Open Source vs. SaaS: Which One Is Right For Your Business?

Open Source vs. SaaS: Which One Is Right For Your Business?

You make many decisions as an eCommerce business owner and one of the more difficult decisions can be choosing between open source or SaaS. Both options have their pros and cons, and it can be hard to decide which one is right for you. Today we’re going to discuss the benefits of both open source and SaaS software, and help you decide which option is best for your business.

What is Open Source Software?

First, let’s start with the basics — what even is open source software? Open source software is a type of software that is released under an open-source license. This means that the source code is available to the public and anyone can contribute to it. Open source software is often developed in a collaborative way, with different developers working together to improve the code.

One of the most popular examples of open source software is WordPress. WordPress is a content management system (CMS) that you can use to create a website. It’s open source, which means that anyone can contribute to the development of WordPress.

Some other examples of open source software include:

  • Drupal
  • Magento
  • Joomla!
  • WooCommerce

What is SaaS?

Now that we know what open source software is, let’s talk about SaaS. SaaS stands for “software as a service.” SaaS software is a type of software that you can access and use online. It’s typically subscription-based, which means you pay a monthly or annual fee to use the software.

One of the most popular examples of a SaaS application is Salesforce. Salesforce is a customer relationship management (CRM) system that helps businesses manage customer data. And because it’s SaaS, you can access it online and pay a subscription fee to do so.

Some other examples of SaaS applications include:

  • Google Docs
  • Hubspot
  • BigCommerce
  • Dropbox
  • Slack
  • Canva

Does It Just Mean Paid vs. Free?

Now that we know the basics of open source and SaaS software, you might be thinking “isn’t open source just free software?” The answer is no — open source software can be free or paid. It just depends on the license that the software is released under. For example, WordPress is an open-source CMS that you can use for free. However, there are also paid open-source CMS options, like Drupal.

Similarly, not all SaaS software is paid for. There are some SaaS software options that you can use for free, like Google Docs. However, most SaaS software is subscription-based and you have to pay a monthly or annual fee to use it.

Can You Be Both Open Source And SaaS?

Now that we’ve gone over the basics of open source and SaaS, you might be wondering if software can be both open source and SaaS. The answer is yes! There are some software options that are both open source and SaaS. For example, Magento is an eCommerce platform that you can use for free as open-source software. However, Magento also offers a PaaS (platform-as-a-service) option called Magento Commerce Cloud. With Magento Commerce Cloud, you get access to additional features and support that you don’t get with the open-source version.

Which One is Right For Your Business? Open Source or SaaS?

The answer depends on your needs as a business owner. If you’re looking for software that you can use for more customability, then open source might be the right option for you. However, if you’re looking for software with additional features and support, then SaaS might be a better option.

Ultimately, the decision comes down to what’s best for your business and the application or software itself. Weigh the pros and cons of each option and decide which one is right for you.

Some pros of open source software:

  • You can often use the software for free
  • The code is available to anyone, which makes it easy to find help and contribute to the development of the software
  • There are often a lot of features and plugins available
  • Because of the openness of the source code, the ceiling is often times higher for companies that need more customized solutions for their business rules and goals

Some cons of open source software:

  • The code is available to anyone, which means that people can find and exploit security vulnerabilities
  • Open source software often has a steep learning curve
  • Updates on open source code are generally not done automatically and can create a log jam in development cycles if not tended to regularly
  • Even though a business owner may be thinking that they are getting a “free” platform, the total cost of ownership can oftentimes be higher than SaaS due to the ongoing maintenance of an open-source platform

Some pros of SaaS software:

  • You don’t have to worry about hosting or managing the software yourself
  • SaaS applications are typically easy to use
  • Most SaaS applications offer a free trial so you can try before you buy

Some cons of SaaS software:

  • SaaS applications are typically more expensive than open source software
  • You usually have to pay a monthly or annual subscription fee to use the software

Need help evaluating which applications, software, or platform might be best for your business? Reach out to EYStudios, a full-service eCommerce agency, and we’ll be happy to chat with you about your options.

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