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The Future of Open Source Software in Enterprise Environments

Everyone using the Internet today benefits from open-source software. After all, much of the early stages of the Internet relied on open-source technology, and even today, developers still depend on open-source components to create proprietary software. 

However, open-source software for personal use differs significantly from software in enterprise environments. Enterprise systems are notoriously complex and tricky to work with, and it isn’t always easy to use open-source software in such environments.

Nevertheless, OSS has become more common in enterprise ecosystems for various reasons. In the following, we’ll explore the specifics of open-source software and its use in an enterprise environment. 

Open Source Software in an Enterprise Environment

Open Source Software is a collaborative form of software that allows users to learn, share, and change software according to their preferences. The core of OSS is a system that invites software developers to build upon what is already there, which often leads to

  • Accelerated development cycles
  • A robust environment for innovation
  • High-quality software products
  • Increased reliability in end-results

Recently, open-source software has begun to take root in many enterprise environments as an alternative to proprietary software. Many enterprises have started to choose OSS because of factors like costs, flexibility, and transparency.

Where proprietary software would cost firms more in licensing costs for less compatibility, open-source software has a greater chance of being the more compatible option for reduced costs (in the long run).

Open-source software is especially beneficial in the enterprise setting due to the complex nature of the systems present in enterprise environments. Since enterprise environments use a complicated combination of hardware, software, and networks to support business operations, a tailor-made system is often the ideal choice.

To further elaborate, let’s take a look at the key characteristics of open-source software:

  1. Transparency
  2. Collaboration
  3. Flexibility
  4. Community
  5. Innovation

In a large-scale operation like an enterprise, all of those characteristics are immensely valuable–even critical–to operational success.

Increased transparency, collaboration, and community will lead to synergy within the organization, while flexibility allows for digital solutions that fit the business’s needs.

Moreover, open-source software is a strong driver of innovation—something most enterprise-level organizations need.

Overall, open-source software has a significant place in an enterprise system and will only become more popular with time. But before we look into the future, let’s assess the current state of OSS in enterprises.

In a large-scale operation like an enterprise, all of those characteristics—transparency, collaboration, community, and flexibility—are immensely valuable, even critical, to the success of enterprise software development. These elements foster an environment ripe for innovation and operational efficiency, which are cornerstones of competitive advantage in today’s digital landscape.

Increased transparency, collaboration, and community within the framework of enterprise software development lead to synergy within the organization, while flexibility allows for the creation of digital solutions that precisely fit the business’s needs.

Drivers of Open Source Software in Enterprise Environments

Open-source software is currently responsible for nearly 70% of the software that enterprises in the Asia Pacific region use to drive digital innovation. This statistic alone is a strong indicator of the direction enterprises are moving in when it comes to software use and development.

Enterprise systems rely on various digital solutions for business operations, including, but certainly not limited to:

  • Enterprise Resource Planning (ERP) Systems
  • Customer Relationship Management (CRM) Systems
  • Business Intelligence and Analytics Software
  • Content Management Systems (CMS)
  • Human Resources Management Systems (HRMS)

Each of these categories already has significant market players. For instance, Salesforce is arguably the top choice for an enterprise regarding CRMs, while SAP is an excellent choice for an ERP.

That is to say, there are already many options in the market that fulfill various enterprise needs. So, what’s the point of open-source software if there are already existing solutions?

Despite the availability of proprietary, third-party solutions, open-source software remains a strong alternative for various reasons.

For one, and perhaps most importantly, open-source software allows enterprises to create and control the functionalities they want in software. With proprietary software, they would have limited control over what features they have available and how the software integrates with their other systems.

For large-scale operations with unique needs, it’s almost always better to choose the option that gives the organization more flexibility.

Secondly, proprietary software can be expensive. With the subscription model now becoming the norm for software as a service (SaaS) companies, licensing costs can quickly stack up in a large organization of thousands (or even more).

Open-source software tends to cost less than proprietary software because of:

  • Licensing fees. Open-source licenses allow users to use, modify, and distribute the software. As a result, enterprises using open-source software will have significantly reduced licensing costs versus proprietary software. 
  • Vendor Lock-ins. Purchasing proprietary software may require organizations to be tied to specific vendors or platforms, resulting in limited flexibility. Meanwhile, open-source software has the advantage of interoperability with other digital solutions. 
  • Community. Although it might seem strange that community influences costs, you’d be surprised to see how many technical professionals are willing to contribute to a project they believe in free of charge! 
  • Innovation. Open-source software also benefits from a development model that heavily encourages collaboration, which results in rapid innovation. Therefore, open-source projects tend to involve shorter release cycles than proprietary software. 

Emerging Trends and Technologies

Like all other aspects of technology, open-source technology is constantly evolving. Let’s examine a few of the more prominent emerging trends in open-source software.

Artificial Intelligence and Machine Learning

Artificial intelligence and machine learning are two of the top interests in tech lately. There seems to be an AI-enabled tool for everything: writing, content strategy, creative work, and so much more.

