Small businesses often operate on a tight budget, and finding cost-effective tech solutions is essential for success. According to a survey conducted by Techaisle, small businesses with fewer than 100 employees in the US spend an average of $1,474 per employee per year on technology. This translates to approximately $123 per employee per month.
40% of these companies named software and cloud solutions as their top technology expenses. Other significant expenses included networking and security (12%) and support and maintenance (11%).
One way to save money is by using open-source software. Open-source software means anyone can freely access its source code and modify it according to their needs. This article will explore the advantages and disadvantages of using open-source software for small businesses.
The “YES” of Open-Source Software for Small Businesses
Small businesses opt for open-source software like a home cook opting to buy raw ingredients instead of pre-made meals – you may have to put in more effort, but it often results in a more affordable outcome made up just for you. Let’s see if this works in practice and if it really helps you save money as suggested.
It’s Easy on the Wallet, from the First Sight
Open-source software comes either free or very low on cost, making it an excellent choice for small businesses looking to save money. The absence of monthly charge eliminates the need to allocate funds towards purchasing subscriptions, freeing up resources for other essential business needs.
It Allows for Extensive Customization
Open-source software offers greater flexibility and customization options compared to proprietary alternatives. With access to the source code, businesses can tweak the software to meet their specific needs. This can be a game-changer for small businesses that require unique features that aren’t available in ready-made software.
It Has Supportive Community and Resources
The open-source community are countless developers, users, and enthusiasts, meaning small businesses can benefit from a vast array of resources. This includes documentation, forums, and online chats that offer problem-solving tips and valuable advice.
It Ensures You Have No Vendor Lock-in
Using proprietary software often means becoming dependent on a single vendor for updates, support, and maintenance. By choosing open-source software, businesses can avoid vendor lock-in and maintain more control over their technology stack.
The community-driven nature of open-source software means that it can evolve and adapt even if its original developers move on. Small businesses can feel more confident about their technology choices this way.
The “NO” of Open-Source Software for Small Businesses
But is it really that rosy in practice? In theory, open-source software is a great choice for idea-driven small businesses, but it often requires more commitment than ready-made software maintained by a reputable vendor. Let’s elaborate on this.
It Doesn’t Really Saves Money, If You Want to Customize It
Adopting open-source software can require a significant investment of time and resources, particularly when customizing the software to meet a business’s unique needs. Small businesses must carefully consider whether they have the capacity to invest in the implementation of open-source solutions.
It Requires in-House Technical Expertise
Open-source software is often more difficult to set up and configure, and without the support of a team of professionals, it can be hard to troubleshoot or update. Small businesses without dedicated IT staff may find it challenging to manage open-source solutions effectively, potentially resulting in increased costs and operational bottlenecks.
In most cases, small businesses have limited budgets and resources, making it essential for them to focus on growing their business rather than dealing with the complexities of open-source software maintenance and the hiring of technical specialists.
It Offers Limited Support and Documentation
Even though open-source software has a huge community behind it, it may not always provide the same level of support and documentation. Due to the fact that open-source software isn’t always updated by its original provider and most of the time doesn’t offer technical support, businesses might end up paying third-party providers to fix their issues.
It Raises Security Concerns You’d Better Forget
While open-source software can offer enhanced security due to its collaborative development process, it may also be more vulnerable to security threats if not properly maintained. Small businesses must stay vigilant in keeping their open-source software up-to-date and addressing any security vulnerabilities that may arise.
In the 2021 State of Open Source Vulnerabilities report by WhiteSource, it was found that there was a 151% increase in the number of reported open-source vulnerabilities in 2020 compared to the previous year. The report also showed that 85% of the vulnerabilities were discovered in indirect dependencies, making it difficult for developers to track and address these security risks.
So, What is The Final Verdict?
Although choosing open-source software for a small business is tempting, this kind of solution generally works better for medium-to-large enterprises.
It’s especially true when you choose a tech stack to build your business on. Thus, businesses in, say, advertising won’t be able to run their day-to-day operations without a decent ad tech platform.
It’s better to pay hundreds for a monthly subscription here than to pick an open-source platform and spend thousands each month improving and customizing it. According to Epom, maintaining an open-source ad server will take $125,000+ just for salaries per year.
When it comes to essential tools for businesses aka CRM or BI, it only makes sense if you have specific business needs that can’t be satisfied by basic solutions on the market. The time, effort, and expertise required can distract from the primary goal — growing and succeeding in your niche. In this case, carefully choosing a suitable vendor might be the wiser path for small businesses to stay focused and thrive.
Also read: 10 Reasons To Sell with WooCommerce in 2023
