Open source or proprietary software? A practical guide for production companies
Emile Pierloot
on , updated
Is open source software (OSS) the right decision for your production company? In contrast to proprietary software, the possibilities in terms of flexibility and scalability are endless. Yet, not all open source applications are alike. And of course, there’s no such thing as a free lunch. Here’s a basic framework to evaluate OSS for your business.
And did you know that open source software powers 99% of all supercomputers worldwide?
Given how widespread it is, it’s clear that open source is embedded in our daily lives and businesses, including industrial environments. So it’s also important, as beneficiaries, to look beyond the hype and clear up any misconceptions.
The rise of open source in the industry
There’s no denying it: open source software (OSS) is becoming increasingly prevalent in the industrial world. Many production companies are turning to it to streamline operations, reduce costs, and foster innovation. But what are the real benefits of open source software, and where do its limitations lie?
For production companies, the key lies in knowing how to leverage OSS effectively. In this article, I’ll try to give you the basics and set up a framework for evaluating when open source solutions are right for you.
By understanding both its advantages and the challenges, you can make strategic decisions that enhance your operations and ensure your organisation stays competitive.
In this blog post, you’ll explore:
Why open source matters to the industry, to Factry and to me
What open source software (OSS) is, and what it’s not (free)
OSS vs proprietary software: what sets them apart?
When to choose OSS over proprietary software
Key takeaways to leverage OSS effectively
Why open source matters matters
I personally joined Factry because their use of open source technologies as a key differentiator intrigued me. From the start, Factry has relied on open source databases to give clients full ownership of their data and integrated seamlessly with the open source visualisation platform, Grafana.
This means there’s no vendor lock-in, and companies can store and manage their data independently of Factry’s systems. By integrating with tools like Grafana OSS as well, Factry enables their clients complete flexibility in data storage, visualisation and analysis.
As you will notice, my perspective on open source software is shaped by years of experience in the production industry, where it has always been a positive force. However, I was surprised to find that some potential customers are indifferent or even sceptical about open source. Can this be secure? Aren’t there many bugs? And don’t you lack support?
These questions drove me to explore the misconceptions around open source software, which brings us to this blog post. While there’s plenty of hype around open source, it’s important to approach it with a clear understanding and thorough research. Here we go!
What is open source software (OSS)?
Before we get started, let’s take a look at what OSS is.
Without diving into the exact definitions (and the difference between OSS, FOSS, FLOSS and free software), at its core, open source software means that the source code is available for everyone to use, modify, and share.
It’s built on two main pillars:
Freedom. You can use, modify, and distribute the software for free without special permission.
Transparency. The source code is seen as part of the software and therefore must be made available for everyone that uses it.
You might have noticed that while you can use it for free, acquiring it for free is not explicitly part of the definition. However, OSS is almost always free of charge.
Just because it’s free of charge doesn’t mean it’s without cost. Additional costs such as implementation, support, and training often come into play when choosing OSS, and should therefore be taken into account.
OSS vs proprietary software: what sets them apart?
Let’s explore the key differences between open source and proprietary software, along with the most important factors to consider when choosing the right solution for your company.
1. Flexibility
Production environments are almost never one-size-fits-all. With OSS, your company gets the freedom to adapt and modify the software to fit your unique needs. With proprietary software you’re limited to the features and configurations provided by the vendor, often without the ability to make custom changes.
The inherent flexibility of open source software also allows for rapid customisation, ensuring the software grows with and can adapt quickly to your business and industry requirements.
Example: by leveraging an open source database to store your production data, you can build a custom integration with any specialised analytics tool that is not supported by your vendor’s ecosystem, such as BI software.
And by using an open source visualisation tool, process insights can be made available to an infinite number of people, instead of a handful of technical people. This gives people in any department the freedom to explore, and learn from production data.
However, with great power comes great responsibility.
I’ve heard people argue that giving someone less flexibility or freedom can be a good thing, as it reduces the likelihood of making mistakes.
While I completely disagree with this, you do have to be aware of the added complexity and the endless possibilities that open source software offers, and you need to plan for it ahead of time.
2. Cost-effectiveness
Many businesses start thinking about open source because it’s perceived as free. Sure, for many start-ups and small-to-medium production companies, OSS allows for very cost-effective scaling.
Yet, while the software itself often has no upfront costs, there are additional expenses to consider:
Implementation: Many open source platforms require customisation and integration into existing systems, for which you need expertise.
