Are you looking to save on your Odoo license costs and reduce expenses? There are various strategies you can implement to minimize the cost of your Odoo licenses. In this article, we will explore ways to save money on the Odoo license.
Table of contents:
1. Odoo Enterprise
2. Types of Odoo pricing
3. How does Odoo calculate users?
4. In Odoo, which users are considered as paying users?
5. What is the cost of Odoo Enterprise based on your country?
6. How to save the Odoo license cost?
1. Odoo Enterprise
Odoo enterprise is the advanced version of Odoo ERP with the full-fledged functionality and advanced tools of operations to run the business of any form. The Odoo enterprise edition is advanced and capable of managing sophisticated business with a user-friendly approach to operations.
Odoo Enterprise provides unlimited functional support, regular updates, and both public and private cloud hosting support from Odoo S.A. As a paid version, the cost of the Odoo Enterprise license depends on the number of users and the apps being used. This license acts as a special key that unlocks the full potential of Odoo’s business software. Compared to the free version, known as Odoo Community, Odoo Enterprise offers additional features and support.
With an Odoo Enterprise license, businesses gain access to advanced tools and functionalities that help them effectively manage various aspects of their operations. These may include detailed reporting, advanced inventory management, customizable workflows, and priority support from the Odoo team. Typically, businesses pay for the Odoo Enterprise license on a subscription basis, selecting a plan that suits their needs and the number of users.
In recent times, Odoo S.A. has revised its pricing model to include all apps, making it more straightforward. However, some argue that the new pricing may be less attractive for larger companies. Despite this, investing in Odoo software is a way for companies to streamline
their processes, improve efficiency, and ultimately facilitate growth.
When it comes to Odoo, a widely-used business management software, there are two versions available: the Enterprise edition and the Community edition. What sets these editions apart is their pricing structure. While the Community edition is absolutely free to use, making it a perfect fit for small businesses and startups that operate with tight budgets, the Enterprise edition necessitates the purchase of a software license.The pricing of the enterprise version will be discussed in the following article since the community and enterprise are two distinct and independent subjects.
The Enterprise edition’s licensing is based on a per-user approach, which means that in order for every user to access the program, they must have their own license. Odoo Enterprise licensing does not put restrictions on access to certain apps or features, in contrast to other software licenses that do. By doing this, users are guaranteed access to all of Odoo’s features and apps.
Understanding how Odoo calculates licenses (i.e., users) is crucial since the pricing for Odoo Enterprise is based on a per-user model. The process for Odoo Online is straightforward: one Enterprise contract (license) corresponds to one Odoo database, which can be used to manage one company. This means that all users within that company are covered by the license.
However, if you choose to install Odoo on-premise, use Odoo.sh hosting, or have multiple companies, you will need to opt for the “custom” plan. In this case, you will still have one production database where you can manage multiple companies, and Odoo counts all users across all companies.
All ‘internal’ users are billed.
Users who have been marked as inactive or archived are excluded from being counted as paid users in Odoo. This means that if an employee leaves the company, their user account can be marked as inactive to prevent being billed for that employee. Additionally, Portal and Public users are not subject to any charges. To put it simply, in Odoo, ‘paying users’ refers to employees who have access to the Odoo backend, while clients or suppliers who access invoices or orders are categorized as ‘free users.’
The cost for Odoo Enterprise licenses differs based on the specific plans available, such as One App Free, Standard, and Custom, which are designed to suit the requirements of different businesses. The exact pricing may differ depending on the country you are in. To find the accurate fee for your specific location, you can refer to Odoo’s pricing page.
Odoo pricing depending on country (per user)
To ensure accuracy, it is advisable to directly contact Odoo to verify the pricing for a specific country, even though a spreadsheet can give an overview of pricing across countries.
1. Discount for contract term: One way to save on your Odoo license costs is to consider opting for a longer contract term, such as 2, 3, or 5 years. By choosing a longer term, you can take advantage of the first contract discount of 20% that Odoo offers. Additionally, when it comes time to renew your contract, if the charges applied during the previous term are lower than the current list price, those charges will only increase by up to 7%. This means that if you sign a 5-year contract and continue to renew for 5 years each time, the maximum price increase over the span of 15 years will be just 14%.
2. Optimizing licenses for activities across many countries: To save on Odoo license costs for businesses with operations in multiple countries, consider purchasing licenses through a company based in a region with lower license costs. While the standard pricing is based on the highest price list for clients with a global presence, you can negotiate a discounted price if the majority of your Odoo users are located in a cheaper region.
3. Negotiating discounts: If your business has more than 100 users, it can be beneficial to directly reach out to the subscription manager. Engage in a conversation about the possibility of securing additional discounts or exploring customized pricing options. Having a larger user count can often give you leverage to negotiate better terms.
Keep in mind that if you have non-essential users, you can create a custom portal and connect it to Odoo using the API to access portal information within Odoo.
Contact us for the best Odoo licensing option for your company.