Open source software can be defined as software distributed under a licensing agreement which allows the source code (computer code) to be shared, viewed and modified by other users and organisations.
Open source software enables innovation by providing users with the freedom and flexibility to adapt the software to suit, without restriction. However, innovation may or may not be passed on to all users of the software. It is a user’s prerogative whether they wish to share their innovation with any online communities, and users must be actively participating in these communities to become aware of such innovations. It has been debated whether customized changes to the original source code limit the future support and growth of the software, as these can potentially result in a limited ability to apply future updates, fixes or modules aimed at improving the software, leaving the user with a version that may have irresolvable issues. It is relevant to note that open source software providers generally struggle to attract large scale R&D.
Open source software relies on its online community network to deliver support via forums and blogs. While there are massive, loyal and engaged online communities that users can turn to, time-poor consumers of today are familiar with the immediate service and support that enables issues to be resolved in a timely manner, and these communities cannot guarantee the high level of responsive service and support proprietary software can offer.
Open source software requires a certain level of technical expertise in order to manage content. It is therefore important to take into consideration the costs incurred once the software is obtained may be substantial unless the resources are already in place to manage it. Long term costs include the cost of implementation, innovation, the opportunity cost incurred battling with service/support issues, and the costs associated with investment in infrastructure due to a general inability to scale (assuming the organisation will grow and develop and will therefore have evolving requirements). Notably, open source software providers are increasingly charging for add- on, additional services and integration. The total cost of ownership for open source software may roughly equal some closed source options as a result
Closed source software can be defined as proprietary software distributed under a licensing agreement to authorized users with private modification, copying and republishing restrictions.
Closed Source do not allow users to view or alter the source code. While this may be viewed as a disadvantage to some, it ensures the security and reliability of the software. Furthermore, many proprietary software providers customize software for specific users to provide more flexibility while investing in R&D in order to regularly offer new products and upgrades. Moreover, proprietary software providers have online user communities that create value by sharing ideas, strategies and best practices through feedback mechanisms such as forums and surveys, which also foster innovation and allow the product to adapt with changing needs. This innovation comes fully tested, and is available to all users of the software.
It does not require investment in R&D or the technical understanding of source code, and assistance with implementation is generally part of the package. Because vendors must ensure their software does not become redundant, users also benefit from the type of targeted innovation undertaken- continuous investment in R&D rather than “innovation for innovation’s sake”, business focused rather than technology focused.
Service is probably the greatest advantage of using proprietary software. Proprietary software providers offer ongoing support to users, a key selling point for users without technical expertise.
If the user manual or guide is not enough, or if a user experiences a problem with the software, there is an immediate point of call to turn to for assistance. There is a certain reduction in the risk undertaken with proprietary software because users are working with companies that are viable, and people with intimate knowledge of the products and services being used should any questions arise. Because service is one of the main reasons users choose proprietary over open source software, many proprietary software providers compete on service, increasing the bargaining power of buyers and thereby increasing customer service levels among providers.
The cost of closed source software will vary from a few thousand to a few hundred thousand dollars, depending on the complexity of the system required. This cost is made up of a base fee for software, integration and services and annual licensin g/support fees. This cost may be prohibitive for some; however what the user is paying for is a more customized product from a trusted brand that includes higher levels of security and functionality, continuous innovation, a greater ability to scale, ongoing training and support and a lower requirement for technical skills. In order to support these elements and maintain high availability websites, a mechanism must be in place to recoup the costs. As mentioned previously, increasingly open source software providers are also charging for add-ons, additional services, and integration, reducing the gap in cost between the two options.
