. | Retail chain managing multiple stores and custom workflows. |
| 3. Hosting Costs, recurring costs (OPEX) | |||
| Free Hosting | Provided with standard license, no custom development or advanced integrations. | Free | Company using only standard Odoo apps without custom features. |
| Odoo SH Hosting | Required for custom development and easier access to database, backups, and logs. | €780/year, it is important to know that the majority of Odoo databases worldwide are hosted on Odoo SH. As an Official Odoo Partner, we often take care of more demanding project raising this proportion to 75% of our clients. | Manufacturing company with tailored MRP and production planning. |
| 4. Support & Maintenance, recurring (OPEX) | |||
| Corrective Maintenance | Ongoing support for troubleshooting and issue resolution. | Variable (Based on contract), most of our clients require inbetween 2 to 10 hours of support monthly | Company requiring continuous support for operational issues and improvement. |
| Evolutive Maintenance | System migration (e.g., every 2-3 years) for Odoo SH or on-premise installations. | Free/ €5 hours /migration OR may require additional costs based on the complexity of the developments. |
An Odoo project could potentially be a one time 50 hours of service attached to € 24.90/ month license for a basic project but chances are you might required more than that to cover your specif needs.
Finally, at Agitech we offer a range of possibilities to help our clients get their project funded by Sate Financial Aid (for Belgium and France) supporting innovation and digital transformation.
Key Takeaways
- Quick ROI: Odoo delivers immediate value by automating processes, reducing manual tasks, and improving efficiency.
- Cost-Effective: Odoo is often five times more affordable than other ERP systems like SAP or Microsoft Dynamics, making it a cost-effective choice for any size of company
- Strategic Investment: Even a 200-hour implementation, which includes customizations and data migration, remains affordable for a company with an annual revenue of €250,000 or more. This is a small price to pay for a solution that will run your entire business.
Ready to Explore Odoo?
If you’re considering Odoo, it’s important to approach it as a strategic investment. Our team at Agitech is here to guide you through every step of the process, ensuring that you get the most out of your Odoo implementation. Whether you’re a small business or a larger enterprise, Odoo offers the flexibility and scalability to grow with you.