xTuple: Open Source ERP Generates Partner Profits

xTuple, a small provider of open source ERP (enterprise resource planning) software, has a few surprising statements for channel partners: The company is profitable and has no plans to launch a SaaS (software as a service) platform because President and CEO Ned Lilly does not want to compete with channel partners. But that’s not all.

As part of his growth strategy for xTuple, Lilly says the company plans to launch an online exchange — where channel partners and software developers can post, share and sell code extensions to xTuple’s software. Stay tuned to The VAR Guy for a launch date.

xTuple faces plenty of competition from Compiere, Openbravo and other open source ERP providers. Just last week, Compiere announced a major, channel-driven open source ERP deployment in France.

But the open source ERP market seems to be big enough for multiple players, and xTuple seems to be making a name for itself. Indeed, xTuple was ranked 23 in The VAR Guy’s Open Source 50 report, which tracks open source partner programs.

Maintaining Control

Instead of taking venture funding, xTuple has quietly focused on self-funding efforts, allowing Lilly and his management team to closely control the company’s strategic direction. Among xTuple’s next moves: Launching a point-of-sale software system, which could position to company to compete even more fiercely against Openbravo.

Based in Spain but expanding to North America, Openbravo pushed beyond ERP and acquired an open source POS system in 2007.

For a closer look at xTuple’s strategy, check out this company profile developed by the 451 Group, a market research firm that tracks enterprise IT.

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