CAN FREE “OPEN SOURCE” ACCOUNTING SOFTWARE DOMINATE?

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News Archive > 2008 > Mar > 31
With all the advantages that open source users enjoy, it will be difficult for proprietary software to compete.
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United States of America (Press Release) March 31, 2008 -- “Open source software” (OSS) licenses give users the right to use a program for any purpose and redistribute it freely. It seems that a business model like this could not succeed. However, the advantages are clear. While open source accounting software is in its infancy, it is poised to dominate the market just as many other OSS products have.

The most notable competition between Microsoft and OSS is web servers where Apache beats Microsoft's market share 58% to 34% according to Netcraft’s survey published April 2007. An IBM-sponsored study on Linux suggested that Linux has “won” the server war as of 2006 as 83% were using Linux with only 23% for Windows. Over 170,000 open source projects are listed at SourceForge.net. Searching “accounting software” returns 11,000 projects.

Will the OSS success carry over to the accounting software market? Mo Kelly, a consultant with Rockwall-Computer.com, says “It seems inevitable. Many of my clients have enjoyed the benefits of customized accounting software since that is my specialty.” However, webERP is free and end users share changes made to the software. This will give OSS accounting software an advantage over any other business model.

“I chose webERP,” Mo says, “because the package is web based. Multiple locations can be connected securely without any technical help. The server software will run on any operating system. Any client with an Internet browser can access the software. You can change clients or servers without modifying the software. It is difficult to imagine an accounting package that is more portable and scalable. Last month, webERP was downloaded over 6,000 times.

Open Source Software is an old concept like pioneers helping each other build a barn. End users help each other with enhancements and support. Last year, many enhancements were added to webERP. Submissions are managed by two main developers Phil Daintree and Tim Schofield. Recently, because of significant contributions to the project, Mo Kelly was added as one of the seven co-developers.

Some proprietary accounting packages are popular because they are inexpensive. These packages are feature-rich but are often difficult to use because there are so many menu choices. When you have the source code, you can remove choices and add features.

OSS is advantageous for the developers since they become popular consultants. Source Forge encourages users to support developers by using their services.

The real beneficiary is the end user. That is why the model works. Imagine calling for phone support and the first person you speak with is familiar, able to answer any question you could possibly have and suggests enhancements to make your life easier. With proprietary software, you never get to speak to the developers and often wish you had a translator when seeking support.

www.dwheeler.com/oss_fs_why.html
developer.apple.com/opensource/index.html


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