There is a cost to owning and maintaining software that goes well beyond the purchase price of the software itself. Of course, there is the cost for purchasing the software. Typically this is a one-time event and depending on the type and brand of the software, the cost can be in the thousands, even hundreds of thousands of dollars. Several factors today are changing all of that including Software As a Service or SaaS and various cloud offerings, which are often available at a monthly cost. These solutions may not necessarily cost less over time but they do make getting started with a new software application more affordable.
Open source is another game changer in bringing down the cost of software to more affordable levels. In many cases, the software may even be free. A good example of this is PostBooks®, xTuple's free accounting software for small business owners. It is one of several products offered by xTuple. It's a comprehensive product that's been downloaded over a 500,000 times and is in use all over the world — for free!
Beyond the cost of the software there are fees and expenses that should also be considered in the total cost of ownership, how much does it really cost me to run this application? These additional expenses include hardware, maintenance, service and support — not to mention time and effort. Your software selection may require that you completely change your existing hardware. Does it require Windows? Does it run on Apple hardware? Can it run on Linux?
Open source can be considerably more flexible in lots of ways including hardware options. In the case of xTuple, which can run on a Windows, Mac or Linux, what may seem like a small thing can actually save you thousands of dollars. Being able to use the server of your choice and existing hardware puts you in control and provides you with flexibility not possible with most other software options.
Bottom line, open source doesn't mean there are no costs but it may certainly mean lower costs and more options. Open source, especially in the case of xTuple, means freedom to make the choices that are right for your business.