In this article, we discuss how our clients save time and money by using Open Source components as the foundation for their custom software projects.
Recently, Open Source software has been making headlines again: Several European cities want to switch to free software to save costs and escape the vendor lock-in of software giants. 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 available and free. This means 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 basic version, with optional extension plugins under a paid model. However, the core software is usually already quite extensive and available for free.
Open Source software exists in all areas, ranging from operating systems like Linux, office suites like LibreOffice, e-commerce/shop systems like Magento or Vendure, to CMS and CRM software.
Custom Software Based on Open Source: Benefits 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 realm. This is a significant difference from proprietary solutions.
Corporations have perfected the use of cost and licensing systems. Often, quite affordable entry-level options lure you in, which can quickly escalate with an increasing number of users, storage space, or features. Once you've invested time in implementing the new software, you're almost trapped and resigned to the rising costs. This is the infamous vendor lock-in.
Independence & Future Security
This brings us to the next point: You become completely dependent on a vendor. This prevents you from exploring other options from the outset. When it comes to the development of new technical standards, you can only hope that the vendor keeps up.
With price increases and model changes from the vendor, you usually have to comply, and you have no influence over technological advancements.
Flexibility & Adaptability
A particular strength of open program code is its easier extensibility to individual needs. System integration into the existing IT landscape is usually more seamless and flexible 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, you gain new features faster and 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 meet specific requirements due to its Open Source approach – a tailored suit instead of off-the-shelf solutions.
In addition to licensing costs, proprietary software often incurs usage fees, such as a % margin participation in shop revenue for shop systems. We 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 basic 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, comparing it with Open Source alternatives is worthwhile.
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, 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.
