OpenERP was an open‑source ERP platform that laid the foundation for what is now known as Odoo ERP, a modern, all‑in‑one business management suite. It started as TinyERP in 2005 and rebranded to Open-ERP in 2008 before evolving into Odoo in 2014 to reflect its broader scope beyond traditional ERP.
This guide explains what OpenERP is, how it evolved into Odoo, the key differences between them, and what this means for businesses still using legacy Open Source ERP or considering Odoo today.
What Is OpenERP?
Open Source ERP was a flexible, open‑source ERP system designed to centralize business operations like accounting, inventory, sales, and HR through a modular architecture. Businesses could activate only the modules they needed, making deployment incremental and cost‑effective for SMEs.
Developed by Fabien Pinckaers in Belgium, Open ERP followed an open‑core model, offering a free community version and paid enterprise services, and it benefited from an active developer community that contributed thousands of modules.
OpenERP History: From TinyERP to Odoo
The project began as TinyERP in 2005 to address the high costs and rigidity of traditional ERP systems. In 2008, it was rebranded as Open Source ERP, gained rapid traction, and grew into one of Belgium’s notable tech success stories, including recognition in fast‑growth rankings.
By the early 2010s, the ecosystem expanded around a large network of Odoo partners and community contributors, and in 2013 the Odoo Community Association (OCA) was formed to promote collaborative, open development and long‑term governance for community modules.
Why OpenERP Rebranded to Odoo
In 2014, Open Source ERP officially rebranded to Odoo to reflect its evolution from a pure ERP into a complete business application suite, including CRM, website builder, eCommerce, marketing automation, POS, and more.
The term “ERP” was seen as too narrow for the product’s growing capabilities, and the Odoo brand aligned better with a modern, global SaaS offering and a larger vision as an all‑in‑one business platform.
How OpenERP Became Odoo Software
The transition from open-source ERP to Odoo ERP was gradual, combining new modules with major version upgrades and a 2014 rebrand announcement. Existing Open ERP users moved to newer versions through data migration, module replacements, and testing, often preserving custom logic with tools like studio‑style app builders or custom developments.
Over time, Odoo adopted a more mature product strategy: regular major releases, a cloud (Odoo Online) offering, and a clear split between Odoo Community and Odoo Enterprise with proprietary features, support, and hosting options.
Core OpenERP Features (Historical)
Open-source ERP’s modular design allowed businesses to assemble a tailored ERP from a set of core apps:
- CRM and Sales: Lead and opportunity tracking, sales pipeline management, basic quotations and orders.
- Inventory and Warehouse: Multi‑warehouse support, stock moves, basic MRP integration, and real‑time inventory visibility.
- Accounting and Finance: Invoicing, payments, reconciliations, and financial reporting tightly integrated with operations.
- HR and Manufacturing: Employee records, attendance, basic payroll, and production planning linked with inventory and sales.
- Customization: Open‑source code base with community modules and custom developments for industry‑specific needs.
These capabilities made Open ERP attractive to SMEs looking for a cost‑effective alternative to proprietary ERP suites.
Modern Odoo ERP Features
Today, Odoo builds on OpenERP’s foundations with a much broader and more polished application ecosystem.
- All‑in‑One Business Software: Integrated CRM, sales, accounting, inventory, manufacturing, HR, marketing automation, website, eCommerce, helpdesk, and more in a single platform.
- Large App Ecosystem: 30+ official core apps plus tens of thousands of community and third‑party apps through the Odoo App Store.
- Deployment Options: Odoo Online (SaaS), Odoo.sh (managed cloud), and on‑premise deployments, giving flexibility to SMEs and enterprises.
- Usability and UX: Modern, mobile‑responsive web interface with improved usability, dashboards, and user productivity features compared to earlier Open Source ERP versions.
- AI and Automation (Odoo 19 and beyond): Increasing focus on AI‑powered automation, smarter recommendations, and process optimization in recent versions.
Benefits of OpenERP
OpenERP introduced several benefits that still shape Odoo’s value proposition today.
- Cost Efficiency: Open‑source core reduced licensing barriers for smaller companies and encouraged experimentation.
- Flexibility and Modularity: Businesses could start with a few modules and scale as processes matured, avoiding monolithic deployments.
- Centralized Data: Integrated modules ensured consistent, real‑time data across departments for better decision‑making.
- Ecosystem and Scalability: Community modules and partners enabled industry‑specific extensions and long‑term scalability.
Odoo amplifies these advantages with better UX, more apps, stronger cloud options, and regular releases that keep the platform evolving.
OpenERP vs Odoo ERP: Key Differences
For organizations comparing legacy OpenERP environments with modern Odoo versions, the differences are substantial.
Who each suits best:
- OpenERP: Only relevant today for maintaining older, heavily customized systems that have not yet been upgraded.
- Odoo ERP: Recommended for all new implementations and most upgrades, due to active development, security updates, and a much richer ecosystem.
OpenERP vs Odoo ERP System
| Aspect | OpenERP | Odoo ERP System |
| Interface | Basic, more technical UI | Modern, intuitive, mobile‑responsive web interface |
| Scope | Primarily core ERP modules | All‑in‑one suite (ERP, CRM, website, eCommerce, marketing, etc.) |
| Modules | Dozens of core modules + community add‑ons | 30+ official apps + large app store with thousands of modules |
| Deployment | Mostly on‑premise | SaaS (Odoo Online), managed cloud, and on‑premise options |
| Updates | Less frequent, older version stack | Regular major releases (e.g., Odoo 16–19) and ongoing SaaS updates |
| Licensing | Open‑source with paid services from partners | Community (open‑source) plus Enterprise with subscription and support |
| Customization | Code‑centric custom modules | No‑code/low‑code tools + APIs + custom modules |
| Ecosystem | Smaller, earlier‑stage ecosystem | Global partner network and large community (OCA, app developers) |
What the Evolution Means for Businesses?
For companies still running open-source ERP, the main risk is technical debt, unsupported software, security gaps, and difficulty integrating with modern tools.
Migrating to current Odoo versions offers long‑term support, ongoing improvements, better performance, and access to newer capabilities such as AI automation and cloud hosting.
Future of Odoo ERP
Odoo continues to grow rapidly, with strong revenue and headcount expansion and millions of users worldwide, positioning it as a leading mid‑market ERP and business application platform.
Upcoming and recent versions like Odoo 19 focus on AI‑driven automation, user experience enhancements, and tighter integration across supply chain, finance, and customer‑facing workflows, making upgrades increasingly attractive for existing users.
Need Help with Odoo Implementation or Migration?
If your business is running legacy Open-source ERP or planning a new Odoo rollout, partnering with experienced specialists can de‑risk the project and accelerate ROI.
OneStopOdoo provides end‑to‑end Odoo consulting, implementation, customization, accounting, and ongoing support so your team can focus on operations while the ERP foundation is handled by experts.
