In Current economic situation, implementation of ERP systems in small or large organizations have become necessary in order to reduce operational cost, facilitate day to day management and support strategic planning. In many organizations CIOs are facing major Commercial ERP system related issues regarding cost management, vendor management, complex implementation, integration with different systems , customization of ERP system with business processes, change management and licensing issues. The Open Source Software movement has made tremendous impact in the business world. Well managed open source software development reduce restrictive license related cost, improve software quality, reduce software development time and provides customer specific customizable applications. Many organizations have gained benefits from open source software by reducing cost involved in implementation, integration, licensing and customization with existing business processes. Instead of all these open source software benefits CIOs should carefully deal with open source ERP applications because may be implementation of such systems reveals business processes and logic, which are key strategic assets of business, if CIOs are not aware of licensing process of open source ERP software. Also CIOs need to focus on security related concerns, version control related issues, accountability and code quality related issues.
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