One way or another, artificial intelligence seems to be seeping into every part of our lives, and this is only the beginning! Artificial intelligence will continue to heavily affect daily tasks, especially because its applications are nearly endless.

Open-source software is no exception to how AI and ML have overtaken the digital space at lightning speed. By using artificial intelligence in open-source software, enterprises can:

  • Automate operational tasks
  • Gain data insights
  • Enhance decision-making across the organization.

And more. AI has limitless potential in a space as large and complex as an enterprise. We can reasonably expect that AI will continue to take up more space in enterprises in the near future.

Serverless Computing

Serverless computing allows software developers to deploy software without managing servers or adding infrastructure. Compared to conventional pathways, this is a more scalable, cost-effective development option.

There are now open-source frameworks like AWS Lambda and Kubeless, among others that allow enterprises to adopt serverless computing.

Serverless computing, a paradigm shift allowing software developers to deploy software without the hassles of managing servers or adding infrastructure, has become increasingly popular. This approach, compared to traditional pathways, offers a more scalable, cost-effective development option. It’s akin to the simplicity and efficiency that buy crypto with a credit card in Canada offers to investors—streamlined, direct, and without unnecessary complications.

Low-code/No-code Platforms

Low-code and no-code platforms are slowly emerging as some of the more significant developments in tech. As the world becomes increasingly more digital, people are now starting to gravitate towards solutions that are friendly for non-technical individuals.

There are now several open-source low-code and no-code platforms on the market. Although not all of them are built for enterprise solutions, there are still some low-code platforms that work for enterprise systems.

In the future, we can only expect more open-source platforms for no-code development.

Low-code and no-code platforms are rapidly becoming some of the most transformative developments in technology. As the world shifts deeper into digital realms, there’s a growing demand for solutions accessible to non-technical individuals, paralleling the increasing necessity for businesses to develop an AWS cloud migration strategy. Just as companies look to migrate their infrastructure and applications to the cloud to increase efficiency and scalability, they also seek out low-code and no-code platforms to democratize app development, enabling faster adaptation to market changes.

Challenges Faced by Enterprises with OSS Adoption

Open-source software has many benefits, but that doesn’t mean enterprises won’t encounter any issues with OSS adoption. Some of the most common problems these organizations face are:

  • Legal compliance. Even open-source licenses have restrictions attached to them. Enterprises using OSS must ensure they’re in compliance with the requirements of the open-source licenses they’re using to avoid any legal ramifications. 
  • Security concerns. Using OSS in enterprises can have pros and cons. While organizations are in complete control of their security measures, this can also mean that security measures can falter more easily. This is especially true for enterprises that aren’t necessarily software-forward. Organizations using OSS should implement robust security measures to protect their processes and data. 
  • Quality and stability. Proprietary software often comes with the benefit of a certain level of testing and documentation. While open-source software can still be reliable, enterprises need to constantly work on evaluating the quality of their software prior to adoption to ensure optimum performance and reliability. 
  • Support and maintenance. Once a software solution is deployed, a team must be dedicated to maintaining and providing support for end-users. In an enterprise, this can be challenging, especially in the beginning, when users are likely to still be learning and the software still has bugs to smooth out. It will be helpful to have some form of support mechanism in place to assist users when they encounter issues with the software.
  • Integration. Integration is the big thing of the 2020s. Software that can be integrated with current systems is a major plus when considering any tool (whether proprietary or open-source). Integration can be quite a challenge with enterprise-level systems due to the inherent complexity of the processes involved—especially when the OSS isn’t built to be compatible with the other software systems the organization uses. 
  • Technical skill. Technical skill, and the lack thereof, is one of the most significant hurdles an enterprise will have to overcome. Technical talent is notoriously challenging to find, and it’s an even more substantial challenge for an organization that isn’t technically aligned. Enterprises have to invest in training, hiring, or outsourcing technical talent to develop open-source software solutions. 

Conclusion

Enterprise environments are complex behemoths. Enterprises typically have numerous locations and departments and unique digital needs, not to mention thousands of users.

Open-source software allows enterprises to tailor their digital solutions specifically to the functionalities they need in software—without compromising on anything. And while there are certainly challenges that come with open-source software at the enterprise level, it’s worth it for many organizations. 

As enterprises increasingly utilize open-source software today, we can only expect utilization to soar in the future.

Nestor Gilbert

By Nestor Gilbert

Nestor Gilbert is a senior B2B and SaaS analyst and a core contributor at FinancesOnline for over 5 years. With his experience in software development and extensive knowledge of SaaS management, he writes mostly about emerging B2B technologies and their impact on the current business landscape. However, he also provides in-depth reviews on a wide range of software solutions to help businesses find suitable options for them. Through his work, he aims to help companies develop a more tech-forward approach to their operations and overcome their SaaS-related challenges.

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