The Value of Open-Source Software in a Receding Economy

In today's declining economy, open source software (OSS) has a huge advantage over licensed software. In essence, OSS is much cheaper than commercial software - it is hard to get a lower price than free. In addition, open sourced programs are much more reliable and structurally sound than their licensed counterparts, as individual users and developers are free to work out any problems with the system. Another advantage of OSS is its high responsiveness to the needs of users; if people need a program to perform a certain function, they can change it themselves rather than wait for the next expensive model to fix the problems of the present.

In addition to its operating prowess, open source software benefits from marketing on Google. People search for open source and find many free, alternative programs that provide solutions to their problems at home or work. This helps many upstart companies get a foot in the open source market. One such example is KnowledgeTree, a company based in South Africa, which develops document management software. CEO Daniel Chalef said his company receives an enormous amount of traffic from Google - about "5,000 downloads at a time."

This diversification in the open source market keeps program development speed high and creates proximity to the customer's needs. Although it seems counterintuitive that a company providing free software can profit, OSS businesses commonly employ a support seller model. In this, initial product distribution is free but branding and after-sale service costs money. Red Hat, a major open source program developer, follows this model closely.

If you are interested in open source software for nonprofits, contact the developers at Mpower today at 800.562.5150.