What Are the Costs Associated with OSS Accounting Systems?
The costs for an information system fall into several categories (see Exhibit 4). The primary savings for an organization adopting OSS come from the purchase cost. Generally, open source software is available for free or at a very low cost. Hardware requirements for Linux- and Unix-based operating systems (OS) are low because they run efficiently and can operate on old or used equipment. Consulting, training, and change management are usually very expensive when an organization converts to an OSS or any other system. Ongoing administrative and maintenance costs are unlikely to be significantly different for open source applications. An additional dimension of cost and time affected by open source systems is the Request for Proposal (RFP) cycle. Much of the RFP process is invested in analyzing the licensing proposals from each potential vendor, assessing the payback from the investment, and negotiating the terms and conditions of acquiring the software. Organizations utilizing OSS busin
