In this article, we discuss how our clients save time and money by using Open Source components as the basis for their custom software projects.
In recent weeks, Open Source software has been prominently featured in the news: Several European cities want to switch to free software, save costs, and escape the vendor locks of software giants. And these are exactly the reasons why we showcase Open Source alternatives in the development of custom client software (e.g., portals, online shops, or apps).
Open Source: Significance
Software consists of program code that represents the logic of the application. Unlike 'Closed Source', in the Open Source approach, this program code is publicly and freely available. This means that the code is accessible to the broader software community and can be seamlessly extended and improved by them.
At the same time, Open Source code is commercially free in most cases, meaning it can be used without costs. Some providers create Open Source programs as a base version, with optional extension plugins in a paid model. However, the basic software is usually already very extensive and can be used free of charge.
Open Source software exists in all areas, ranging from operating systems like Linux, to office suites like LibreOffice, e-commerce/shop systems like Magento or Vendure, to CMS and CRM software.
Custom Software Based on Open Source: Advantages for Companies
Cost Advantages
The cost advantage is obvious and self-explanatory. There are no acquisition or licensing costs when operating in the Open Source area. This is an important difference from proprietary solutions.
Corporations have perfected the use of cost and licensing systems. Often, quite affordable entry-level variants lure, which quickly escalate with an increasing number of users, storage space, or functionality. Once you have invested some time in the introduction of the new software, you are almost trapped and accept the cost increases resignedly. This is the infamous vendor lock-in.
Independence & Future Security
This brings us to the next point: You become completely dependent on a manufacturer. This prevents you from exploring other options from the outset. Regarding the further development of new technical standards, you can only hope that the manufacturer stays on track.
With price increases and model changes from the manufacturer, you usually have to comply, and you have no influence on technological advancements.
A particular strength of open program code is its easier extensibility to individual needs. System integration into the existing IT landscape usually goes more seamlessly and flexibly than with 'standard software', especially when the manufacturers are not the well-known global corporations. Thus, custom software can automate existing business processes most directly.
Security, Quality, Innovation
Since Open Source software is often continuously developed by a broad community of volunteers, new features are obtained more quickly, and you automatically benefit from ongoing quality assurance.
Examples of Open Source Software: How Our Clients Benefit
LEAN-CODERS develops custom software, such as web portals, online shops, integration platforms, or mobile apps. In the area of e-commerce solutions, we also use the Open Source software Vendure.
Commercial online shop systems usually rely on low entry barriers in the cost segment. Once the shop is established, you quickly enter higher licensing cost areas. Therefore, in addition to our own simple shop system for small shops, we have Vendure as an Open Source e-commerce partner, with which we can also implement large systems.
Vendure can be easily extended to specific requirements due to its Open Source approach – a tailored suit instead of off-the-shelf goods.
In addition to licensing costs, proprietary software often incurs usage fees, in the case of shop systems, for example, a % margin participation in shop revenue. We have calculated the annual fees for operating an online shop with a common/popular platform:
- With an annual revenue of €100,000, we arrive at shop costs of about €1,700
- With an annual revenue of €500,000, the costs are about €8,600
- With an annual revenue of €1,000,000, about €16,000 is incurred
- With an annual revenue of €5,000,000, it amounts to about €48,000
The Open Source solution has a value of €0 in the base version up to a value of a few thousand € when using extended special functions. At the same time, it offers practically endless extension and customization options.
When is it worth switching to an Open Source solution
Whenever a new software product is to be implemented, it is worth comparing with Open Source alternatives.
Moreover, it makes sense to inform yourself in the following cases:
- When licensing costs & fees for the current proprietary system become too high
- When many custom extensions/process adjustments/automations need to be implemented
How can I get advice?
With years of experience in implementing Open Source custom software projects across various industries, we know the best practices, the typical pitfalls, and the best Open Source alternatives to common software products.
Feel free to schedule a short conversation with us to find out if and how you can save costs with Open Source while also better digitizing your business processes.
