So is odoo open source? The short answer is that Odoo Community is fully open source and Odoo Enterprise is not. The longer answer is about the LGPL licence, the open core business model, and the practical limits that matter when you choose between editions. This guide explains what you can and cannot do with Odoo code under each licence, and how the answer to is odoo open source should shape your ERP decision.
📋 Key Takeaways
- Odoo Community is open source under LGPL version 3. You may use, modify, and share it freely, and the custom modules you build can stay proprietary.
- Odoo Enterprise is proprietary. Source is available to subscribers and partners but cannot be redistributed, and a subscription is required to run premium modules.
- Odoo follows an open core model, an open source base with proprietary premium features, which is standard for commercial open source vendors.
- Vendor dependence is low with Community, because your data lives in PostgreSQL, and moderate with Enterprise, because premium modules need an active subscription.
- Let features decide first, then the licence. Pick the edition that fits your needs, and the licensing question resolves itself.
📑 Table of Contents
- The Open Source Claim and the Nuance
- So Is Odoo Open Source Under Community
- Enterprise and Its Proprietary Licence
- What You Can Modify and Redistribute
- What You Cannot Do With Enterprise Code
- Open Source Versus Open Core
- Vendor Dependence, Concerns and Reality
- Cost Implications of Each Model
- Hosting Freedom Under Each Licence
- How Licensing Should Shape Your Decision
- FAQs
The Open Source Claim and the Nuance
The Odoo website says open source, and for the Community edition that is true. The core framework, along with CRM, Sales, Inventory, Manufacturing, basic Accounting, Website, and many other modules, ships as open source under the LGPL licence.
- Enterprise layers proprietary modules on top, such as full Accounting, Studio, Helpdesk, Quality, and official support. These are not open source.
- The confusion comes from marketing. Odoo promotes itself as open source without always noting that the label applies to Community rather than the whole product.
- Both editions are legitimate. They simply carry different licences with different rules, and knowing which rules apply saves you from surprises later.
So Is Odoo Open Source Under Community
To answer plainly whether is odoo open source, the Community edition is where the yes lives. It runs under LGPL version 3, which gives you broad freedom over the code and how you deploy it. You can explore the modules and limits of the Community edition before committing.
What LGPL version 3 means in practice
- Free to use. Download, install, and run it for any purpose, including commercial use, with no licence fee and no user cap.
- Free to modify. Change the source, adapt it to your business, add features, and fix bugs. Changes to LGPL files stay under the same licence.
- Free to share. Distribute the software, host it for clients, or pass on modified versions, as long as the licence travels with it.
- Custom modules stay yours. Modules you build on top can remain closed and commercial, because the licence only covers the files you change, not new files you create.
Enterprise and Its Proprietary Licence
Enterprise answers the same question differently. It is a paid, proprietary product, even though Odoo shares its source with the people who pay for it.
- Subscription based. You pay an annual fee per user to run Enterprise modules. The subscription grants the right to use, not ownership.
- Source available. Unlike most proprietary software, Enterprise ships readable source to subscribers and partners, so you can debug and adjust your own instance.
- Not open source. The licence forbids sharing Enterprise code with people who do not subscribe. Source available is not the same as open source.
- Ends when payment ends. If you stop paying, Enterprise modules stop working, while Community modules keep running and your data stays in the database.
What You Can Modify and Redistribute
Rights differ sharply by edition, so it helps to see what Community actually permits. This is also where teams planning heavy tailoring should think about professional customisation services early.
What Community lets you do under LGPL
- Modify any Community source file, with your changes to those files staying under LGPL.
- Build custom modules on top, and keep those modules proprietary if you wish.
- Redistribute Community, original or modified, as long as you include the licence.
- Sell services around it, such as implementation, hosting, and support, with no restriction.
- Fork it into your own product, which is legal and something a few companies do.
What You Cannot Do With Enterprise Code
Enterprise draws firm lines. You get real access to the source, but the licence keeps that access private to your own use.
Limits under the Enterprise proprietary licence
- No redistribution. You cannot pass Enterprise code or modules to anyone who is not a subscriber, not even inside a hosted service, unless you are a certified partner.
- No resale. You cannot package Enterprise modules and sell them on their own.
- No forking. You cannot take the code and spin up a rival product.
- Private changes only. You may modify Enterprise code for your instance, but the modified code cannot leave your organisation.
Open Source Versus Open Core
Much of the debate around whether is odoo open source comes down to one distinction, the difference between open source and open core.
- Pure open source. The entire product is free to use and share, as with Linux and PostgreSQL. Revenue comes from services alone.
- Open core. The base is open source while premium features stay proprietary, as with Odoo and GitLab. Revenue comes from subscriptions plus services.
- Where Odoo sits. Community is the open base and Enterprise is the paid layer. This is neither unusual nor deceptive. It is the dominant model for commercial open source firms.
- The trade off. Open core gives you a free, working product while funding development through subscriptions, which keeps both editions alive.
Vendor Dependence, Concerns and Reality
Worries about being tied to one vendor are fair, so it helps to separate the fear from the facts for each edition.
With Community
- There is almost no dependence. The code is open and your data sits in PostgreSQL, an open database, so you can switch partners, host anywhere, or fork the code.
- Your custom modules are yours, your data is yours, and your hosting is your choice.
With Enterprise
- Dependence is moderate. Premium modules need an active subscription, so if you stop paying, Studio, advanced Accounting, and Helpdesk stop working.
- Even so, your data stays in PostgreSQL and Community modules keep running, so you lose features, not your records.
- Partner dependence is close to zero, since your subscription is with Odoo, not the partner, and you can change partners whenever you choose.
Cost Implications of Each Model
Licence cost and total cost are not the same thing, which is where many budgets go wrong. A realistic view of Odoo pricing for SMBs looks past the sticker on the licence.
- Community cost. The licence is free, but you still pay for hosting, implementation, customisation, and support. Community is licence free, not cost free.
- Enterprise cost. You pay an annual subscription per user plus hosting, implementation, and support, and in return you get features that would otherwise need custom work.
- The hidden comparison. Features like Studio and advanced Accounting come bundled with Enterprise. On Community, rebuilding them means custom development, which can make Enterprise the cheaper total for many businesses.
Hosting Freedom Under Each Licence
Hosting is one area where both editions stay flexible, and it is worth confirming before you assume any platform is mandatory. Sound hosting and administration matters under either licence.
- Community hosting. Run it anywhere, on your own server or any cloud provider, with full control over infrastructure, backups, and security.
- Enterprise hosting. Choose Odoo.sh, a self managed server with Enterprise code deployed, or a partner managed setup.
- No forced platform. Enterprise can be self hosted, so you are never locked onto one hosting service. Some pick Odoo.sh for convenience, others self host for control.
- Data portability. Both editions use PostgreSQL, so backups can move between providers at any time without asking Odoo.
How Licensing Should Shape Your Decision
Licensing should be the last question you answer, not the first. Once you know which features you need, the edition, and therefore the licence, becomes obvious. Teams outgrowing the free edition can review the signals for upgrading to Enterprise.
A practical decision framework
- Start with features. List what you need, from CRM and Inventory to full Accounting and Studio. If Community covers it, use Community. If not, the subscription is earned.
- Weigh your tolerance for dependence. If policy demands fully open software, Community is the path. If you run a normal business, moderate dependence is standard for any subscription.
- Look at total cost. A free licence with heavy custom development can cost more than a paid licence with the feature included.
- Plan your exit. Keep your data exportable, your modules documented, and your hosting portable, whichever edition you run.
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