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.
In recent weeks, Open Source software has been making headlines again: Several European cities want to switch to free software, 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 expanded 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 available for a fee. However, the core software is usually already quite extensive and can be used for free.
Open Source software exists in all areas, 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 realm. This is a significant difference from proprietary solutions.
Corporations have perfected the use of cost and licensing systems. Often, relatively inexpensive entry-level versions lure users in, which can quickly escalate with an increasing number of users, storage space, or features. Once you've invested time in implementing new software, you're almost trapped and resigned to accepting the cost increases. 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 stays engaged.
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 adaptability to individual needs. System integration into the existing IT landscape is usually smoother and more flexible than with 'standard software', especially when the manufacturers are not the well-known global corporations. 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 solution instead of off-the-shelf products.
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, shop costs amount to about €1,700
- With an annual revenue of €500,000, costs are about €8,600
- With an annual revenue of €1,000,000, costs are about €16,000
- With an annual revenue of €5,000,000, costs are about €48,000
The Open Source solution has a value of €0 in the base version up to a few thousand € when using advanced special functions. At the same time, it offers practically endless expansion and customization options.
When Does It Make Sense to Switch to an Open Source Solution
Whenever a new software product is to be implemented, it makes sense to compare it with Open Source alternatives.
Additionally, it makes sense to inquire 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.