Support: Without a vendor, you may need to source other external support, whether from the community or paid third-party services.
Training: Your team needs training to use and maintain the software, which is often not included as it would be with proprietary solutions.
For production companies, these costs can add up quickly if they’re not properly accounted for.
However, these costs mostly don’t outweigh the benefits, such as cost-effective scaling, full ownership of data, flexibility to adapt to specific needs, and avoiding vendor lock-in.
3. Community support
Popular open source tools such as Grafana and InfluxDB are supported by a powerful ecosystem of developers, enthusiasts, and industry experts collaborating on various projects. This gives you access to a global community that continuously improves the software, provides fixes, and offers support through forums and collaborative spaces.
To give you an idea: this year, Github, the world’s largest source code host, has crossed the line of 100 million developers. This community aspect generally results in a more rapid development and software improvement compared to proprietary software.
That being said, communities are not unique to OSS, communities also form around proprietary software ecosystems. But those communities are often controlled by the vendor and often do not encourage collaborative development, apart from feature suggestions.
4. Security
Is open source software safe?
As discussed earlier, a common concern about open source software is trust – trust that it’s secure, and free from significant bugs, especially since it lacks a big-name vendor behind it ensuring quality control.
Yet, Linus’s Law – “given enough eyeballs, all bugs are shallow” – suggests that with more developers working on the code, vulnerabilities are more likely to be spotted and fixed. Research supports this, showing that open source projects with many contributors have higher bug fix rates than less popular ones.
Open source software can’t rely on “security through obscurity”. Instead, it must be secure by design. Popularity is key — the more active the community, the more secure the software tends to be.
Tip: Evaluate the popularity of an OSS project before adopting it. High activity, frequent updates, and strong community engagement are good indicators of a healthy project.
When to choose OSS over proprietary software?
The choice between OSS and proprietary software depends mostly on your business’s size, complexity, and the in-house expertise that is present.
Start-ups
For start-ups or smaller companies, OSS offers an affordable entry point, allowing them to start small and scale as they grow. The freedom to adapt the software yourself can be invaluable during the growth phase.
However, over-customization can also lead to “lock-in,” making future migrations a pain. You might also become dependent on a single developer for support, which can be risky if they become unavailable.
Large enterprises
Proprietary software often comes with the support and stability large organisations need. However, OSS can still play a key role where customisation, transparency, and (data) ownership are key.
For example, a company with its own data scientists can leverage OSS platforms for custom analysis and optimisation, which might give them a competitive edge on their competition.
Buy, build, or open source?
Many mature OSS projects provide well-maintained, out-of-the-box solutions, eliminating the need to build from scratch. However, as your business grows, you might need additional features or integrations, which could require further development.
It’s important to remember: creating and maintaining software shouldn’t be your core focus unless it adds unique value to your business.
For start-ups, building custom software might seem tempting, but it can quickly become a distraction. For larger enterprises, overgrown development teams can lead to inefficiencies.
Where possible, buy ready-made software to meet your needs. Build only when it allows your business to differentiate and deliver genuine value.
Some final advice for your production company
For production companies, open source software offers tremendous potential. However, it’s essential to approach it with due diligence.
Here are some final considerations:
1. Don’t choose OSS just because it’s ‘free’.
Instead, choose open source for the freedom it offers, the ability to own, modify, and adapt your software without being locked into a vendor.
2. Be aware of additional costs
Factor in implementation, support, and training when calculating the true cost of adopting OSS. This avoids a lack of resources along the way.
3. Considering OSS? Evaluate the community first
Before committing to an OSS project, investigate the community behind it and its activity. In most cases, the more popular the project, the higher the quality and security.
4. Prioritise data ownership
If data control is a priority, OSS gives you the flexibility to store and manage data on your terms, whether in the cloud or on-premises.
5. Seek the right balance
You can have the best of both worlds by working with vendors that support OSS while providing the security, support, and training you need.
And even if you do decide to go for proprietary software, being aware of OSS alternatives can help you put some pressure on other software vendors to extend you more freedom and flexibility.
I hope this article has given you a basic framework to start evaluating OSS for your business.
If you have any questions/remarks or want to dive deeper into how Factry’s approach can benefit your production environment, feel free to reach out. We’d be more than happy to help and share insights from our own experiences.