Odoo & Google's Relationship Continues to Grow Amidst Discussion of Possible ERP Acquisition, But Is It All Talk?
Hey, Odooers! I thought today, we could discuss the future of Odoo and the foundations which are starting to be built for further growth and investment.
Over the last couple of weeks, there has been an increased amount of tech talk and conversation, discussing the relationship between Odoo and Google Cloud. With other key Odoo Community members like, Michel Stroom also posing the thought. With Odoo also now posing over 13+ Million active users, it has been quite the topic.
With the latest strategic partnership being announced just before the New Year and further investment being taken into consideration via the likes of investments from CapitalG, the key question on everyone's lips has been, could Google acquire Odoo?
→ Watch the Odoo and Google announcement video below to learn more.
I thought I would add my thoughts into this conversation, and give insight into my personal view of what could happen in 2025 and beyond for organisations.
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This Edition's Ingredients
Let's take a look at this article's ripe ingredients to see what's coming up.
- Odoo's Relationship With Google
- Google's Investment History
- Is CapitalG's Investment Setting Up Odoo For Acquisition?
If you missed my last article, it's one you might want to take a look back on, after this.
With companies across the globe now implementing Odoo, changing from legacy systems and accessing their current set-up, the process of GAP Analysis has never been more important, and when it comes to Odoo, the case remains the same. Check out my article from last week, as I discuss the importance of it and how to get started. 🔓
Odoo's Relationship With Google
Let's first start by assessing the relationship between them.
It was only before the New Year in 2024 that Odoo announced an 'enhanced strategic partnership' with Google Cloud to support Odoo's global reach and infrastructure. Odoo's apps would still continue to provide users with a quality experience and quick response times even as the demand increases for complex business tasks and peak usage.
But how far do we foresee this relationship growing, and what does it entail?
→ Leveraging the Google infrastructure further
→ Enhancing Odoo's product speed and reliability
→ Minimising downtime
→ Higher security due to Google Cloud
→ Utilising Google's Technology capabilities
Sébastien Bruyr, Chief Commercial Officer (CCO) at Odoo, further talked about the importance of Cloud Technology in the company's growing expansion.
"At Odoo, we provide a comprehensive suite of business applications, and we need a secure reliable, and scalable cloud infrastructure to deliver those applications to our customers globally. Google Cloud provides us with exactly that - the right machines, the international reach and the ability to scale quickly. It's a natural fit for us."
Additionally, Anthony Cirot, VP EMEA South at Google Cloud, also added:
"Our partnership to support Odoo's continued growth aligns with our commitment to empowering our customers with secure and robust solutions that benefit their users." By leveraging Google Cloud's global infrastructure, Odoo can focus on delivering comprehensive, high-performance business applications to its customers around the world, while we ensure those applications run seamlessly and reliably."
From the comments we have heard from both senior figures and Google's perspective on strategy, it's clear it makes a good fit for all parties.
The collaboration reinforces the multi-cloud infrastructure, which meets the demands of Odoo's growing customer base, which now stretches across 175 different countries. Not to mention Google Cloud's footprint in regions such as the Middle East and India, which Odoo is also known for being dominant across.
Sebastien Bruyr, also later highlighted...
"Google Cloud is crucial in helping us scale our infrastructure quickly and efficiently. Its services are smooth to implement, develop and apply, offering us flexibility to quickly get extra resources such as compute and block storage. Most importantly, it provides the security and reliability we need, with very few incidents over the past seven or eight years."
Odoo and Google's values also match up when it comes to core values away from the tech world as well. Focusing on a lower carbon impact and attention to sustainability to improve operational reputation with environmentally-conscious clientele.
I think it's also important to note Odoo's affinity with Google as a suite of products as well. With Odoo running their operations on Google's suite utilising apps such as Slides, Drive, Docs, etc, it's one that I can see them migrating anytime soon. given the worldwide adaptability of their suite and also useability, which is a core value Odoo relates to a lot on their platform.
