When licensing fees start in the hundreds of thousands of dollars, the open-source route can start to look like the most cost-effective way for online marketers to implement a content management system. But while it may save initial cost, open-source deployments are a better solution for some than for others, according to a new report from Jupiter Research.
About 55% of companies surveyed by Jupiter that are looking to adopt new content management systems say they’ll choose open-source solutions. The chief cost saving is in avoiding the license fees attached to packaged systems. Yet the other costs attached to open source projects and a poor internal track record on technical program management are two reasons a retailer would be advised to think carefully before pursuing an open-source CMS. According to Jupiter, that "hidden" cost of staffing up to implement and maintain an open-source CMS for companies not already staffed to handle it can approach the cost of a packaged solution.
“Open source is appropriate for technically sophisticated companies that have successfully implemented open-source applications previously,” says the report’s lead analyst, Eric Peterson.
For example, reports Jupiter, online retailer BackcountryStore.com estimates it may have saved $2 million to $3 million by using open-source Interchange software. But Backcountrystore.com built its entire e-commerce platform on Interchange, including a CMS. While it required extra staffing and the time of outside consultants at BackcountryStore.com, the open-source approach still undercut the cost of licensing and developing the technology, Jupiter reports.
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