Open source or paid software: what matters in the long run

Choosing between open source software and a paid alternative looks like a question of price. In practice, the price on day one says little. What matters is what the choice costs over the years, how much control you keep and how dependent you become on others.

Open source is often a good choice. The code is open, a community maintains it and you can adapt it to your own needs. But free doesn't mean without cost. Many open source projects now follow a freemium model, with some features behind a paywall or limits on use. And the people who run a project can change course.

In 2024, for example, a public conflict broke out between the co-founder of WordPress and WP Engine, one of the large hosting companies in its ecosystem. For a while, sites hosted there were cut off from updates through WordPress.org. Open code doesn't guarantee that the organization around it stays stable.

We've reviewed our own choices with points like these in mind. At solutions.io we used to recommend WordPress for small businesses that don't depend on their website for their main income. Today we build websites on Laravel Statamic and web applications on Laravel: one foundation for both. Below are the points we weigh in every choice like this.

Total cost of ownership (TCO)

• Up front versus over the years: Open source is often free to start with. Customization, integration and maintenance cost money over time. Paid software has license costs from the start, but support and updates may be included.

• Maintenance: With open source, you arrange troubleshooting and upgrades yourself, in-house or through a third party. With paid software, support is often part of the price. Count both over the full lifetime of the system, not just the first year.

Control and vendor lock-in

• Customization: With open source you have access to all the code, so you can adapt it to how your business works. That matters when your processes don't fit a standard package.

• Vendor lock-in: Paid software can tie you to one vendor's choices, formats and prices. With open source you keep control: you can change the code or take it to another party. Check what it takes to leave before you start.

Security and compliance

• Open code: Anyone can inspect open source code, so the community or your own team can find and fix vulnerabilities. With paid software, you depend on the vendor's timeline for security updates.

• Rules and regulations: Both have to meet the rules that apply to you, such as the GDPR. Paid tools often come with certifications. With open source, you may have to arrange and document parts of that yourself.

Support

• Community or vendor: Open source support usually comes from the community. That can be very good, but nobody is obliged to help you quickly. Paid software usually includes a support channel and agreements on response times (an SLA).

• Knowledge in the team: With open source, you need people who know the software, in your own team or at a partner. Vendors of paid software often offer training.

Lifespan of the software

• Maintenance and updates: Open source depends on its contributors. If a project loses its community or funding, development can stall. A paid product depends on the vendor's business, which can also stop or change direction.

• Predictability: Paid software usually has a fixed schedule for releases and support. Open source projects vary: some are very predictable, others are not. Look at a project's track record before you build on it.

Growth

• Scaling: Open source can grow with you, but it takes developers who know how to tune and maintain it. Many paid tools are designed to scale with less manual work.

• Cost of growth: Paid tools often charge per user or per volume, so costs rise as you grow. Open source has no license fees, but hosting and maintenance still cost money.

Integration with your other systems

• Open standards: Open source usually follows open standards, which makes it easier to connect to other systems. Paid software sometimes uses its own formats, which makes connections harder.

• Future connections: Your systems will change. With open source, you can build a connection yourself when you need one. With paid software, the vendor's roadmap decides what's possible.

Community and ecosystem

• Community: A large, active community means more extensions, more documentation and more people who know the software. A small or shrinking community is a risk.

• Partnerships: Vendors of paid software often work with other tech companies. That can give you ready-made integrations, but it also makes you more dependent on that ecosystem.

Ownership of code and data

• Code and intellectual property: With open source, you can own and control the code you build on top of it. Paid software often limits how you can use or change it.

• Data: Check where your data is stored, who can access it and how you get it back, especially with cloud software. Open source that you host yourself gives you the most control over where your data lives.

Licenses

• License terms: Open source licenses differ. Some, like the GPL, require that software you build on it and distribute is released under the same license. Paid software often has clearer terms, but may limit how you use or distribute it.

• Compliance risk: Companies are expected to know which licenses are in their software and to follow them. Keep a list of the components you use and the license each one has.

There's no answer that fits every case. Open source gives you flexibility, control and no license fees, but it asks for knowledge and maintenance. Paid software gives you predictable costs and support, but it can tie you to one vendor.

Our own choice follows from these points. Laravel is open source, has a large community and a fixed release schedule. Statamic is built on Laravel; its code is open to read, and for the Pro version you pay a license per site. Websites and applications share one foundation that we know well and can maintain for years. Wondering what fits your situation? Feel free to run it by solutions.io.