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Odoo implementation costs explained: key
components, estimates & cost-saving tips
May 20, 2025
Odoo implementation costs represent the total investment required to set up the Odoo ERP platform for business process management. These costs generally include the expenses for Odoo licenses, hosting, and development and implementation services, as well as solution support.
As a certified Odoo partner, Itransition helps businesses accurately estimate their Odoo investments, plan a seamless platform adoption, and implement tailored Odoo-based solutions to gain complete visibility and control over their business processes.
Core components of Odoo total costs of ownership
The total cost of ownership of an Odoo-based solution comprises several integral components.
Licensing costs
Odoo software comes in two editions: Odoo Community and Odoo Enterprise. Odoo Community Edition is an open-source version of Odoo that offers a limited number of applications free of charge, while Odoo Enterprise Edition is the product’s licensed version. Odoo Enterprise covers the entire scope of Odoo applications (including advanced features, like multi-company accounting), comes at a monthly or annual subscription fee for each user, and offers three types of Odoo pricing plans*.
One App Free | Standard | Custom | |
|---|---|---|---|
| The One App Free plan enables companies to utilize one of the Odoo applications for free for an unlimited number of users. | The Odoo Standard plan provides companies with the access to all Odoo applications to support their workflows and operations. | The Odoo Custom plan implies access to all Odoo applications and is a good fit for companies that need to manage multiple entities, customize apps with Odoo Studio, or develop custom modules, as well as integrate with third-party apps through External APIs. | |
Note | In case the application you need has dependencies on other Odoo apps (like the ecommerce module depends on website and invoicing modules), the dependent modules are also included free of charge. | This plan does not allow for Odoo module customizations via Odoo Studio and custom Odoo module development. | This plan can include priority support and custom SLAs for companies that need higher reliability. |
Hosting | Odoo Online | Odoo Online |
|
Price | Free | from $24.90/user/month** | from $37.40/user/month** |
* The annual subscription fees are a more cost-effective option and Odoo offers discounts for the first year of usage for new Odoo adopters.
** The listed software prices apply to the US region and can vary based on your location and whether you choose monthly or yearly billing.
Implementation efforts
The Odoo ERP implementation process is another significant part of Odoo's total costs. The expenses for Odoo implementation can vary greatly depending on such aspects as:
- Configuration scope and level of customization
- Integration scope
- The need for custom module development
- Data migration efforts
- User training and onboarding requirements
- IT specialists’ expertise
- Implementation methodology
Hosting costs
The choice of the hosting environment for your Odoo solution is defined by multiple factors, including your business size and complexity, current IT environment, available IT resources, budget, and security requirements. Cloud hosting with its inherent scalability and flexibility has a lower entry barrier, whereas on-premises deployment, while offering greater data security, incurs considerable initial investments, significantly increasing Odoo’s total cost of ownership.
Odoo offers three types of hosting for its applications:
Odoo Online | Odoo.sh | Odoo on-premise | |
|---|---|---|---|
| With SaaS hosting, Odoo modules are accessed directly from Odoo’s website. No server or database maintenance is required - everything is managed by Odoo.
| Odoo offers a PaaS, cloud-based hosting option for you to be able to introduce code customizations, develop new apps, and deploy third-party apps, with the cloud environment fully managed by Odoo.
| Self-hosting Odoo locally on your servers requires a certain level of technical expertise for you to manage and maintain the infrastructure (network, servers) and ensure Odoo’s proper functioning.
| |
Best for | Companies that need a hassle-free, plug-and-play ERP without customization | Businesses that need comprehensive functionality for custom development not available in Odoo Online, while minimizing the burden of infrastructure management | Companies that need to address non-trivial security or infrastructure requirements that cloud options cannot meet |
Support & maintenance efforts
A well-maintained Odoo-based system is crucial for your smooth operations and business growth. From one-time assistance with user onboarding to regular version upgrades or the development of new features, Odoo support services ensure your Odoo environment remains secure, stable, and efficient. While software support is traditionally not included in the initial Odoo investment, the cost of Odoo support should be factored into the solution’s total cost of ownership.
User onboarding & training
to ensure the smooth adoption of Odoo applications by your employees and start leveraging the system right after its implementation.
