The Open Source Model is Different

Open source business model is inherently different from proprietary

1. Open source licenses are not negotiable

Open source belongs to an individual but all those contibutors who added their parts. Therfore its impossible to grant licnese rights to any agency without asking permissions from all.

2. Proprietary and open source's subscription cost entails different things

The subscription cost for proprietary software includes license cost and after support services. The subscription cost for open source software incldues "code support and maintenance, security updates, error correction, and patch updates. Where it differs from a proprietary support agreement is that it includes new features and new version releases. In the proprietary model new features are only available if license fees are paid. In either case it's worth purchasing support as this delivers transparent business value."

3. Open source providers can't provide contractual indemnity

"Procurement rules usually ask for substantial penalties to be associated with promises that the software doesn’t contain any misappropriated copyright, abuses no trademarks, and does not knowingly infringe any patents. The reason you need contractual indemnity when you procure proprietary software is you have no other way to attempt to protect yourself against careless or malicious infringement of the rights you or others can reasonably expect to be protected."

We believe that promoting Open Source can incite innovation, growth and business opportunities.

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1. Divide the Procurement System into two parallel processes

Divide the Procurement System into two parallel processes; one for open source software and the other for proprietary solutions. The selection criteria will naturally vary for both solutions depending on the type of license, support available etc.

source : opensource.com

2. Use Score or Qualitative Value

Place a Score or Qualitative Value "on issues such as vendor lock-in, exit costs, speed of the development and release process, number of contributing coders/companies in relation to your risk exposure, ability to keep the code and support of interoperability standards. These are valuable attributes often over-looked by the purchaser.”

source : opensource.com

3. Consider Total Cost of Ownership

Total Cost of Ownership should be taken into account before in preferring one solution over the other. TCO includes cost of: servers, storage to run the software, implementing, configuring and running the software, data migration, license, any customization required, upgrade and patches and training.

4. Best Value for Money as an optimum choice

Best Value for Money “shall be understood as the optimization of the total cost of ownership and quality needed to meet the user’s requirements, while taking into consideration potential risk factors and resources available. The Best Value for Money solution may not necessarily offer the lowest cost.” This could be best done by ensuring “that all costs are considered within the total cost of ownership, including transportation costs, installation costs, operating costs, maintenance costs, disposal costs, etc.”

Source: United nations procurement manual 2020 REF. NO.: DOS/2020.9 30 JUNE 2020

5. Retirement Cost

Retirement Cost is the one which agencies incur once the project is retired or finished. They still need to have the system running for several years 1) for reference 2) for compliance and 3) it has all the data which is yet to be migrated to the new system. This automatically reduces TCO less for the legacy system.

Source: /www.cio.com