Abstract | Firms increasingly rely on open source software for solving business problems and building mission-critical IT solutions. However, there are numerous issues associated with OSS, including its influence on the total cost of ownership (TCO) and supportability and upgradeability risks. While savings from obtaining a free copy of the software can be significant, software accounts for an average of 10% of TCO, while the majority of the costs are associated with project staffing. OSS requires significant investment into staffing because it needs to be carefully selected, customized, and installed. In addition, global communities may gather and dissolve at their will, so guarantees of support, revision, and bug fixes are minimal. Yet companies can gain competitive advantage through an ability to customize software to address specific business issues and exercising control over development, revision schedules, and modifications. OSS is not a panacea from the rising software costs. Instead, it is a serious initiative that has benefits, disadvantages, and risks associated with it.
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