Question: Organization Weighs Use of Open Source Software

You began operating a small general electric contracting company two years ago. Originally, it was just you and your cousin, but it has grown to five licensed electricians, plus one office manager who takes calls from customers, schedules the work, and orders parts and supplies. Your company handles a wide range of work, including installing new circuit breaker panels, rewiring existing electrical systems for renovations and additions, and installing residential light fixtures, security lighting systems, swimming pool lighting, and ceiling fans. Business has really taken off, and your current manual systems and procedures can no longer keep pace. The office manager has been exploring several options and has identified three different software packages designed for small contractors. Each one of the packages includes software designed for managing parts and supplies inventory, scheduling jobs, and invoicing customers. Two of the software packages are from large, well-known companies, and each has an initial licensing cost of roughly $550 plus $100 per year for software support. The other software package is open-source software, with no initial cost and no support cost. The office manager is unsure how to proceed.

Review Questions

1. What is the primary difference between purchasing licensed software from a software manufacturer and using open-source software?

2. What are the pros and cons of using open-source software?

Critical Thinking Questions

1. What risks and start-up issues are associated with the use of any new software that is designed to replace manual procedures?

2. What actions can be taken to reduce these risks?