Most of us are not aware that when it comes to software companies, there are some small companies that are thriving behind the shadows of the giants like Microsoft, Oracle, IBM, SUN and so on. These small companies are proven to be more cost effective.

Small to medium companies are usually short in money and hierarchy. Because there is a little money available, small developer companies are having a hard time to get development tools and infrastructure products that can help them boost their revenue. This is the advantage of using an Open Source Solution. Many small companies find it very cost effective to start building products using open source tools and then move into commercial implementations once they have prove the concepts. This proved to be cost effective way to build product without having to worry spending thousand of dollars on tools alone.

The many tools product that is being offered between open source and commercial programs had built a competition which leads to lowering their prices. Open sources has been a boon for small software vendors and their customers. Giant software companies are fully aware that open source tools will have a negative impact to their market. Open source has successfully made creating solutions for some software platforms. So by providing open source alternatives, it fosters competition that eventually dies after they got enough market shares. Some of the companies are now giving back to the open source tools. Many companies have realized that having an open source can mean survival for their business. We could expect more commercial product vendors contribute to open source business where everyone can benefits.

Open source solution can also be helpful to students who want to learn more about programming and can be a boon for experienced programmer. Students who cannot afford to buy commercial programs usually end up using illegal copies. On the other hand, by participating in innovative or specialized project, a programmer can build his own reputation that enhances his importance in the market place.

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Article Source:China Sourcing Blog

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