Optaros identifies three major reasons why open source is becoming an important force in the CRM space:

• Customer satisfaction: many companies have had negative experiences in integrating and managing large functionality-loaded CRM packages (e.g. Siebel, PeopleSoft, SAP). Companies want to return to a flexible, manageable CRM solution that offers a low total cost of ownership, minimal vendor lock-in and an open architecture allowing the system to grow as the business grows.
• Open source and open standards: Open source CRM – through open source and open standards – provides unmatched flexibility in terms of modifications and integration standards, and is in many cases a "more than good enough" starting point, bringing in the base functionality you need at a low cost, while allowing you to in a straight-forward way implement specific functionality.
• Application Assembly: Open source enables you to evaluate products and components hands-on, and gives you the freedom to assemble solutions from pre-built components – basically opening up a middle way between the classical approaches of package implementation and customer development.

Depending on the nature of the business problem you want to address, different implementation approaches are called for. An open source based CRM implementation can be very competitive in the following situations:

• a package-centric approach for a front-office oriented solution with reasonably standard requirements, e.g. sales force automation, marketing & campaign management, customer service & support
• an application assembly approach for when the organization is faced with non-standard requirements, complex and tight integration with mission-critical applications, or when it is addressing a very confined issue, e.g. a highly integrated multi-channel customer support platform, partner integration, or extensions to an existing CRM infrastructure

While evaluating the open source CRM product and component landscape, we have come across and analyzed a number of products. Three very interesting players in the package category are SugarCRM, Compiere and openCRX:

• SugarCRM has a model that combines the dynamics of open source with the commercial reality of a competitive CRM market. SugarCRM provides an intuitive user interface, relatively easy technology to work with, and introduces new functions and features at a rapid rate.
• openCRX provides a mature enterprise-class J2EE architecture with a sophisticated security model and a model driven architecture approach that is suitable for large and complex integration and development efforts.
• Compiere has proven over time to enjoy the support of an active community staying true to its open source principles, and a solid installed base of customers leveraging the CRM and ERP features of this package.

In addition, we have investigated the major open source products and components in the areas of Technology & Integration Platforms, Business Intelligence, Multi-channel Integration, eService & eCommerce, and Workflow Management. Our conclusion is that these products are rapidly maturing and are now ready to serve as building blocks for advanced CRM solutions.

This Optaros white paper provides an overview of the open source domain relevant to Customer Relationship Management (CRM) solutions, and explains why, when, and how an open source based approach makes sense when implementing CRM solutions. The paper also provides insights we made when evaluating some key open source CRM products and components.