SaaS Types
What is Open-Source SaaS?
Published: July 22, 2024
Last updated: January 31, 2025

What is Open-Source SaaS, and How Does It Differ from Traditional SaaS?
Open-source SaaS(software-as-a-service) is a software delivery model that gives users free access to the source code to analyze, use, customize, or distribute.
While proprietary or traditional SaaS also ensures a cloud-based delivery, it differs from open-source by keeping the source code closed.
How Can Open-Source SaaS Benefit Businesses, Both Financially and Technologically?
Open-source SaaS has both financial and technical advantages.
Financial Advantages
- Ownership costs: Developers are not required to cover license costs when adjusting open-source solutions.
- Regular system updates: Open-source technology evolves quickly.
- Community support: Developers can use dedicated communities to obtain additional product knowledge about this SaaS type.
Technological Benefits:
- System flexibility: Open-source technology provides developers with more customization features than traditional SaaS, responding to diverse business requirements.
- Integration: Open-source SaaS connects with existing software.
- More control: With no vendor lock-in in open-source SaaS, developers own their software stack and SaaS infrastructure.
Businesses choosing open-source SaaS may be required to invest in software customization and ensure data protection.
What Are the Advantages and Disadvantages of Using Open-Source SaaS Over Proprietary SaaS?
Using open-source SaaS instead of proprietary SaaS can be the right decision for the following reasons:
- Open-source can be adapted to respond to various requirements.
- Open-source technology employs fewer resources than proprietary SaaS.
- Open-source communities offer user and technical guidance to developers.
- Open-source software goes through regular verifications for security reasons.
However, there are certain disadvantages that come with this software model:
- It requires extensive technical expertise to maintain and modify.
- Because users are less dependent on vendor support, internal resources are prioritized. Businesses are responsible for monitoring and ensuring data security.
Real-life examples:
- Chatwoot: This is an open-source customer engagement platform that keeps its codebase public on Github and allows other developers to modify it.
- Robocorp: This cloud platform for robotic process automation (RPA) offers users open-source tools.
Feature | Open-Source SaaS | Proprietary SaaS |
---|---|---|
Code Accessibility | ||
Source Code | Publicly available, can be modified | Closed, controlled by vendor |
Customization | High flexibility, full system adaptation | Limited customization options |
Support & Maintenance | ||
Technical Support | Community-driven support | Vendor-provided support |
Resource Requirements | Requires internal technical expertise | Vendor handles most technical aspects |
Update Mechanism | Rapid community-driven updates | Controlled vendor updates |
Business Considerations | ||
Cost Structure | No license costs, potential customization expenses | Regular licensing fees |
Vendor Lock-in | No vendor lock-in | High vendor dependency |
Security Management | Internal responsibility, community verification | Vendor-managed security protocols |
How Can Startups and Small Businesses Leverage Open-Source SaaS to Achieve Success?
Open-source SaaS lets small and medium businesses use software CRMs (customer relationship management) or project collaboration tools with limited resource usage.
Additionally, companies using open-source SaaS can develop agile products.
Focus on open-source SaaS that offers resources and access to a community to ensure a thorough understanding of the technology.
What Are the Best Practices for Implementing and Managing Open-Source SaaS Solutions?
Here are some tips for the proper implementation and management of open-source solutions:
- Conduct thorough evaluations of internal technical capabilities and determine what outsourcing requirements might appear.
- Consider open-source SaaS software that has an involved community to help developers understand and use the product.
- Constantly update your product to ensure system agility and prioritize security upgrades for stability.
Conclusion
Open-source SaaS is a software delivery model that fits businesses in need of in-depth customization and control. It is important to establish your technical requirements before selecting an open-source software option.