Helpdesk
to handle problems related to software usage and user-side technical issues before they escalate to operation-disrupting complications.
Continuous software monitoring & troubleshooting
to oversee Odoo’s performance and security 24/7 and timely detect and address potential issues or threats, ensuring the solution’s continuous availability.
Ongoing improvement
to timely deliver and install necessary Odoo updates as well as develop and implement new features and customizations to align the Odoo solution with your evolving business needs.
Key factors influencing Odoo costs
Odoo implementation cost factors
Required Odoo functionality
Number of Odoo users
Organizational structure
Hosting type
User onboarding & training
Ongoing support & maintenance
Data management activities
Implementation partner experience & implementation methodology
Number of third-party integrations & integration approach
Customization scope
Licensing plan
The breakdown of Odoo implementation costs
Small businesses | Midsize+ companies | |
|---|---|---|
Specifics | Standard Odoo module configuration with minor customizations and integrations setup | From moderate Odoo application customizations to more complex ones, including custom module development and multiple integrations setup |
Costs | $10,000 - $30,000+ | $50,000+ |
Timeframes | 1-3 months | 3+ months |
Note: These estimates provide a general overview of Odoo implementation costs and should not be interpreted as Itransition’s official pricing.
Get estimates for your Odoo project from certified consultants
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Our Odoo services
Consulting
We assist companies with identifying the optimal Odoo strategy and planning a step-by-step Odoo implementation process, helping ensure a smooth adoption and maximize return on investment.
Implementation
Our team provides end-to-end Odoo implementation services, helping companies adopt off-the-shelf Odoo ERP software as well as customize Odoo applications to cater to the specific business requirements of our clients.
Integration
We help companies connect their Odoo ERP solution with third-party business applications, ensuring a seamless bidirectional data flow and streamlined business operations.
Migration
Our team offers comprehensive Odoo migration services, helping companies upgrade their existing Odoo software, switch Odoo edition or hosting type, and perform full-scale migration to Odoo ERP from legacy systems.
Ensure the successful implementation of an Odoo-based solution with Itransition
Tips to reduce Odoo implementation costs
Vendor negotiations
Odoo offers multiple pricing models and flexible payment terms, along with discounts for new adopters. To optimize your licensing costs, consider negotiating with Odoo either directly or with the help of Odoo partners.
Avoiding redundant customizations
Since overcustomizing Odoo solutions increases development time and complicates Odoo updates, ultimately raising the solution’s TCO, leveraging out-of-the-box Odoo functionality and limiting customizations only to the needed ones can help save funds.
Hiring Odoo experts
Certified Odoo partners can develop an implementation plan with realistic timelines and budgets and help you avoid common implementation pitfalls, minimizing the risks of scope creep and budget overruns.
Investing in employee training
Organize proper employee training on Odoo usage to ensure a smooth transition and adoption of the new solution, which can help minimize expenses on post-implementation user support.
A solid support plan
Create a comprehensive plan for post-implementation Odoo support and maintenance to ensure quick issue resolution and minimize the possibility of costly system downtimes.
FAQs
Odoo is a comprehensive solution that helps small, medium, and large enterprises drive automation and streamline finance, sales, CRM, human resources, project management, asset and inventory management, manufacturing control, and other business processes. Here are the major benefits of Odoo that make the system a popular choice for businesses across industries:
- Modular architecture that allows companies to adopt only necessary Odoo applications.
- Intuitive interface enabling users, regardless of their technological background, to easily navigate and utilize Odoo software and address their specific needs.
- Strong integration capabilities for businesses to easily connect Odoo with third-party applications for seamless data flow across the organization.
- Scalability, ensuring that companies can promptly add new applications, custom features, or users along with the business growth.
Odoo is considered to be a more cost-effective business management solution compared to comprehensive platforms, like SAP or Dynamics 365 F&O, due to its lower licensing fees, modular approach, and no-code customization support.
Odoo provides a free demo on a demo database for companies to explore the interface and capabilities of each module and offers a free trial of its applications.
Odoo also has an Odoo Community version available, which allows companies to use many of the Odoo applications for free.
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