The IT industry can be a fascinating place. Has there ever been an industry where enthusiasts working from their bedrooms can actually create products that can rival those released by major corporations?
Or where wars are waged – not in the courts or penthouse offices, but in bits of corrupt code unleashed over the internet to bring down the evil software products of greedy corporations.
It’s this “us against them” mentality that has spawned a cottage industry of software products all vying to either compete with, or be bought out by, the Microsoft-style monoliths that rule the market.
Such is the enthusiasm and community spirit of some developers that they are prepared to work on software products for no charge at all in the hope of getting a valuable credit on their resumes.
There are those too who simply set out to create a product that not-for-profit organisations or smaller business can use to further their respective causes or simply for the good old advancement of technology.
Internet free-for-all
These community-based efforts have realised some wonderful initiatives. The internet itself is credited to open source development teams – which explains why it is essentially free.
However, open source is by no means foolproof. Because it is “public domain” it is often difficult to pinpoint where the buck stops. And of course being free of charge, there isn’t a buck to stop in the first place.
Instead, governance committees are often (and voluntarily) formed to provide standards and regulations for use of products built on open source platforms.
As far as the web solutions are concerned, open source is one of the three main sources of technology, the others being proprietary systems operated by businesses, and custom development, where developers are hired to develop given technology.
But with web technology rapidly becoming commoditised (as reported here recently) prices of proprietary technology are plummeting, putting what were once sophisticated capabilities in the hands of the smallest business.
Free SaaS vs paid SaaS
For example, little more than five years ago, a website system that included a professional content management system, secure shopping cart, email marketing system, form builder and so on, would cost well into six figures to build, meaning only larger organisations could employ them.
Now thanks to progressive Australian companies like Business Catalyst, eknowhow, The Web Showroom, Ashop eCommerce and literally dozens of others, features like these can be “rented” for well under $100 a month, including hosting, support and upgrades. This business model, known as software-as-a-service (SaaS) or application service providers, works by licensing the technology to you rather than you owning the software as such.
Unlike open source solutions, these systems are fully supported and developed by the organisations who invest in them, knowing that if their products aren’t well developed and supported, they will soon go out of business – an automatic safety net.
Is it worth the risk?
Which begs the question – why would you stake your business’s all important online presence on a free and ultimately unsupported software when a sound and fully supported proprietary system is so affordable?
Can you really risk your online presence on a technology that has essentially been developed by a bunch of enthusiasts looking to further their careers?
As a proprietor of a web firm that is agnostic of technology, I often ask myself the same question.
Our business model is based on “the best technology for the budget and requirement of the client”, which means we have to be as unbiased as we can when sourcing web systems. Yes some proprietary system providers offer a retail margin, but these make up a tiny fraction of our
revenues and are therefore not a factor in recommending a solution.
As much as there are some very comprehensive and easy to use open source systems out there, we keep coming back to the same issues time and time again.
If something goes wrong, we want fast and accountable resolution, not hoping that the guy who is the guru on that particular functionality is online at that time and not sleeping, or partying or on vacation.
Of course, as you get to know systems better, the need for fast support diminishes. However it doesn’t remove the fundamental discomfort that really, nobody is ultimately responsible if your solution should fall over.
But perhaps I’m over-reacting.
I’d love to hear from business operators or managers who are successfully using open source systems. And of course from those whose experience hasn’t been so rosy. Just add your comments below.
Craig Reardon is a leading eBusiness educator and founder and director of independent web services firm The E Team which provide the gamut of ‘pre-built’ website solutions, technologies and services to SMEs in Melbourne and beyond. www.theeteam.com.au
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