Open Source or Closed Source Software? Enterprises are faced with this fundamental question when it comes to choosing mission-critical applications for their business. The decision for a suitable software has long-term implications and should, therefore, be considered carefully. 60% of organizations have increased their usage of Open Source Software in the last year, and the usage continues to rise at a furious pace. Even if many organizations are not aware, Open Source Software is already present in 90% of organizations in support of their IT infrastructure. We show why making a decision for Open Source Software such as Pimcore is the right choice in many cases.
What You Must Know About Open Source Software
- Key Capabilities
Open Source Software offers IT organizations distinct benefits over homegrown or third-party proprietary alternatives such as cost savings, flexibility, and latest technology innovation - Maturity Level
In the last couple of decades, the growing maturity of Open Source Software has won the trust of almost every industry vertical in terms of its reliability, scalability, and security -
Mass Adoption
From students, developers, startups, governments to big global corporations, Open Source is becoming a preferred choice for future-proof enterprise IT architecture -
Growth Curve
According to Gartner, through 2022, the percentage of Open Source within IT portfolios relative to either homegrown or licensed third-party solutions will grow by 30% compound annual growth rate (CAGR) -
Innovation
All innovations in the recent years in areas such as cloud computing, big data, artificial intelligence have happened in open source ecosystems. It has become the primary engine of innovation all around the world
Open Source Penetration Rate
Gartner says that over 95% of the IT enterprises across the globe use Open Source Software for their mission-critical IT workloads, whether they are aware of it or not. Comparing the buy vs. build option, many enterprises resort to Open Source Solutions as an alternative. From IT infrastructure modernization, application development to DevOps, Open Source Technology is also embedded deeply within commercial third-party technologies (both software and hardware).
Decreasing Popularity of Proprietary Software
Believe it or not, proprietary software is no more the first choice for enterprises. The rate at which enterprises are shunning proprietary software is quite significant. One of the primary reasons is the slow innovation pace that takes place in the enterprise proprietary software space. Enterprises want to walk the extra mile, gain the extra speed of innovation and ensure that they are not left behind.
The Future is Open Source
Today, more and more corporations look to Community Open Source or Enterprise Open Source. Community-based Open Source generally provides basic, core features at no license fee. Enterprise Open Source comes with additional high-performing enterprise features under some license cost. Enterprise Open Source is expected to rise from 36% to 44% over the next two years. According to a survey conducted by RedHat, 86% respondents reveals that Enterprise Open Source is used by the most innovative companies.
The survey data speaks to the overarching story of Enterprise Open Source and Open Source Software more broadly. It is not about being cheaper than proprietary software, or “good enough” from a technology perspective. It’s about organizations and individuals coming together to collectively invent the future. Community-based Open Source is not increasing as rapidly as Enterprise Open Source as per RedHat data, but it is on an upward trajectory — and proprietary software clearly isn’t.
Open Source is the New Innovation Engine
From WordPress, Magento, Apache Hadoop to Blockchain, what is the common thread amongst all of them? It is Open Source. The dominant software model for innovation in the new digital economy where ideas take shape with collaborative efforts— companies, individuals, and the community. This makes it such a powerful key building block of all modern enterprise software architectures. The innovation benefits conferred by Open Source have a direct impact on the business value, particularly for early market adopters.
Driving Forces for Enterprises to Go Open Source
1. Flexibility and adaptability
Proprietary software are commercial developments; the source code is only accessible to the vendor. Expensive consultant teams are necessary for integration and extensions. With Open Source Software, the source code of the software is fully accessible. This allows a high degree of flexibility for individual adaptations.
2. Independence from vendor
The use of proprietary software binds companies to the manufacturer in the long term. Vendor lock-in makes changing to alternative offers more difficult due to high exchange costs and high cost for integration, adaptation, and further development.
3. Software quality and security
Enterprise Open Source Software provides solutions that offer a variety of benefits: high-quality source code, stability, performance, and a high level of security. Global communities ensure ongoing development and promote a high level of innovation. Security gaps are quickly discovered and closed under the scrutiny of many eyes.
4. Uniform standards for interoperability
Stable and tested technologies based on open standards provide high performance and compatibility with other software solutions and IT systems. With open APIs, it can integrate with any of your future systems as new APIs can be quickly released, connected, and exchanged seamlessly.
5. Best total cost of ownership
Open Source products typically feature lower license fees or no license fees. You can do the development in-house or by freely selected IT service providers. Therefore, Open Source often provides the lowest TCO (total cost of ownership).
6. Continuous technology innovation
Because Open Source Software usually contains hundreds or even thousands of other open source products, each fulfilling a vital role, it solves critical business problems faster. 90% of organizations say it improves their speed of innovation.
The Cost of Open Source
In contrast to most proprietary software, Open Source software such as Pimcore imposes no recurring license cost for the use of the Community Edition. Only the one-time setup process of the solution requires effort in the areas of consulting and implementation. You are in complete control of your total cost of ownership (TCO) by freely choosing your update cycles, maintenance packages, and hosting infrastructure. Many providers also offer a hosted SaaS Cloud Edition or Enterprise Edition for a hassle-free setup and fast ramp-up.
The Rise Of Open Source Software
CNBC recently released a great short documentary about the Open Source movement. Open Source Software powers nearly all the world’s major companies. This software is freely available, and is developed collaboratively, maintained by a broad network that includes everyone from unpaid volunteers to employees at competing tech companies. Here’s how giving away software for free has proven to be a viable business model.
Enterprise Open Source Advantages
Economic benefits, endless innovations, newfound freedom, and hundreds of more advantages! Plus, the flexibility of a framework that can be fully controlled and modified to your exact needs. While the source code itself is freely available, the enterprise can benefit from a vendor’s 24/7 worldwide support, training and customization capabilities that cannot be easily replicated in-house. It is easier to find competitive external support, although the depth of application integration and support may vary widely.
Pimcore Open Source Capability
How Pimcore Fits Into Your Enterprise
Pimcore is a consolidated software platform to manage enterprise data and customer experience in a single place. The Pimcore Platform™ is built on a standardized, robust, modular, open and service-oriented architecture – 100% API driven. It provides a single solution for PIM, MDM, DAM, CDP, DXP/CMS, and digital commerce.
Enterprises, system integrators, and digital agencies worldwide have leveraged it in driving business transformation and boosting growth.
How we tackle known concerns
1. Unknown quality of components
74% of organizations are afraid of the unknown quality of components used in Open Source Software. Our answer is a fully transparent product road map. All code contributions and new components are reviewed. Nothing goes into the core product without prior review of the core development team. We use only fully tested, enterprise-grade components.
2. Security risks of transparent code
71% are concerned about security risks. Our answer is 'Open Core' and 'Enterprise Open Source'. Pimcore is not just a community product. All development is planned, executed, and monitored centrally. The steering committee has been working on the product since 2013. Pimcore is licensed Open Source, built, tested and certified by the Pimcore company.
3. Intellectual property concerns
66% of enterprises are not sure about their intellectual property rights when using Open Source Software. The ‘Pimcore Commercial License' provides an answer for all such concerns. It is included in the 'Enterprise Subscription' and 'Cloud Edition’, in addition to Pimcore’s Open Source GPLv3 licensed Community Edition. Pimcore is a dual-licensed platform.
