The choice is less about the software and more about how you pay for it and who controls it. ERPNext, for example, is open source under the GNU General Public Licence, so there is no fee per user to run it.
Cost
Licensed systems usually charge per user, per year. As you add branches and staff, the bill rises with them. With open source, you pay for implementation, hosting and support, but not for the right to add users.
Control of your data and system
With open source you can host the system where you choose and take your data and configuration with you. With licensed software, the vendor sets the terms for access, export and price changes.
Support
A licensed vendor supports its own product. With open source, support comes from the publisher and its certified partners. Ask any supplier who will answer when something breaks, how fast, and whether they work with the people who build the software.
When licensed software can make sense
- A parent company has standardised on one vendor worldwide
- A specialised industry product has no open source equivalent
When open source usually wins
- You expect the number of users to grow
- You want to shape forms, workflows and reports to how you work
- You want to avoid being tied to one supplier