In reference to another source, that being Mark Vigoroso, MBA of ERP Today, is a great summary of the topic and what the relationship further brings for both parties.
Is CapitalG's Investment Setting Up Odoo For Acquisition?
Now we discuss the golden question.
Is the strategic partnership with Google, including the further investment from CapitalG, setting up the bigger picture for acquisition?
While it's not a big jump to make, with typical companies and people seeing this as the first step in the right direction, it's one I feel at this time is a bit wide of the mark.
While I won't go into the full context of the recent €5 Billion valuation, it is one that has sparked further discussion on this topic. You can read my previous article on that below, and the outline of the investment that Odoo has brokered:
Odoo Valuation Reaches €5 Billion with €500 Million Deal
Firstly, CapitalG investments don't typically lead to further company acquisition but, moreover, push the company to go public, which we know from the previous comments and Odoo's own article that they have no interest in doing so at this current stage. Of course, in the tech business, they always refer to 'never say never,' and they won't try to at some point, but it quite clearly seems that is not in the current plans.
CapitalG Is Alphabet's Independant Growth Fund
I think one point which has not also been taken into account yet is how self-sufficent Odoo has become and the legacy they have built by themselves up until this point. A comprehensive ERP system which is tackling the market in a different way. It's growing in adoption and awareness, and that is only going to get bigger.
Including when they look to expand into even further markets.
It's been a mixed reception across the Odoo Community with Google's introduction into the wider ecosystem. Many users and members further discuss what this could mean for the long-term vision and the repercussions for the Belgian giant.
Users on Reddit took to the forums to share their thoughts and views:
'I don't think that is true with CapitalG investments. I'm unable to find one company which was then acquired by Google/Alphabet after CapitalG took part in a funding round. More companies they invested in went public rather than being acquired.'
'Google also bought YouTube, which is one of the best decisions ever made. They have made a few other acquisitions which are not doing to bad either...'
Despite the gloom in this, as many some suggest, Pieter Van den Weghe, summed it up perfectly in a previous thread on LinkedIn, as shown above.
"I noticed some pessimistic opinons in this discussion about the partnership with Google, but let's be honest: in today's world, you can only achieve true growth by backing one of the Big Five. And yes, becoming big is exactly what Odoo intends to do. It's also a necessity to remain relevant and credible for really large integrations."
I have to agree as well. The partnerships which Odoo continue to make across others, like KPMG and Deloitte, are staples to that ambition in wanting to succeed further.
In Summary
Well, I suppose it's time to share my thoughts on how this could play out for both parties in the short term and the long term.
Google is a big name for any organisation, one of the biggest if we are being honest with ourselves. While they don't have the greatest reputation for acquiring businesses and spitting them back out again, their path suggests a 50/50 split based on previous history. Given Odoo's relationship with Google, we could be seeing a longer vision with Odoo being integrated into the wider Google product suite, but we might be a little off that just yet. Google is a popular solution for SMBs however, which we know Odoo likes to take a big vision towards. It all depends on the specific market segments which the ERP platform wants to target, and we know they do that quite well across certain sectors and regions.
Even based on my personal experience.
If they were to go down that route with Google, it would be one fueled by big risk but a big reward if it was pulled off correctly. As Odoo continues to grow its presence in the US, it could become a big factor. Their presence has been for sure noted, especially in the Buffalo and San Francisco area and the impact they have made in a short period.
Lastly, I think a mention has to be given to the leadership team at Odoo, especially Fabien Pinckaers and his vision or ethics. Odoo has got to the point it is today, under his leadership and guidance. I feel he still has far much more to give before even questioning that statement. Product focus has always come first, with an eye on the value which is given to the end user. That changes, and everything which has been worked for with Odoo almost vanishes immediately.
In any case, and also this one, it would take two to tango, as the saying goes.
I would be very, very surprised. Almost astonished. I just can't see it happening. But maybe in this case, it's that time-old phrase of 'never say never' as it goes.
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