Odoo vs OpenERP: How the System Evolved to Lead the ERP Market.

Enterprise Resource Planning (ERP) systems have become the technological backbone of modern businesses. As organizations increasingly focus on automation, digital transformation, and real-time visibility, ERP platforms have grown to meet complex needs. Among these platforms, Odoo stands out as one of the fastest-growing, most flexible, and most widely adopted business management solutions in the world. But many businesses still ask an important question: What exactly is the difference between Odoo and OpenERP?

The truth is that Odoo and OpenERP are not two separate systems they are two stages of the same evolving platform. What began as OpenERP transformed over time into Odoo, becoming more powerful, modern, and business-oriented than ever before. This article explores the full evolution from OpenERP to Odoo, the milestones that shaped it, and the reasons why Odoo now leads the global ERP market.

1. The Early Days: How OpenERP Started

Before Odoo became the name everyone recognizes today, the platform was known as OpenERP, and before that, TinyERP.

The system began as an open-source solution designed to help small and medium-sized companies manage their operations without paying for expensive licensed ERP systems.

Key characteristics of OpenERP in its early phase:

• Fully open-source and community driven

• Focused heavily on backend business modules (accounting, inventory, HR, CRM)

• Designed for affordability and customization

• Primarily used by small businesses and developers

The system was robust and modular, but still lacked the user experience, design quality, and full ecosystem we now associate with Odoo. Over time, the developers realized that businesses needed more than just ERP  needed a complete suite of apps for every part of digital operations.

2. Why the Name Changed: From OpenERP to Odoo

In 2014, the company announced a major rebranding from OpenERP to Odoo. This was not just a name change it marked a complete transformation in product direction.

Reasons behind the transition:

1. The system grew beyond ERP

By 2014, the platform was no longer just accounting, HR, and inventory. New apps included:

• Websites

• eCommerce

• Marketing tools

• POS systems

• Social media integration

The word “ERP” became too limiting.

2. Aiming for a global brand identity

The name OpenERP clearly positioned it as open-source software, but not necessarily as a product suitable for enterprise-level companies. The new name Odoo was short, unique, and market-friendly.

3. Expanding business model

The new brand supported:

• Paid enterprise versions

• Cloud hosting

• Partner networks

• App store ecosystems

In short, Odoo needed a brand that matched its new capabilities and global ambitions.

3. What Stayed the Same After the Transition

Even though the system evolved significantly, several foundational principles remained unchanged:

• Open-source core remains available

Odoo continues to provide a community version that is free and open-source.

• Modular design philosophy stays intact

Users can still install only the apps they need.

•  Scalability and customization remain central

Developers and businesses can extend the system endlessly.

The transition did not remove the strengths of OpenERP, it expanded them.

4. What Changed: The Major Innovations After Becoming Odoo

The leap from OpenERP to Odoo came with major upgrades that reshaped the platform and positioned it as a leader in the ERP market.

1. A modern, intuitive user interface

Odoo moved to a sleek, web-based interface that made navigation easier, faster, and visually appealing.

2. Fully integrated business ecosystem

Unlike traditional ERP systems, Odoo included apps beyond business operations:

• Website builder

• Online store

• Email marketing

• SMS marketing

• Social media management

• Helpdesk

• Live chat

This all-in-one approach made it unique in the ERP space.

3. Cloud hosting and SaaS model

The introduction of Odoo Online made ERP accessible to businesses without servers or complicated IT requirements.

4. App Store ecosystem

Odoo created a marketplace with thousands of third-party apps, making the system infinitely flexible.

5. Faster performance and better scalability

Every new version comes with performance boosts, database improvements, and enhanced security.

6. Enterprise version with premium features

Large companies gained access to:

• Advanced modules

• Priority support

• Upgrades

• Studio app for no-code customization

This opened the door for enterprise adoption.

5. Odoo vs OpenERP: Key Differences Explained

Although they are part of the same evolution, the two versions differ significantly.

Below is a comparison of the most important aspects.

1. User Interface and Experience

2. Scope of Applications

3. Technology & Performance

• Odoo is faster, more secure, and optimized for large-scale operations.

• OpenERP lacked many performance enhancements and modern frameworks.

4. Customization & Development

Both are customizable, but Odoo offers:

• Odoo Studio (drag-and-drop app builder)

• Better APIs

• More modules

• Larger developer community

5. Cloud Capabilities

• OpenERP → Mostly on-premise

• Odoo → Cloud, on-premise, hybrid hosting options

6. Business Model

OpenERP was almost entirely community-driven.

Odoo provides:

• Community edition

• Enterprise edition

• Cloud hosting

• Professional services

This makes Odoo accessible for all business sizes.

6. How Odoo Became a Market Leader

Odoo’s growth has been rapid and global. Many factors contributed to its leadership position:

1. All-in-one platform

Odoo replaced the need for multiple software tools:

• ERP

• CRM

• Website builder

• eCommerce

• Inventory

• POS

• HR

• Marketing automation

This integration gives businesses unified visibility and smoother workflows.

2. Affordability

Compared to SAP or Oracle, Odoo is significantly more cost-effective while still offering enterprise-level functionality.

3. Constant innovation

Every year, Odoo releases a new version with hundreds of improvements, modern UI updates, and faster performance.

4. Large ecosystem

Thousands of partners, developers, and integrators contribute to the system’s growth.

5. Open-source advantage

Being open-source ensures transparency, flexibility, and community support.

7. Why Businesses Prefer Odoo Today

Companies choose Odoo for several strategic reasons:

•  Lower total cost of ownership

No need to buy expensive licenses or maintain multiple tools.

•  Faster digital transformation

Implementing Odoo reduces IT complexity and speeds up automation.

•  Scalable for all business sizes

From startups to large enterprises, Odoo fits all.

• Industry-specific solutions

Manufacturing, retail, healthcare, logistics, F&B, education Odoo apps support them all.

•  Full control and customization

Businesses can tailor workflows exactly to their operations.

8. Is OpenERP Still Used Today?

Some older companies still use OpenERP versions such as 6.1, 7, and 8, but these versions are:

• Outdated

• No longer supported by Odoo

• Missing modern features

• Less secure

Most organizations migrate to newer Odoo versions for better performance, stability, and future-proofing.

9. Odoo’s Future: What’s Next?

Odoo continues to expand beyond ERP, integrating artificial intelligence, automation, and cloud capabilities. Future trends include:

• AI-powered automations

• More no-code development tools

• Enhanced supply chain and retail features

• Better mobile experiences

• Expanded global hosting options

The platform is evolving into a unified operating system for businesses.

Conclusion

Odoo and OpenERP represent two phases of one powerful ERP journey. OpenERP laid the foundation as an open-source, modular business system. Odoo expanded that foundation into a complete ecosystem that includes ERP, CRM, eCommerce, websites, marketing, POS, and moreall under one platform.

Today, Odoo leads the ERP market because it combines flexibility, affordability, ease of use, and continuous innovation. The evolution from OpenERP to Odoo is a perfect example of how software can grow with business needs, transforming from a basic ERP into a global digital transformation powerhouse.

If you're considering adopting an ERP or upgrading an older system, Odoo stands as one of the most advanced, scalable, and future-ready choices available.