Dear Readers,

My conversations with customers and partners often lead to the topic of open source software. It?s easy to think of open source software as ?free?. And of course I understand well that price is a major consideration in any investment. But, I think it is important to remember that open source software is not synonymous with ?free? and that purchase price is not the same as costs.

Naturally, here at SAPERION we keep a close eye on developments in open source. For instance, we have learned a great deal from successful development methods like Agile Development and Distributed Engineering. We even use open source tools for our own products.

But what do you really need to know about open source software? The most important thing to be aware of is the large, independent, yet highly organized community of developers who have distinguished themselves with well-known open source products like typo3, Apache, and Linux. These products have a high degree of investment security because continued development does not depend on a single company. Furthermore, there will always be a large pool of experts from which to draw.

Recently, however, more and more companies are using the ?open source? label for marketing purposes. Although the source code is in fact completely open, these products do not have a large, independent community of developers, nor is the software truly free of costs for professional usage. And this brings us to the second major point: Always look closely at the true costs of using open source software. Many products are offered in Community and Enterprise versions. If you are serious about using the software at your company, the latter version is your only real choice. And - I'm almost embarrassed to mention it: Do not confuse purchase price with costs. Total Cost of Ownership is often much different after three to five years than after two years. And I am fairly certain that you do not want to replace your company?s central archive every two years?

Best regards,

Rudolf Gessinger
CEO, SAPERION AG Berlin